All Forum Posts by: Julianna Barnes

 Hey @Don Taylor! I'll definitely reach out! 

 Hey @Brandon Croucier, I know that's right! lol I had no idea once you go over 4 units the financing starts to get much more difficult to find. We're getting approved no problem with DSCR, it's just the down payment being so high and really not wanting to tie up so much of our liquid capital into one property. I'm really looking for some expert advice on what the smartest thing to do would be to get about half of the funds from a different source. The lender we're speaking with said they don't source the down payment funds so we can get it from a PML, 2nd mortgage, personal loan, etc. Just not sure what the most financially sound decision would be or whether there's any loop holes lenders know about that could get the down payment lower. Thanks for your advice!

 Not much room to add a whole lot of value. The property was already totally remodeled into a 6 unit property so most of it has already been renovated. We plan to add some laundry units and update the kitchens to have kitchen islands in them, but that probably won't change the market value by much. It was however already appraised by the previous buyer and it appraised for about $30K over what we're purchasing it for. Not sure if that makes a huge difference on anything though. I'm going to look into 2nd position financing on our AL property, seems like most people have been saying the same thing. Would it make more sense to go that route or to just get a private money loan to help fund some of the down payment instead? Thank you!! 

@Erik Estrada We have a lender that's currently looking into doing 20% down for it due to the properties current cash flow and our financial situations being pretty solid. It may require a slightly higher interest rate but it wouldn't change the monthly payment too much based on what we were told so we would be okay with that as the property has solid cash flow regardless. It sounds like 20% will be the absolute best that we can currently get though. I've looked into doing a cash out refinance on my other investment property but with the current rates being so high and our current rate being so low (2.25%) it just wouldn't make sense financially to lose out on so much of the cash flow we currently are making on that one. For a HELOC we've been told that they take a long time to process (45 days+) and we don't have the time to wait for it to go through. I haven't heard of a DSCR based 2nd mortgage though, would that be on the other investment property I have or the one we're currently trying to obtain? I would love any insight/advice you have on any good options for funding about $40K of the dp so we aren't tying so much of our liquid capital into this one property. The lender we're speaking with said they don't source the down payment funds so we can get a 2nd loan for a portion of the funds to go towards the dp if needed. Thanks for your response!

Hey everyone! I am looking for a private money lender that can fund on a 6 unit property in the Bay county area for around $400K with great monthly cash flow. I have already been preapproved through various DSCR/Commercial lenders however they are all requiring 25%-30% for the down payment. I have the capital available for that size of a down payment but I really don't want to tie up that much cash into one property. I am wondering if there are any lenders on here that are able to fund the entirety of the loan with at least a 10%-20% down payment and/or a private money lender that can help fund the 25%-30% down payment with one of the lenders I have already been preapproved with. I also have another investment property located in Enterprise, Alabama that has about $150K of equity currently in it. However, after running some numbers on a cash out refinance, the current rates would nearly obliterate the $800/m I'm gaining in cash flow on that property as it currently has a 2.25% interest rate. Does anyone have any creative financing advice that we could get this deal done without needing as much upfront cash? Seller is absolutely not willing to do seller financing of any kind as she is sick and needs the cash now. Thank you to everyone who responds!

Investment Info:

Single-family residence commercial investment investment.

Purchase price: $140,000

Single family new construction home, 3 bed/2 bath, located in Enterprise, Alabama.

What made you interested in investing in this type of deal?

I purchased this property as a primary residence with a VA loan and lived in it for approximately 2 years prior to renting it out. My plan was to either sell it if it had appreciated enough or to rent it out as a long term rental. We decided to rent it out and the property now cash flows us $800/m with a 2.25% rate.

How did you find this deal and how did you negotiate it?

I found this deal on Zillow and negotiated the deal directly with the builder.

How did you finance this deal?

VA financing

How did you add value to the deal?

We added some custom details to the property to make it more appealing for our tenants as well as manage the property effectively and efficiently so that our tenants always wish to stay residing in the property.

What was the outcome?

Great cash flow every month that contributes to our passive income portfolio.