All Forum Posts by: Matt McMains

@Patrick Sikorski

Different lenders have different guidelines.  I work with a few that will see this as a Delayed Purchase.  You buy with cash, then I can submit the loan the next day for, essentially, a cash out refinance that follows purchase guidelines... Sounds confusing, but I have several investors I work with whom do this regularly.  They get the benefit of faster closings and more offers accepted.  The closing costs you will incur from a cash purchase is title fees mostly.  Very minor compared to loan fees.  

The last one I closed on a few weeks ago, investor paid $415,000 cash.  We submitted the loan the next day for delayed purchase.  We will need an appraisal.  The appraisal came back at $425,000 (no rehab was done), and the lender was able to lend 80% ($340,000) of the appraised value... not the PURCHASE PRICE.  Very very very few lenders will do this.

On the flip side, I have investors who also buy cash, use their own cash to rehab, then cash out refi immediately as well.  Finding the right broker/lender combo is key to making this approach not only cost effective, but efficient.

Cheers!

@Devon Yates Rentredi is what I use. Great for background checks, credit checks and also you can collect rent direct!

I've been using RentRedi.Com.  I like it.  Great customization on setting up rent, managing properties, assigning rental income to different bank accounts, etc.

Airbnb, VRBO and other STR platforms are performing very well with very healthy profit margins. I run an STR company in Orange and Los Angeles Counties and my STR's are performing quite well. I'm not sure where you heard your information, but it is clearly from a person who either has no experience in STR's, or if they had an STR they ran it poorly or the STR was situated in a bad location.