All Forum Posts by: Kiera Underwood

@Kiet Ho lending is so inexpensive right now that I feel like you could get further utilizing lending. That said, if you're shopping in a really competitive market doing cash offers may be what wins your contracts. Are you shopping in Alabama? 

@Patrick Flanagan I'm OKC all the way! Like most markets inventory is tough and you've got to be aggressive to lock something down right now. I'm a big fan of all off-market stuff for that reason. For reference in this market I'm seeing A class duplexes for ~5% caps and I'm aware of a remodeled 12 plex property in a path of progress area for ~6% cap. So, the numbers aren't where they were pre-corona but they're not bad especially when you compare price point to other markets. 

@Brian M. why not utilize conventional if you're doing under 4 units. I'd try to get away with house hacking it if possible. Bringing only 5% down (plus what you pay over asking/appraisal in order to lock down a deal in this crazy seller's market) allows you to buy another sooner! Is that an option at all? 

@Brian M. I second what @Kenneth Garrett said. Reporting the income of your rentals should offset debt to income. If you have issues with that commercial is the way to go. I've got lenders in OKC that are helpful in projecting/advising around what you'll need income wise to offset. What market are you in? 

@Daivic Vora I'd be happy to overview multifamily for you in OKC. Is it a market you've looked into at all? 

@John Moore you're wanting to do 3 conventional loans? I'm a little late to this conversation, if you've got updates please share! 

@Wes Sherwood thank you for the shoutout! I loved getting to know you and your wife. I want to hear about the other cities you checked out. I'll give you a call soon! 

@Kaden Dunlevy Happy to help you navigate as you explore what investing in OKC looks like. I work in investment real estate and also invest myself. It's not necessary to work in it to be successful, but it's an exciting career path. Shoot over any questions you have! Good luck! 

Hey Gary! Here's my 2 cents on Section 8. I am speaking from experience in the Oklahoma City market so this could differ from where you're looking. 

What I like:1. The government pays a portion or all of the rent. That’s a guaranteed payment every month. 2. If a section 8 tenant doesn’t pay they are at risk for losing their assistance. 3. I can’t speak for other states but Oklahoma is VERY landlord-friendly, even with section 8. If tenants don’t pay we are able to evict in ~45 days for under $500. 4. For 4 and 5 bedroom homes, the government is willing to pay higher than market rent rates for section 8 tenants. That said a tenant often pays a portion of their rent, so you must update cosmetics etc to make it worth the applicant's extra payment to you to actually get applicants at a higher rate. You also have to prove to section 8 that the property is worthy of higher payment. 5. We see section 8 tenants have longer stays at properties. It’s not across the board, but it is common. 

 What do be aware of: 1. Your first 3 months of rent payment will be delayed after you take over ownership. This is providing time for the agency to process the change in ownership in their end. You will be paid all back pay. 2. Your property manager should handle all correspondence/paperwork/leasing with section 8. No extra burden should come to you personally. 3. Once a property is qualified for section 8 it does not mean that you can ONLY lease to section 8 tenants. At turnover, you can market to section 8, non-section 8 in conjunction. Or if you no longer want to market to section 8 tenants, that’s fine 4. If you have a section 8 tenant in place, once a year section 8 requires an inspection and repair of anything they deem deficient. Your PM should schedule this and also schedule any repairs and ensure that you stay within the guidelines. The repair requests are sometimes a bit nitpicky, but if a section 8 tenant has been in place for some time we are very rarely surprised by what comes up on these requests. The requests are a bit more expensive if it’s the first time you’re getting approved by section 8. 

The truth is that section 8 IS more work, but your PM should absorb that. I know of property managers that will advise against section 8 and I wonder how much of that comes from them wanting to avoid the process because they've not developed systems to effectively handle the process. 

Ah understood. I'm typically working with very straightforward LLC partnerships, commercial or conventional lending. If someone wanted to set something outside of the financing partnership norm I'd likely refer to an attorney.