All Forum Posts by: Joshua Walker

@Chris Seveney

Yes if I lock it into a 30 year fixed now the rate would be 7.5% and I’d cash flow about $270 a month.

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*This link comes directly from our calculators, based on information input by the member who posted.

Hey everyone!  I need some of the experts that post on this forum to help me out on this deal.  I've been investing in single family homes for a few years and have acquired ten properties in that time.  This would be my first multifamily investment.  Currently the property is setup as a daycare that previously was a duplex.  The property is pretty dated and will need updating, kitchens and bathrooms added and the wall that separates the two sided of the duplex replaced. The calculator does allow for the specific details on this property. Basically I would be doing a subject to loan with an initial purchase price of 100K putting 20K down paying interest only at 5.5% until the remodel is completed. The bank will finance the the rehab and once everything is done lock in the interest rate at 2 points above prime at that time.  Then it would be a 5 year fixed 25 year amortization type loan. I'm expecting the rehab to take about 6 months and I should easily be able to get $1000 per unit in rent.  I would not be cash flowing much, if anything during the 5 year period at the current interest rates.  

Here's the tricky part,  I hoping interest rates will go back down during the 5 year fixed period and I can do a cash out refi at a fixed rate somewhere around 4% over 30 years, where it would cash flow pretty well.  I would do the refi in my personal name to try to get that lower rate.  

Please share your thoughts on this. I'm pretty torn on this one. 

Thank you both for the insight.  Any Ideas where I may find a Louisiana Lease Agreement for this type of rental?

Good Morning Biggerpockets family! I have a 3300 sqft 5 bed 2 bath home that I am renting. I have a business interested in renting the home for their employees to stay in when working in the area. Can anyone share their thoughts on this and would anyone have a Louisiana lease agreement for this type of agreement they can share? I have 11 other properties, all SFR, and have never run across this before. I've checked references on the business, which all spoke highly of the company and their employees. Any advice would be appreciated.

I've run into an unanticipated issue from all the lenders I have spoke to in my local area and want to see if it is common in other parts of the country. The only commercial loans that any lender in my area we make are 5 year balloon with 25 year amortization and 20% down for buying property through an LLC. Is this loan structure common everywhere? Interest rates are currently as low as we will probably see in our lives, but who know where they will be in 5 years.

I've spoke to one regional bank and two local banks so far.  I'll try a couple of credit unions.  Thanks for the advise. 

I'm running into some unexpected terms and rates trying to finance my first rental property through banks and want to get opinions and input from other here. I'm ready to purchase my first rental property from another landlord. I've ran the numbers and everything seems good. It should cashflow about $300 a month. The problem I having is that the banks that I spoke to are mostly all wanting to do a 15 year ARM type loan. Once bank will do a 20 year loan.

A few details about the purchase: Purchase price is $100K, I'm wanting to put 20% down. So I would be borrowing $80K. The house appraised for $100K and the current tenant has been there for over a year. She has no plans of leaving anytime soon. I'm purchasing it through a newly created LLC, so my personal credit score is a factor. My current credit rating is excellent, so no problem there.

The banks are telling me these are the longest loans they can make on an 80K loan. Do any of you have experience in this and what is normal for commercial loans for rental properties. I have been doing all of my analysis using 30 year terms, so naturally this changes my ROI significantly.

I looking at buying my first rental property using a HELOC from my primary home and need some advise as to the steps I should take. First a little about the property; Its and a 1100 sq ft 2 bed 1 bath single family house that is currently rented for $550.00 per month. The current owner is willing to sell it for $35,000. It's a wood frame house on pillars that needs some fixing up, but overall nothing major. If I use my HELOC to purchase the property out right, how do I make sure the title is clear, should I get a new appraisal or use the appraisal the current owner has that is a couple of years old. Is there any thing else that I should have done that would normally be done when financing through a bank that I'm not thinking of to help protect my investment.

My overall plan is to make some repairs and try to bring the value up as much as possible so I can get the rent up and refinance the house to get the money I took out of my HELOC back so I can invest in other properties.

Hey Leonard,

It's funny you responded today to this post. In researching, I discovered the property owner owned several other properties besides the ones we were originally talking about. I found that he has two properties, a duplex and a single family, that are  actually in pretty good shape from what I can tell on Google maps.  I had all but gave up on this deal, but decided to call the property directly today to see if there is any way we could work something out on these two properties. We were negotiating originally through our realtors.  Monday I will go look at the properties with him and talk about pricing.  It's not the 20 unit deal originally thought, but hopefully I can make a deal on 3 units.  

Is anyone else still having problems with the new buy and hold calculator?  It's not adding expenses properly in the calculation for me.  The management fee, vacancy, capex and maintenance costs are not showing up when I print the PDF.  The main reason I signed up for pro was for the calculators.  Are the old calculators still available?  I can't find them.