All Forum Posts by: Mehran K.

@Brie Schmidt Thanks for the @mention! I just sold my house last month (2015 goal) and did acquire a few properties with different partners. I couldn't help myself and bought 4 duplexes as a personal investment though. Just now getting that stabilized. 

I am now looking into a new lender and am looking at options for refinancing all my commercial loans (with balloons) into 30 year fixed rate mortgages at a higher rate. After that I'm planning on some more purchases in the winter or early next year.

Hope things are going well on your end! 

It could be an issue for some lenders. If you present yourself professionally, have a plan, have a good deal, and have a good financial profile, that will help. 

I'd start by calling around and seeing who does commercial/portfolio loans on residential properties, what their terms are, and have all your questions answered.

By strategy you mean by an all cash project (purchase+rehab+lease to tenant) and then refinance? This will depend on your lender. Some lenders won't have any seasoning requirements for their commercial/portfolio loans and will do the cash-out-refi (COF) on an appraisal on any day. Some lenders will want to wait 6 months to a year before they'll allow you to COF based on the new appraisal amount.

The last lender I worked with also wanted to see that the property was leased out after the rehab (property was "performing").  Hope that helps!

Update: I sold my primary residence last month, paying off my HELOC and pulling out the remaining equity, like I was planning on last November :)

Doubt this will ever come to be, but who knows these days :)

Brief Article

If I remember correctly, they want 2 years landlord experience for rental income to be considered for a non owner occupied rental purchase. If it's going to be owner-occupied, I think they WILL consider the rent for the other units that you won't be occupying. They have their own metrics for what % of market rent they'll use as cashflow/expenses. You'll likely need to produce current leases if there are tenants their already, or they have a form to fill out for an agent to give their opinion on market rent of each unit.

This is all for conventional/fha financing. I haven't done a conventional loan in over 2 years and this could've changed within that time.

@Larita Jolly

 Short answer is NO, don't use a hard money lender for a rental. If you can't afford the 20% down, one option is to find a duplex that you can buy as an owner occupied property (you live in one side). You can probably get away with a 5% down payment going that route. 

As far as the order of your process, you probably can't pick the best property unless you get a good picture of the costs to get each property up to rental shape. You may be able to hire a contractor for a small amount of money to visit certain properties and give you bids for them. Eventually you'll get a 

I'd say don't worry about the 5 properties yet. You should be focused on getting the first one done right, the rest will come later.

I would still ask for it at some point prior to acceptance. If everything checks out online with their application, you could make it part of them coming to sign the final paperwork. If you want it sooner than that, you could say "So everything checked out with your online application. I'll just need you to come by so I can take a copy of your drivers license and go over a few things.. etc."

Hey welcome to the site @James Baker. Glad to have you here!

What a great feature, thanks guys!

Jon, thanks so much for that, I like this mentality and it's good to have both options to mix things up. That's sweet that you hit your goal to be free by 34, I'm turning 33 in a couple months and am working my way there :)