All Forum Posts by: Sam S.

Gotcha, thanks for the replies.  Any recommendations?

That would be flexible based on the property.  If all I can qualify for is a $100k condo/townhome, then I'd like to not go above 5%, but if I can get into a multi, I could do more.

Hello,

Looking to purchase an owner - occupy multifamily in Northern Colorado (where I live and work).  Probably in Greeley, CO, in the $180-210k range.   Will be my first house.

Need a lender that works well with self-employed people (maybe a portfolio lender?)  Business is taking off this year, and I'm tracking to hit significantly higher income numbers for 2015.   Currently renting month-to-month Credit and income stats below:

Credit: Low 700's

2014 Income: $40k

Net Worth: appx $100k

Monthly Recurring Debt: Car Loan ($400) Student Loan ($250)

Any recommendations would be greatly appreciated!

I would explore portfolio lenders in your area.  We're doing buy and holds and flips in the Des Moines, IA metro with a portfolio lender at 10% down.  They keep and service all their loans, so we can get into even pretty distressed properties without major headaches.  

@Joel Owens

I pay $1000 for a 2 bed 2 bath. About 7 blocks from my potential property.

I agree with what you said about holding onto the inheritance for business use. The total inheritance was in the neighborhood of 100k, so I'll have plenty left over for business use, should I so decide. Fact of the matter is, the point we're at now, I don't see much good to come from dumping 50k into the business. We could really ramp up marketing, hire a few more guys, get 2-3 more crews going, but I don't think we have the infrastructure to support that right now. We're still expanding, but I've found that we can do that with the profit we're already making, and I'm comfortable with the salary I take right now.

Thanks everyone for advice. It's probably my fault this thread got a little convoluted. I initially was talking about my financing. Then I began talking about a property I'm considering putting an offer on. The property is a 4 bed, 2 bath listed at 230k. Since it does have 4 qualifying bedrooms, I could potentially rent it out for more than $1500.

@Mark Furguson:

The property is going to be my primary residence. I will keep it as a rental upon moving, ideally re-financing to improve cash-flow. I like looking at it from a rental perspective. I agree that purchasing rentals in Fort Collins is probably not a great idea. Prices are definitely high. However, if I refinance in 2 years at 6% for a 30 year term, payment would be $1070 + $150(taxes + insurance) = 1220. Even if I could only rent it for $1,500, that's cash-flow that I can live with.

@Aaron Montague :

No I cannot build in my price range, much less in my price range and in my target area.

There aren't any multi families for under 400k in this town, and there haven't been for a while. That was definitely my first choice though.

I said I could get $1500 for rent. There aren't any properties in that price range anywhere near campus. Even in the town as a whole, there aren't any houses in that price range that aren't manufactured homes. Maybe your 100 multiple role would work in Greeley, maybe even in Boulder, it's just not supported here.

Sorry - should have clarified. The house will be for me to live in, for 1-2 years, at which point I should be able to qualify for traditional financing, and I'll move into a different property: wash, rinse, repeat. I don't need to settle down for a few years.

Business is solid. We're on pace to increase revenues by 2.5, and profits by a much higher multiple.

Financing update: rate is 5.75

As for right now, the house would rent for $1500 on the low side, maybe $1550-$1600. Many brokers and property managers have advised me to use about $500/bedroom in Fort Collins, perhaps a bit higher around the college. So, at $1500, I would definitely cover my mortgage, and potentially cash flow ~$100 if I rented it out later.

I'm calculating the mortgage using no PMI, and no taxes to be: $1292/mo. Last year taxes were $1225. (1300/12)+1292=$1400(appx).

@Mark Ferguson , what do you think of those numbers? I'm new to this, so I could very well be missing some things.

Hello all,

New to the forums. I have the opportunity to purchase a home via private financing. Terms: Downpayment - 20% Interest - appx 5% Time - 20 yr

The person providing the financing is allowing me to purchase any home he signs off on with the above terms. My limit is 250k. He will not contribute any more than 200k. Financier is a friend of mine, we've spoken with an attorney, and worked out most of the details.

Reason I'm looking at private financing as opposed to conventional:

The main reason is income history. I own a small business, and have been operating it now for 2 years (2014 being our 3rd year in business). My income last year was $4k. This year I'm on pace to do much better (at least 50k), but as we all know, the self-employed are difficult to lend to. Also my credit history isn't super (was foolish at 19), but it's at 655 and rising. So I think it's reasonable to say that I probably won't qualify for a loan for at least a year, more likely 2. I haven't applied for a loan yet, as my mortgage broker friends tell me with my income that I probably shouldn't bother.

Additionally, I feel, and so do a number of people more familiar with the real estate market in Fort Collins, that we are headed for a large appreciation in values and rents, especially around campus.

Thanks to an inheritance, a 40-50k down payment isn't a huge deal. I'm looking at properties in the 180-250k range, close to campus (Colorado State) that would make a good rental in 1-2 years. I've found one that my broker and I are going to look at, and hopefully pursue: http://www.coloproperty.com/listing/details/1035402

I guess I'm just wondering: is this crazy? Am I an idiot? Should I keep renting and in 2 years get something with a much lower down? Is anyone else more familiar with the rental market in Northern Colorado?