All Forum Posts by: Nathan Blumanhourst

@Brad Franks In my opinion if you can take equity from a poorly performing rental and invest that into multiple high performing rentals, you definitely should. I plan on doing that in the near future with one of our underperforming properties.

Best of luck!

Ask lots of questions. Never assume anything. If someone wants your business they will answer the questions that you have. Be willing to be the newbie who doesn't always have the answer and don't feel embarrassed to ask. Its your business so get the answers you need.

Do banks/lenders offer low down payment options on primary residence even if it is not your first home? I know there is a the FHA and state grant programs, but I'm curious if there are options for 5% or even 10% down even though you aren't a first time home buyer?

Thanks

The reason the BRRRR has the rent before the refinance is so that you can show the bank/lender that you now have more income. If you did not have a renter in the unit you debt would be up but your income would not be.

And the 1% rule is from the value of the property. So if you think the ARV of the home is $150,000 then you should shoot for rent somewhere close to $1,500. For example if you buy a $100,000 property and put 50% down you would still rent it for $1000 even though you only have a loan for $50,000. Hope that helps.

So here's the short story of my first deal. My wife and I walk into the realtors office and we look at some duplexes. My wife finds one she likes and we tell the Realtor we want to buy it. She gives us a business card for a local lender and tells us to try her. We hop online and put in an application and receive a call the next day. We show up at her office sign some papers, give our earnest money and next thing I know we are scheduling a time to close! Easiest deal I think I will ever do. We walk away from the closing table with $600 in our hand which buys some appliances for our new home/rental. At the time I was 19 and too naive to ask lots of questions but I became curious as to why we were able to walk away with cash from the closing table. I began to look through all of our paper work and I discovered that the state of Kansas paid a 4% down payment for us!!

It turns out that the State of Kansas has a Mortgage Assistance program where they will grant you up to 5% of a down payment and from what I can tell there is no time period for which you are required to live in the property. So to any newbies in the State of Kansas ask your lender, or go online to https://kshap.org/ and look for one!

Pretty sweet deal, eh?

@Derek Cheng I know some banks will structure a HELOC so you have a 10 year draw period where they only require interest payments and then a 15 repayment period, which more or less means whatever hasn't been payed becomes a traditional loan that is amortized over the 15 years.

Sorry for the uproar. I should have had more info before asking. So I called and asked and more or less the bank uses county value for primary residences and not for any kind of commercial or non-owner occupied.

So I know a bank I worked for would use the county value of a property unless the borrower requested an actual appraisal or the bank thought the appraisal was too far off. Is that pretty standard or do most banks require a true appraisal? Or are county tax values even a decent metric for comparing properties?

Investors in Wichita, KS and surrounding area,

Had anyone worked with a Greg and Kim doing seller finance. I found a handful of deals listed on craigslist that list these two as the contact info and was wondering if anyone has done a deal with them? I message them and got one reply but nothing beyond that.

Greg and Kim. If you happen to be on BP and see this reach out me as I am interested in some of your deals!

Thanks Nathan!

Long story short. My tenant broke up with his girlfriend and she left her car in the driveway and it had sat there for 4 months. The car has a interlock (breathalyzer). Is there anything that I can do with the car? Is it unclaimed property or do I just have to get my tenant to get his ex to come retrieve it? Thanks for the help!