All Forum Posts by: Jordan Whitworth

Thanks as well Alex, I do have one commercial lender in the area I spoke with in the past on a different package. I'll reach out to him to see what he is offering. 

Thanks Anthony. How does that work if you want to sell off one of the properties in the future, if they are tied under one loan? Only reason we would look to go traditional on any of them is because the low interest rates. We do have an LLC set up and could put them into the LLC with no issues. Agree completely on the PM, I already have that set up in the area.

Fellow BPer's, 

I've done 3 or 4 deals already with traditional financing but I have an opportunity to potentially buy 6 units (3 duplexes) with a partner. We can still afford/qualify 4 of the units under traditional financing if we choose but the last duplex would need a portfolio lender due to qualifying issues with DTI. We have enough cash to comfortably buy 4 units but the last two would squeeze us pretty tight. The deal will cash flow really well and could still continue to appreciate over the next few years.

Anyone had experience on putting a deal like this together? Buy all under 1 portfolio loan? buy some traditional some portfolio? Maybe get a LOC to fund some of the purchase of the last duplex to keep some of our cash reserves and pay off the LOC over the next year or so?

Just looking for best practices on something like this. 

Thanks! 

Nice job, looks great! 

How do you not do a background check though? 

I had the same issue trying to get HELOC's on the rental in my name. I just had moved them into LLC's yet because i didn't want my loan to get called and have to get a commercial loan on them. My rates are so low on my properties right now. Let me know what you find out.

Thanks! 

Hi Jim,

I don't have the exact answer for you but I'm going through the same thing right now. Do you have umrella policies on your rentals now? Is the main reason you want to move them into LLC for BLOC or protection?

Curtis,

If you are looking for strictly cash flow I would look at MF to try and max out your cash flow and keep your closing cost low from purchasing multiple units under one loan. What markets have you identified as potential fits? I would reach out to local lenders in the area. They usually can keep competitive and keep closing cost low. I bought a duplex in Chattanooga last year for $174,000k with 25% down and closing cost were around 5k. I used regions and my rate was 2.75%. Monthly rents are $1875 gross and my cash flow is around $800 per month after expenses,cap ex, PM, and mortgage payment. Hope this helps! 

Hi Curtis, @Curtis Davis

Awesome you taking the plunge into real estate to get your investing career started and you have a great starting point with $70,000 in cash for a down payment. How you spend that money depends on the goals you want to accomplish. What kind of returns are you looking for from a cash flow perspective, ROI, etc... Do you have a particular type of property you are looking to buy? There are many different way to invest that $70,000 into real estate.