All Forum Posts by: Nathan Spangler

The target PP is $500k, estimated rehab is $200k, ARV between $900-$950K. I did not factor in HML charges, so I suppose there is a bit more in terms of cost, but still a very healthy profit.

I have an opportunity for a flip that would require significant financing. All the hard money lenders I've talked to are saying they require purchase plus rehab to be 70% of ARV. This opportunity doesn't quite fit that, but the numbers still leave between $150k to $200k in profit.

Is there anybody with other options that deviate from the 70% guideline?

I am trying to buy my second rental property, and am running into issues with financing given my existing DTI. My first property is under my name, as is my primary residence. When I go to purchase a second rental property, my DTI is too high as a result of having two mortgages (even though the first rental property cash flows).

What are the best options for obtaining financing in a situation like this? Would doing a quit claim deed to an LLC remove that obligation from my personal DTI calculation?

Tell people what you are doing. I've been able to get two flip properties from people that knew I was looking for flip properties (friends, family friends, etc.) referring me to somebody they knew that had a property.  This also applies to private money. The three flips I've done were financed by people I knew that were looking for a hands-off investment and were happy to front the money. The key was making sure people were aware that I was looking for properties to flip. 

Hey BP,

My name is Nate and I live in SE Wisconsin with my wife and four kids. I've always been interested in real estate; my dad owns his a property management company, handling large multi-families for other investors, and owns around 20 doors himself, so I grew up with real estate being a focal point of the family.  I even added a real estate major during my undergrad.  Now I want to use it to take my family to the next level.

My dad and I have flipped two homes together and are currently working on our third (a pain of a cat house we had to tear down to studs). I also bought a side by side duplex in July for my first long term rental investment. That property was purchased for $164,500 with 25% down (HELOC on primary residence to obtain) and a 3.5% note. It currently rents for $2,025/month with monthly expenses (including the interest on my HELOC) around $1,400. I'm extremely anxious to find my second property, but don't have the capital right now.

I have a goal of an additional 8 doors in the next five years, which I think is extremely achievable if I can find a second property this year. After that, that income snowball should begin to make it a lot easier to put together down payments for a third, fourth, fifth, etc.  I'm just putting this out there for some accountability to keep pushing toward what I want.  I'm looking forward to learning from so many of you.