All Forum Posts by: Pete Abilla

Quote from @Greg Kasmer:

Pete - I've refinanced a few (3) single families at a time and the lender used a comparable approach, but not sure if that would have changed if I would have had others to refinance (I was comfortable with the mortgage on my other properties). I think the most accurate way to determine the approach would be to ask your lender based on your specific situation - number of properties, etc... My thought is that when you refinance 5+ properties (multifamily size) that may trigger more of an NOI/Cap rate approach with a lender. Good Luck!

I should've been more clear - we're looking at refinancing 50+ single family rental portfolio - and I'm hoping for the NOI/Cap Rate valuation model, but I've heard conflicting reports that maybe the comparable approach might be used.

Quote from @Reed Rickenbach:

If there is no prior relationship with the bank, you'll likely be facing an NOI/Cap Rate valuation - mainly focused on DSCR. And rightfully so.

I have seen instances where the borrower had a strong financial position and used retail appraisals for their cash-out refinance. 

Most likely for a portfolio loan, your asset's ability to cover debt service will be the main focus. Probably 1.2 - 1.25x for DSCR.

I'm actually hoping for a NOI/Cap Rate valuation method because the portfolio is in an area where market comparable model won't be helpful since it's in a pretty stable (good areas but not high appreciating) market. 

Suppose I own a medium sized single family rental portfolio and I’ll be ready to refinance it in 2 years. 

I’m hearing conflicting reports:

1- refinancing a single family rental portfolio will follow the retail comparables approach requiring comps on each unit

OR

2- refinancing a single family rental portfolio will follow the NOI/Cap Rate valuation model like multifamily.

I’d love to hear from commercial bankers and/or others who have refinances single family rentals. Thanks much.

Posting this without comment - but am curious to hear your thoughts on impact on residential mortgages and impact on multi-family.

https://www.ft.com/content/b8eac068-e7c9-42ea-b9bf-6e2b4666f5c3

@Thor Sveinbjoernsson agree with you. It’s going to get very bad. In February I had offers out on 3 homes in Arizona market (a very hot market with multiple offers per home) then March happened. I took my offers off the table. Those same 3 homes are still available and are now 30% cheaper.

Commercial and Residential markets are going to get hammered big time.

Oh and Kiyosaki tweeted this today - https://twitter.com/therealkiyosaki/status/1264584780462436353

Thoughts on this?

https://www.bloomberg.com/news/articles/2020-05-12/if-landlords-get-wiped-out-wall-street-wins-not-renters

@Johnny B Bad hey don’t drag Patrick Star into this conversation. Show some respect man!

Google Trends chart for "Can't Pay Rent" is higher than its ever been, even going back to the great financial crisis. 

Here's interest over time going back to 2004:

See query here: 

https://trends.google.com/trends/explore?date=all&q=%22cant%20pay%20rent%22

As much as I hate to admit it, I expect to see more and more of this happening across America.

https://www.reddit.com/r/realestateinvesting/comments/fotvwa/please_help_my_tenants_organized_and_are_saying/

I'm looking at a few deals in Lorain and am curious to hear your opinion. I know the area, but not from the perspective of a rental property owner. I'm specifically looking on the affordable housing side, east side of Lorain. Any insights on vacancy rates, etc would be greatly appreciated. As well as general thoughts on the area.