All Forum Posts by: Kenneth Williams

So I'm currently in the process of purchasing my first deal! A fourplex here in San Antonio for $108K (Owner wants of the rental game). My intentions are to perform the Brrr strategy so I will also be borrowing an additional $12K for light based cosmetic rehab to each unit. Bringing my HML to a total of $120K. The property is fully occupied and grossing $2400 per month. Current owner pays water and each tenant pays their own electrical. After visiting the property and talking with two of the tenants I would probably classify the property as being "C" or just very low income area. From what I've been reading on the forum there is a difference between the two. All in all I'm fine with the area. I grew up in similar environments so I get it. I work full time for Uncle Sam so I will definitely need property management. With that being said a few things I'm unsure about...

My HML will be dependent on the appraisal next week. I need the ARV to come in around $170K. The wholesaler insist that the property would easily come in around $190K. Thing is there aren't any other multi family properties in the area to compare it to. How will this decision be made? Will the cash flow be taking in to account? I looked the property up on AgentPro247 and its accessed around $80K which seems extremely low in my opinion.

I think the current tenants are on a year long lease. How does one go about doing a small cosmetic rehab (paint walls and cabinets, new vinyl floors)  if the tenants are still occupying the unit?

From what the tenants told me the current owner has been somewhat of a friend to them. Accepting cash payments monthly. These are not exactly the type of folks who I imagine have a checking account at the local credit union. No judgement but what are my options here? Is there some alternative being used for individuals in these types of neighborhoods who have bank accounts?

In the back of the fourplex there is what appears to be a mini storage house. One of the tenants mentioned how they have to travel extremely far on the bus for the closest laundry mat. Would it be worth it to put some sort of laundry system on site? What would be the best route to go? Coin machines? Purchase a couple of scratch and dent units and a flat fee of $50 to the rents? Or just leave well enough alone?

What type of Insurance do I need to be looking at getting? 

Obviously I am gonna want out of my hard money loan asap. I spoke with Navy Federal Credit Union and they said there is no seasoning period for refinancing (although the young lady didn't seem to be all that knowledgable). So essentially I could start the pre approval processes now for the Refi and maybe only have carry the HML for a month or so?

Once the Refi is complete at what point can I tap into the equity? Cash out Refi is a no go in Texas from what I understand, so I would be applying for a HELOC.

What contingencies should be included in the contract offer? 

Thanks in advance!

@Sam Ragan Did you ever find out if Navy Federal is doing HELOCs on rental properties? I've gotten conflicting answers thus far. Thanks

@Fas McO'nen Did you close on this deal? I'm the process of purchasing my first deal (a four poleax located here in San Antonio). Would love to here any advice you might have to give.

thanks!

@Brian Phelt I'm actually still actively looking. If you have anyone else that you can recommend it would be appreciated.

@Rickie Mincy Well said. 

Very Inspiring! I would love to here how you got the price down to $104K. Brilliant work. Whooah

Bump

I'm curious as if they're any traditional loan programs that offer a lower down payment than the standard 20% without the property being owner occupied? 

I'm looking to purchase a (4)multiplex that's fully leased for the few years and generating $2400 monthly, but would prefer not to wipe out my savings account with the down payment. My wife and I bought our house a year and half ago so moving and uprooting the kids is not an option. She's active duty Air Force (13 years). I work for the Air Force in a civil service position (11years) . Both of our credit scores are in the 700's. I've been pre approved for 200K hard money, but would prefer to finance this Investment through a credit union or bank without putting 20% down. Any feedback would be appreciated.

@Kristopher Williams  Let me know If you're still mentoring/ offering guidance. I'm definitely interested and serious.