All Forum Posts by: Kyle Wells

Hi Amelia, would you mind sharing your lender contact? I would love to get anything close to that low on my fourplex. 

Hi Adam, I used American Window and Door for replacing just over 40 windows on a four plex. It cost about $14,750 to replace all of the windows and wrap the outside of them (the trim around the windows was shot). $11k of that was actual window replacement and some light repairs and $3,750 for the window wrapping, which really left it looking much nicer. I'm not sure if they do siding though.

That is an absolutely great rate for non-owner occupied. Most places are between 4.5-5.5% right now. Is it a local lender or a nation wide lender? 

Personally, I would keep the 30-year amortization for the flexibility of it, you can always pay down extra principle to pay down the loan sooner.

Hi Jarret, I'm an out-of-state investor in the Kansas City area mainly focusing on BRRRR/value-add small multi-families. I would be happy to share my experiences if you want to connect.

I would have the conversation and try to gather information on their motivation for selling the property. Try to keep them talking and let them tell you as much info as you can gather. Take notes! I think there are three options for you assuming these properties are a good deal you want to pursue:

1. See if they are interested in seller financing (if they just don't want the headache of owning out of state, but still want the cash flow and maybe don't want to 1031 or tax a big tax hit all at once). 

2. Partner with another investor that can bring the financing to get the deal done.

3. If it's a good enough deal, wholesale to another investor. 

Good luck!

I am experiencing the same. I'm wondering if the lender was quoting as a primary residence vs. non-owner occupied investment property. 

Raj, do you have experience as an investor? If not, I think I would start out with BRRRR on small multi-families. That way you can recycle some of that cash on other deals and really grow your portfolio. You can also gain experience on smaller properties before venturing into larger deals. I've learned something from each of my investment properties that has sharpened my skillset as an investor for the next deal. If you are already experienced, I would look into value-add on a small apartment complex so again you can recycle some of the cash you're investing in order to continue growing your portfolio. Always make sure to keep plenty of reserves for the unexpected as well. Good luck!

Hi Joe, is this a duplex that you live in or purely an investment property? Assuming it's an investment property only, those rates may not hold true for your loan (I would make sure your lender knows it's an investment property if that is the case). The rates you quoted look more like primary residence rates. The spreads between primary and investment property loans can be very significant.

With that said, does the new principal balance include prepaid items such as interest, property taxes, and insurance? If so, I would back those out as you'd be paying those regardless of if you refinance. You want to look at the actual costs to refinance such as origination fees, discount points, appraisal fee, recording fee, title and escrow fee, etc. Then take those total costs divided by your monthly mortgage savings, which appears to be $76-85/month. That result will tell you how many months it would take to break even and fully recover the refinance costs. Everything after that is money back in your pocket. If you know with certainty that you will own the property past the break even point, I would certainly refinance. If you think it's unlikely, I wouldn't refinance. 

Hi Kevin, this is a great question. Every realtor will be different and it will depend on how busy they are. If you approached me to simply dual broker the deal to handle writing up the purchase and sales agreement and supporting disclosures through the closing process (this includes a lot of coordination between buyer's lender, inspector, appraiser, and title and escrow), I would consider a 2-3% commission (depending on price point). It's important to remember that commissions don't go 100% to the agent as the brokerage firm gets a portion, there's franchise fees for using the brokerage name, potentially local taxes, ongoing expenses for realtors, federal taxes, etc. Not every agent will find it worth their time to take a significant commission discount especially if they're doing a lot of business already. I would also ask yourself if you're missing out on a higher sales price by not hiring an real estate agent that would in return increase your net proceeds even while paying 5-6% in real estate commissions. Good agents will be able to generate more market exposure on your property. Hope this helps and good luck with the sale of your property!

Hi Devyn, I would recommend furnishing the common areas (dining room, living room, kitchen, etc.). However, I would probably not furnish the bedrooms that will be rented out. Most people will have their own bedroom furniture and would probably prefer their own stuff and not having to rent storage space potentially.