All Forum Posts by: Michael M.

Hello BP Community,

I am selling my fourplex, which is owned 100% by me in my personal name. The property I am buying (with a partner) is a 20 unit apartment in a low-cost state and has a commercial Fannie Mae loan that I want to assume. For 1031 purposes, do my partner and I need to buy as a TIC? Will Fannie Mae allow a TIC to be the borrower? The current borrower is an LLC.

Thank you!

Long time lurker

Great, thank you both!

Hi all,

I have a portfolio of 8 properties (SFRs and 2-plex/4-plexes, each with a 30-year fixed mortgage).  In aggregate the portfolio is at ~50-60% loan-to-value and fully stabilized, with minimal vacancies. Everything is in the Carolinas and Texas.  

As I continue to scale, I have heard I will hit a limit at 10 mortgages due to traditional lending guidelines.

Does anyone have thoughts on how they would recommend financing growth beyond that point? 

One suggestion I have heard is that I could use some of my equity to 1031 exchange into bigger multifamily properties, but I would rather not sell any of my holdings.  

What about portfolio loans with a local bank or something like CoreVest? 

What's stopping me is that the rates on some of the rental portfolio loans I've seen are much worse than traditional fannie / freddie backed mortgages. I was thinking I'd get 10 conventional mortgages due to favorable rates, and then after I hit the limit, use a portfolio lender. 

Would be very grateful for any of your thoughts or suggestions. Thank you!

@Will Pritchett Thank you very much for the insight! Extremely extremely helpful.

To be honest I can’t recall what time of year I noticed these extended vacancy trends. I’ve had one of the properties for about a year and the other for 6 months — my observations come from casually browsing Zillow from time to time in order to get a general read on market conditions. I also have properties in other markets so while Zillow not a perfect tool, the vacancy trends stood out to me when I compared San Antonio to those other markets. 

Another data point — when I bought my first San Antonio property in August 2018 I had a very difficult time getting any interested tenants at $1300 / mo. As soon as I dropped to $1200 it was like night and day and my property manager was able to get it rented very quickly. Of course there are a lot of factors that go into this but I agree that ~$1300 / mo seems to be a bright line where you start to get more turnover / more competition etc. 

Hi everyone, long time BP reader and first time poster! 

I know a lot of people here have rentals in NW San Antonio. Would be great to get people’s thoughts on rent growth in the next 5-10 years.

I currently own two buy-and-hold 3/2 SFR properties in northwest San Antonio, inside the 1604 loop near Bandera road. I've been seeing a large number of available rentals on Zillow similar to my own houses, all in the ~$1200-1400 / mo price range. Some of them are sitting on the market for a month+ ; vacancy times appear especially long once you get above ~$1300 / mo.

Does anyone else feel there is a bit of oversupply of rental properties? Do you think the economy, wage growth, tenant base will support higher rents in the next couple of years?

Would love to get your thoughts!