All Forum Posts by: Kevin White

@Theo Z.

 I think interest rates are bound to go up.  When? How Quickly? are the questions and I really don't know when and I think is just speculation.  I think in this situation it depends on what you want most out of the deal.  Are you doing it for value add and to refinance or sell? Are you buying for cash flow now? or consistent cash flow over time?  I think the two options are similar and are not too far off from each other and depends on your goal for yourself and the property. I personally buy and hold (long term) and prefer a more consistent rate to analyze my numbers. Now if I was doing a value add and expected a quicker exit I may take a smaller rate now to be able to reinvest some of that into the unit.

I think once you figure out your long plan I think you will lean towards a certain option but both are solid.

@Account Closed

Awesome!   I actually did not know that.  That's great info

Awesome! Thanks Anthony

Do anyone know a good contractor/plumber in the Pittsburgh, PA area. One that is able to fix leaks in shower/bath plumbing especially.

Let me know if you do.

Thanks

@Prachel C. Around one of the places I service for work we have a prison. Next to it is a large apartment building (40+ units) and a manor for assistant living.  Both seem to be doing well.  This is in a much smaller area than Atlanta where the population is under 20k.  The prison doesn't seem to affect that unit or the manor, however there aren't any single family houses around or properties that are boarded up or appear vacant. I think your best to ask around and see how the rental market is right there by the prison.  I personally do not have a problem staying next to a cemetery or prison or any other place if I like the unit and feel safe However my girlfriend has shut any of those places out our options list.  I think most women in the relationship have a big say in where to live and if they aren't pleased with living next to a prison I think it may be hard for you to get it rented, especially once she sees the other boarded up houses and area.

Very opinionated answer but I believe it comes down to the demand of renters in that specific area and how it will be in the future.

Do any of you have any experiences of letting a tenant stay rent free or reduce rent in exchange for fix up services?

@Boyd McClean  It would be something I could pay off overtime.  3-5 years preferably.

@Ron Flatt

Thanks, that does make a lot of sense.  of the 5 units 3 are rent able, 1 is currently rented. Each unit needs work to get rents to market rents. 2 of units rented would cover expenses per month so I could use profit from rest to continue to put back into the property. That would definitely work overtime but my only thought is how could I speed up the process.  If not able to connect with outside money, putting cash flow back in the property to fix is what I would do.

@Account Closed

Lol, no this owner rates are a tad bit better than the mob.  Wouldn't want to refinance. Maybe in the future but not know as the rates and terms the bank will give wouldn't be as good as the seller finance and I am buying for the strong cashflow potential.  I can definitely check into a line of credit though.  Thanks

Hey guys,

I am an investor that focuses on buy and hold, buy fix and hold, etc properties with good cash flow.  I am trying to figure out a way to fund rehab cost if I am not getting bank financing or hard money loan.

So this is the scenario:

5 unit apartment building- Will be owner financed with a 20% down payment from me.

I am needing about 20k for renovations.

I am trying to explore different options to get this money as I am not fixing the property to sell more so to hold.  I know that if I get from a private lender for short period of time and try to refinance that is one option, but what if I do not want to refinance.  Is there an avenue to get a longer term loan for the renovation cost?  What others ways have you all done deals like this

Thanks for any help or thoughts