All Forum Posts by: Kyle Pittman

https://www.dropbox.com/s/k3nnwxgp9gai9w6/ORP%20-%2019%20property%20package.xlsx?dl=0

Send me your email address or connect with me so I can share the spreadsheets with you.

Selling a mix of single and multi family properties with a total of 54 units. Fully rented and performing.

This is a great portfolio that stays 100% occupied almost all the time. Very few turnovers. Each time we add a property to the portfolio we finish the remodel and they rent immediately if it wasn't rented before the work was completed.

These properties all received remodels within the past couple years. Many units have newer mechanicals and fresh flooring, paint, and bathroom/kitchen updates. This are not your average rental properties, they are nicely maintained and cared for.

Tenants are professionally screened with income requirements/verification and background checks. The tenants love working with the property manager and want to stay as is evidenced by the high occupancy rate.

Asking price - $2,850,000
Annual rent - $365,724
Annual NOI - $285,910

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● Asking Price - $3,970,000 

● Annual Rent - $546,180 (@ 100% Occupancy)

● Annual NOI - $394,720

● 3-4 bedroom homes. (2 two-bedroom homes) 

● Will be 95%-100% occupied by closing. 

● 25% Section 8 or subsidized rental vouchers and 75% market rate tenants 

● Professionally managed 

● All tenants are screened and must meet income qualifiers and background checks 

All remodeled within past 2 years. 

Just finishing the install of 20 brand new A/C units. Many of the homes have newer roofs, HVAC, and water heaters. Upgrades in most of the homes include 18" ceramic tile in kitchen and bathrooms, tile shower surrounds, new vanities and toilets, new cabinets with granite countertops. I would estimate that half of the properties have appliances that are new within the past 18 months. Many of the properties have new electrical panels and sewer stacks within the past 2 years. All properties are located in North County, Saint Louis within 10-15 minute drive of each other. Very easy to manage. 

Kyle Pittman

Uptown Realty LLC

Designated Realtor ® , Broker 

MO Lic#: 2016007425 

480-298-0637

Selling 19 single family rental properties. Almost all rented and will be 100% occupied by closing. Just a couple inspections remaining before moving the last couple of tenants in.

Asking price - $1,435,000
Annual income - $193,440
Annual NOI - $143,720 (including Management @ 7%)

The properties are mainly located in the Lee/Harvard area, Maple Heights, and Garfield Heights. 

The properties are all remodeled within the past 18 months. Most of the properties have new flooring, fresh paint, new kitchens with granite countertops and tile backsplashes. Newer bathrooms with new toilets, vanities and shower surrounds. The plumbing has been replaced in most of the homes and some have new sewer stacks. Most of the electrical panels are updated. The quality of the homes has made it very easy to attract good tenants, we usually have a hand full of prospects before we finish our remodels and rent them immediately.

All new written leases for 12-24 months. Professionally managed. All tenants are screened with income requirements/verification and background checks. 

Reply for a rent roll and any other information.

I am opening this discussion to see how others like myself get through the growing pains and regional banking differences.

First, about me, I am a part of a 3 member partnership. We buy single family homes with the intention to remodel, rent, and hold for long term cash-flow. Currently, we operate in Iowa, Missouri, and Ohio. 

The properties we purchase are typically $15,000-35,000. We do full gut & remodel so usually our costs are around 20-30k in remodeling expenses. As of right now, we buy about 5-7 houses a month in each location as the housing supply and current cash-on-hand allow.

Our portfolios in Iowa and Missouri are growing steadily with 50+ units in each location. We have been able to secure financing through local banks that are writing portfolio loans on each individual property. We typically get a loan with a 20yr amortization on a 5/1ARM at prime + 1. Appraisals tend to come back in the 50-70k range and we either get 80% LTV or one of the lenders caps us at 85% of cost. The banks require a personal guarantee and the number they like to see is our DSCR at 1.2 or higher which we have no issues with.

We are newer to the Ohio market but we have acquired 9 properties and we are looking for financing. Because of the laws pertaining to recourse on the loans many traditional banks are not interested in us for a variety of reasons (no local member, low end segment, single family homes, etc.)

This has us mainly looking at 2 different options. 

1. Private lenders/Hard Money. This is significantly more expensive but relatively easy. The only issue is getting loans under $50k because many of the private lenders have minimums. The other issue is sometimes the LTV isn't as high so we aren't able to pull as much capital out. All in all this is a viable option but not preferred.

2. Trying to capture the attention of a large national bank (US bank). In Missouri alone, we are around $2,000,000 in loan value and another $1,000,000 in Iowa. With our real estate plus bringing other business accounts to the bank I would expect that we might be approaching a threshold that starts becoming interesting to a large bank in their commercial lending or wealth management divisions.

With these two options being explored I am looking for more options that others have tried. I had a conversation with a lender that says he does direct mortgage lending for a Life Insurance company. How do you go about finding more of these types of lenders (assuming his strategy works for us). He says he can loan up to $1,500,000 to an entity which would be a huge opportunity for me to grow in Cleveland until I have a substantial portfolio there as well and can bring my loans to another bank similar to option 2 above.

Are there other options that we should explore? Are there any private lenders that don't like getting into transactional financing and small time hard money but might be interested to hold paper on portfolios like ours?

David, thanks for the response. I understand banks got burned on SFR deals during the downturn but I am shocked at how little interest there is now no matter who the borrower is. The bottom of most markets was about 6 years ago, I feel like it's time for the banks to start looking at the market data instead of remembering the stories we all dealt with.

There has to be someone out there that wants to make interest on these simple transactions. 

Most of the banks fear I would walk away from these properties if the market collapsed again but the truth is that I am buying them for cash flow and the rental market is stronger in a down turn. I have no desire to offload a property in good or bad markets as long as my renters are happy, I am happy.

I am buying rental properties in Saint Louis Missouri. Specifically, I target single family homes in North County. I am looking for financing options. My partners have properties in other states and have never had issues getting a local bank to do the financing but so far we haven't had much luck in Saint Louis. 

We purchase and renovate with our own cash and we are looking for a lender that can do a cash-out refinance.

We are looking for a 5 year term 20 year amortization. 5-6% interest. 80%LTV. We have strong financials and will give personal guarantees on the financing. With all this we are typically being told that because we do not have a local member that we can't get approval.

Has anyone had success finding lenders to work with out of state investors? 

Any strategies to find private funding?

Would long term hard money work?