All Forum Posts by: Lee Huffman

I do the same with vacant property insurance @Cindy Veit.  I pay the 12 month premium, then get refunded for anything we don't use, with a minimum of 3 months.  Much cheaper and more flexible than continually getting new 3 month policies.

@Cindy Veit, great job on the rehab.  The house looks fantastic.

I have a few questions on the numbers resulting in profit of $23,500, which would equate to total non-rehab costs of $11,500.  $7000 would be 6% commission, plus another $3000 on closing costs on buy and sell.  That leaves $1500 for vacant property insurance (usually $400-700), carrying costs on capital, utilities, and any other misc costs.

Additionally, our experience in the Ft Bragg area is that buyers generally require ~$4500 in seller's assistance on closing costs.

I've completed a handful of rehabs for sale and rent in Fayetteville and am always looking to learn from others.  Your feedback would be much appreciated!

I'll send you an email @Cedric Stout

This loan program caps out at 10 mortgages (including your personal residence), so I'm putting all loans in my name first, then we'll do 10 more in my wife's name, and 10 more in my partner's name for a total of 30 potential mortgages.

@Bob E. and @Bill Gulley, I've found a lender that will do fixed 30 year loans using commercial underwriting. It is obviously better to use this delayed financing route, but once you cap out, this is a good option. They base it on 70% max DTI ratio of PITI vs Gross Rental Income of the property. A recent example I saw provided for 65% LTV cash-out after 90 days (not sure if it is owned for 90 days or tenant occupied for 90 days). The rates quoted ranged from 5.5% to 7.5% based on LTV, DTI, and your credit score. The loans will sit on your LLC credit report, not your personal... although you will still get hit with the inquiry on your personal credit.

We've used "delayed financing" three times this year for cash purchase, rehab, install tenant, and cash out refinance to start the cycle again.  It has worked beautifully, even though there were some hiccups the first time around.

Biggest issue for me was the "financial colonoscopy" that the banks do on my bank statements questioning what every deposit was and where the money came from.  But, that is the case whether you're doing delayed financing or a traditional home purchase.  This is just the current state of bank lending.

Our first time was borrowing $70k on a house that appraised for $100k, then $75k on a house worth $109k, and now $60k on a house in the $90-$100k range (still waiting for appraisal to be done).

I would highly recommend this to other rental investors.  Much cheaper rates than lenders who "commercially underwrite" your rentals... approx 4.75% (higher rate to offset refi costs) this way vs. the 5.5-7.5% I've been quoted on the commercial deals.

If anyone has any questions, I'll gladly share my experiences.

Welcome @Chris Moyd.  Good luck as you start the journey towards being a full-time landlord!

We have been investing in the Fayetteville market for almost 10 years.  It has been good to us.

Welcome @William Brown.  My parameters are very similar to @Cindy Veit.  We buy for both flips and rentals.

It would be great to network with you.  Please send me an email and let's talk sometime.

Good luck @Tomori Moore. I haven't attended any local groups, but I think there are some local meetups and there's always the REIA to get involved with. They would be great resources, along with BP of course, to help you get started.

@Tomori Moore, are you looking to flip, looking to learn, or looking to invest?

Welcome @Troy W..  My partner and I have been investing more and more in Fayetteville - rentals and flips.  Welcome to the community.