All Forum Posts by: Lance Lvovsky

@Blake C. Thank you for your input. Good point on the vacancy... things come up and I do understand it is impossible to avoid vacancy.

Regarding splitting it 3 ways, I simply don't have the money. Also, my "partners" are family. Yes, I know many people don't find success investing with family but I won't have that issue and we are close with one another and have done it before.

Also, I would love to find a deal where I can put 20-30% down and finance the rest, but it would be very difficult (as far as I know) for me to get a mortgage. As a recent college grad, I don't have the minimum 2 years employment most banks are looking for. Do you have any  thoughts on this?

@Brandon Turner This property is in decent condition and I expect the money set aside for repairs to clean it up a good bit.

I will probably go ahead with this purchase. The housing market in South Florida is going up every month and it is tough to come by good deals nowadays. 

@Brandon Turner thanks for the detailed response!

This would be an all cash deal. Also, not sure if it matters but the deal would be split 3 ways evenly. (i.e. there would be 3 owners @ 33.3% each)

I adjusted the numbers to include insurance and vacancy (at 5%). I am not sure what a good reserves number would be? Anyways, here is the spreadsheet with the updates values:

2 bedroom 2 bathroom unit approx 875 square feet. In pompano beach Florida.

Below is a picture of the financial breakdown. According to Zillow, this unit was sold in Jan 2005 for $135k. Built in 1981. Unit is in okay condition. I estimate repairs are between 5-8K. This would be an all cash deal. 

Any thoughts?

@Chris Duzan I am in a similar situation like yourself. I just graduated with my bachelors. Currently interning at a large firm and looking to get a loan. I have 1 investment property but looking to get a 2nd one. However, I will need some type of financing and FHA loan will probably have the lowest interest rates, thus I would prefer to go the conventional mortgage route over hard money.

I read somewhere that contacting community banks could be an option as they tend to be more lenient. I haven't tried this personally, but perhaps someone else can chime in.

Thank you everyone for replying. So would anyone say that I should not try contacting banks? I feel like some banks may be more lenient (like a comm bank) but I wouldn't be sure as to what is the best way to approach them.

Thanks for the info! I do have self-employment history but it is mainly from before college (and during my teenage years). So I don't know whether or not that will have an effect.

I do have some pay stubs (w-2?) that I can show from an internship last summer. Plus, I am doing an 8 week internship this summer which will show pay stubs.

Hi all,

I am curious to see what financing options I have. I recently graduated university, so I do not have much employment history. I currently have 1 property (this October will be 2 years) but am looking into getting another property. I have read about financing options and such on this website. I suppose I can contact community banks and see if they would be willing to give me a loan. I doubt any of the bigger banks (like a Chase) would give me a mortgage, right?

On a property between 50-70K, I can probably put around 20-30% down, if that makes a difference. In an ideal scenario, my rental income per month would be paying off my mortgage/loan as well. (I would have no other choice as I will be going to grad school and won't have steady income for a while). Hence, if I can have my property paying off the loan and maybe even cash flowing a bit each month, that would be perfect.

So any ideas? I realize hard money lenders would probably lend, but most likely it would be at very high rates. 

I don't know how common of a scenario this is, but looking to hear everyone's thoughts!

Thanks in advance! 

Thank you @Brie Schmidt for the help!

Thanks Brandon and Brianna for sharing! I will play around with the spreadsheet and calculator and report back. quick question- I would assume that the security deposit should not be included in any calculations?