All Forum Posts by: Ken Virzi

Well this thread died sadly :(

@Ben Leybovich Well even the webinars and BP calculators are all using pure percentages 🤷🏽‍♂️

When crunching the numbers all I seem to see people using are percentages. Obviously some things are, such as mamagement. But most costs are t based on percentages. For example, a roof costs the same for a building that rents for $900 vs one that rents for $1400. With a capex percent based line the $900 rental would have less then the $1400 rental but the actual cost would be the same. 

Add replacing or fixing a toilet, lawn care, sometimes even insurance and it seems to be most costs would be a higher percent the lower the rental amount. 

If we used actual numbers when looking at the numbers would anyone buy a place with less than $1,000 under one roof?

*lowering (not losing)

Seems like in a few different markets I’m watching properties are constantly losing their listing prices and often sold under listing price. Has the market slowed down? Are buyers drying up? Is the foreign cash no longer driving up prices? What’s going on?

Originally posted by @Dave Lawrence:

You can do HELOCs on rental properties through Pentagon Federal CU ("PenFed"). If you own more than 3 rentals and DON'T own your primary residence, you're out of luck, but otherwise... Competitive rates, no appraisal necessary (unless you want to pay for one, in the hopes of getting a better number on your investment prop). Not a bad option... They're also good for mortgages on investment properties (currently 4.5%, 30 yr am, 10 yr balloon)...

I use PenFed and have two investment property HELOCs with them. I do not have any owner occupied properties. I had to pay for an appraisal on both properties as not all their properties work for the implied value system they use. The current HELOC rate is 6% for an investment property.

Originally posted by @James Nelson:

Originally posted by @Ken Virzi:

I use PenFed for my investment HELOCs and they have no seasoning period at all. They do use appraisals to set the value though. I had a duplex that is renting for $1775 collectively just get appraised for $27k (which is way under value, but it is what it is, Cleveland appraisals range big time), they took that number and gave me 80% so a $21,600 HELOC.

 Ken, how long did your refi take with PenFed? I just started an account with them earlier this month because they are investor friendly. 

 I have done three with them. The main thing we had to wait on was the appraisal, but other then that it went pretty quick. As long as you have all your paper work together. I did not like working with Tim as I had to send things multiple times it seemed, so I asked for a different loan officer to work with and it was much better.

I agree that there is a big difference between C and D. I tend to look for bars on the windows and check out what kind of cars are on the street etc. Generally a C neighborhood I feel safe in , would live in myself, would park my car on the street, would take a walk in the evening etc. D I would not feel safe doing at least one of those things. C- even might take out one of those, C+ would make those things even more solid. 

I have a townhome in LA that is section 8. I feel good about it because she has to pay a small portion of her rent, but more importantly, there is a shortage of section 8 housing in LA, she knows that if she were to get kicked out she probably would have no place to go. She is also generally a good tenant.

Kira any updates? You should be will into your plan by now. I would love to know how its going!

Originally posted by @David Sanford:

I use C&F Mortgage. if they aren't in your area try going to local smaller banks. I have found them to be much easier and flexible to work with.

 What is their minimum purchase price?