All Forum Posts by: Leo Gonzalez

I invest in Syracuse where the listing prices for decent small multifamily properties hovers around 100k give or take. In my current situation I only have the ability to do one deal per year so I'm exploring the idea of using a HML to buy properties quickly and at a deeper discount. As I understand it banks tend to look for 6 months of seasoning prior to refinancing. With the rent covering interest only payments on this kind of loan, I would only have to cover minimal repairs to get units rent ready (prior to getting them occupied if they are not already). I understand this is essentially the BRRRR strategy but with less of an emphasis on the Rehab portion.

Is this a sound strategy if I have the disposable income to cover vacancy periods & repairs?

Also has anyone been successful in making (65-70% of market value) offers that will be backed by HML?

I invest in upstate NY where the listing prices for decent small multifamily properties hovers around 100k give or take. In my current situation I only have the ability to do one deal per year so I'm exploring the idea of using a HML to buy properties quickly and at a deeper discount. As I understand it banks tend to look for 6 months of seasoning prior to refinancing. With the rent covering interest only payments on this kind of loan, I would only have to cover minimal repairs to get units rent ready (prior to getting them occupied if they are not already). I understand this is essentially the BRRRR strategy but with less of an emphasis on the Rehab portion.

Is this a sound strategy if I have the disposable income to cover vacancy periods & repairs? 

Also has anyone been successful in making (65-70% of market value) offers that will be backed by HML?

Demetria Graham House hacking is an amazing strategy to get started. I don't have affordable multifamilies in my neck of the woods so my first investment ended up being in Syracuse. Otherwise I definitely would have gone the house hacking route. Are you considering property management? If you're going to self-manage it's still good to consider for the future when you're running the numbers. And I will say running the numbers by far has been the most important aspect to me. The webinars here on BP do a great job of running through all the pieces to consider when looking at whether a property will be financially viable for your goals. In my honest opinion the calculators made the pro membership more than worth the money. Good luck and Happy Investing!

@Rita Oliva Happy to share! It was difficult to stay motivated during some of the start and stop pieces of the buying process. I would always come back to the success stories to help keep me focused.

@Jason Wade I would like to do a BRRRR in the future so Baltimore will definitely be an option since I'm not too far away. I'll have to develop a network of contacts in the area that I can trust. I'll also need a HML or a partner to JV and learn the ropes from buy to refinance.

Thanks @David Zuber I was referred to Alexis Bliss with Keller Williams Realty. There was a lot I didn't know about the buying process and she walked me through it beginning to end which was really helpful. I would definitely work with her again.

Thanks @Will Chamberlin This purchase is on the south side of the city between I-81 and route 11. It's a quick drive to the University although I would ideally like to rent to families rather than students.

Thanks @Ozzy Sirimsi I'm trying to keep up the momentum!

Thanks @Eric H. I'm definitely adding that book to my reading list. I can set myself up for failure if I don't take the tenant screening seriously so the more knowledge I have to do that the better. Thank you very much!

Thanks @James Maradits that's always the hardest part. Getting up and starting on the actions that will help you reach your goals.