All Forum Posts by: Matthew John

Hey guys, 

Over the past month I've purchased 2 properties, one SFH for me to live in and one Duplex where I can rent out both units.

I financed both properties through Chase. The SFH I had to had my mother cosign since I do not have seasoned income and the other was purchased in my girlfriend's name who works part time.

Both of my properties were great deals & I'm seeking to do more. Problem is, I don't have money left to keep funding these myself. 

I do, however, have access to private money that would be interested in working together alongside me. 

I'm seeking some clarity on how I can continue to build up my rental portfolio while working with a private money lender. 

My from understanding, I get enough money from them to fund the deal + rehab, then I cash out refinance and pull the money back out to pay back the private lender?

Would a bank or traditional lender work with me even though I don't have seasoned income?

I'm confused on how you go from getting money from the private lender to returning their money + interest and getting into a regular loan. 

If you have experience with this, would you mind walking me through some of the steps?

Would a bank or lender allow me to cash out refinance even if I don't have seasoned income?

@Andrew Frowiss There are not many houses on the market for rent in my area. Most are about $900, but are in a worse area and don't look as nice. Many people are asking to schedule to see it and even want to put applications in before so! I am thinking a minimum 2 year lease at $1000 and possibly adding internet for both units to share.

@Allan Calderon wow I didn't think of that! Great idea!!! Thank you for that. What do you think of installing internet and using that as leverage? I can get $25/30 more from the top unit and also might be able to justify the increase in the bottom unit from $900 to $1000

@Matthew John not sure why my post becomes a big blog of text when I submit it. I formatted this with multiple spaces so it was easier to read. Sorry guys :( Hope I can get some feedback

Hey guys! I am a new investor and just purchased my first Duplex in Metro Detroit. Currently the top unit is leased for 10 more months at $550 and $25 for water (I pay for water) and tenant pays heat/electric. The bottom unit is still occupied by the previous owner who is moving out in about 10 days. I was told my the previous owner & by my real estate agent that the bottom unit would rent for about $795. With my $865 PITI, I'd cash flow about $430ish before factoring in expenses. So today I was getting anxious and just wanted to put some feelers out in the market so I listed the property for rent even though I can't do showings until the current owner moves out. I noticed other similar houses were going for more and looked worse. I listed it for $900, $105 higher than the suggested price. In about 5 hours, I had received 60 messages from people asking about the property! I told everyone I can't show it for another 10 days or so and it wouldn't be ready till the end of the month. My question is... Should I raise the rent a little more to bump up my potential cash flow? Has anyone had success doing this? Since the upper unit tenant has been using the previous owner's wifi and doesn't have internet, I was thinking of having internet installed for $40/m in the bottom unit. I could then charge the upper unit tenant $25-$30/m for wifi and that might be the extra incentive to charge $1000 for the bottom unit. Curious to get everyone's thoughts! Thank you

@Chris Mason Appreciate the honesty! Summit was recommended by my Agent & I'm currently working with them on another property I'm purchasing. Their customer service has been 10x better than Huntington. 

Their rates are a bit higher and they don't have the same incentives (paying for closing costs), but from what I'm hearing that is totally unrealistic and Huntington will not follow through. 

@Jeff Dulla That link didn't work, but I agree. I don't want to give this lender the reward when they clearly fail at their job. 

It's hard to beat the interest rate + offering to pay closing costs, though. 

@Jeff Dulla http://www.radian.biz/servlet/servlet.FileDownload...

Looks like Home Possible isn't Possible with Multi family houses!

@Jeff Dulla I have gone through the process (up until the Appraisal) with 1 other Lender thus far. This was my backup choice, but they offer a much less desirable rate. 

5% down, 5.75% interest rate, and I pay 100% of closing costs....not worth it. 

Seems like I have better chances of finding a needle in a haystack over a good lender!  

I also think I'm too far along in the process to turn around and look elsewhere. 

@Jeff Dulla @Harjeet Bhatti Thanks! I will ask my lender about this. What is the difference of the Home Possible vs Home Ready program?