All Forum Posts by: Matthew Hutchinson

Everyone - thanks for all the information. This is really a great start for me to go down the path of DSCR.

Ty - really great list of info.  Really appreciate it.

Matt

Hi,

I am looking to fund 7 units. I have plenty of experience with 1-4 units but have never done more than 4. I am looking into what type of financing I would be able to get and what type of documentation I would need. I do know about DSCR but have never done any of DSCR financing or put together any type of package for that type of financing. Any help would be greatly appreciated.

Thanks

Matt

Hi Astante,

I apologize for not getting back to you sooner.  Here are the books I would recommend so that you know your numbers cold!

Real Estate by the Numbers - can pick up here on BiggerPockets

What Every Real Estate Investor Needs to Know About Cash Flow... And 36 Other Key Financial

Then if you are looking for rehab and flipping - j Scott books are a must.

Hope that helps and good luck!

Matt

Hi Lenny,

Dang man - you got a lot going on.  Good for you!

Continue you reading the BRRRR book by David Greene - thats where I started. I would suggest that once you are done reading that book - give it about a week and read it again. This will help ingrain those ideas into your brain. Watch as many Brandon Turner and David Greene videos as you can on BRRRR. I would also suggest that you find a meetup in your area of real estate investors that actually does BRRRR deals and will take you on a walk thru of one of their deals. This will give you the opportunity to ask questions and get live feedback right there on the spot.

Once you have done the above - then you just have to do it. Try to find a BRRRR multifamily deal and live in one unit and house hack it then rent the other units out. Then as people move out do the exact same thing to those units.

You can get in with an FHA loan at 3.5% or a first time home buyer program. Then like the title say REPEAT!

Good Luck

Hi Greg,

I just want to reiterate what Marcus and Nicholas have said.

If you are really interested in getting into RE investing and small multifamily then you don't need a course or mentor.  You would be better off watching some of the old webinars here on BP and then reading a few books.  Any of the books from Brandon Turner here on BP would be a good start and then any book on understanding the numbers.  If you don't know your numbers you will never have a good investment.

Start there and if after doing some reading, talking to people here, and some meetups.  If after that you still don't understand investing enough then I would say find a mentor.  A mentor will tell you to read the books anyway so you understand the terminology they are using.

Good Luck 

Hi Portia,

I would just reiterate what Niyi said.  Before you jump into some type of mentorship (that they usually want you to pay for), I would start doing some meetups in your area with local real estate investors.  Sometimes these are the best way to learn.

You can try - meetup.com or eventbrite.com

Good Luck 

Hi Roy,

I did something very similar. I took out a HELCO on my primary - I understand not cash flowing - could have taken out a lot more but only took 50%. With that money - I am using it to invest using the BRRRR method. This allows me to seed the property for 6-12month, then refi, and pay the full amount of the HELCO back in one payment. This allows my portfolio to grow, keeps rents coming in, and keep my costs low.

Looking for a recommendation for contractors in the Richmond.  I have some unit rehabs that need to be done and looking for a good contractor to work with.  Appreciate any help that is provided.

Thanks

Hi Amanda,

If they are trouble tenant then you should probably provide them whatever the notice period is in the current lease and just have them move out.  You would need to notify them in writing that you will not be expending their lease and they will not be transitioning to a month-to-month lease.  I would send it certified so they have to sign for it.  This way they can't claim ignorance.

I would also require a move out inspection and make it the day after they are supposed to be moved out.  This way they can't claim they have been in the house long enough to be domiciled - this is for squatters.  This will allow you to get the sheriff involved immediately.

If you are already past the notice period then you will probably have to follow whatever state laws are in place for the notification period and possibly the eviction process.

Hi Brady,

If you are looking at it from just from a dollars and cents perspective then you should keep the tenant.  I am going to guess that you have checked the comps for the neighborhood the house is in and you have found other houses for rent at the market rate?

If the rent payment covers your mortgage and you have a good tenant, why would you get rid of them to take on the expense of unit turnover, because you will have to do one, and the 5% vacancy loss just to increase your rent $150 per month?

I would also find out from your friend if they have increased the rent since that tenant has been in the house.  Instead of getting rid of of the tenant - increase the rent slowly.  At lease renewal increase the rent $50 per month and then the same the following years until it is at market rate and more than likely the tenant will leave on their own and you will have still gotten the rent for that entire time until they moved out and built up your reserves for that property.