All Forum Posts by: Rhett Kelton

I would stay in the last 6 months (max) and expand your area.  At least that is what the appraisers have been doing to me the last year.  They have come up with some results I would never have considered, but there is only so much I can push back. I have gotten them to change their appraisal numbers a little, but not much.

@Monique Webb

I would not assume anything about a potential imvestor's financial situation. There are so many people looking for deals, and many of them will have their own financial position.

I've heard of, what I thought, we're some of the craziest situations that people have been in in order to purchase a deal. And there are SO many ways to finance deals.

There is an open REIN meetup on the 3rd Wednesday of the month at Jim and Nicks at 12.  I would check the REIN facebook page to confirm though.

I have a 5 plex in downtown Murfreesboro, C class neighborhood, that I am selling at about a 7 cap.  A block away from MTSU, 

I have a 5 plex in downtown Murfreesboro, C class neighborhood, that I am selling at about a 7 cap.

I would say so. A couple months ago I had the option to do a 5/1 ARM at 5.5%, or a 10/1 ARM at 6%, and decided on the 10/1 just due to the piece of mind. That takes a lot of the pressure off because I am not concerned about the timing of the next real estate cycle.

 You can absolutely get the SH refinanced.  If your current lender can't do it, then just talk to some other commercial bankers.  You will come across several of them that will have different options for you. 

My situation and I am looking for any recommendations or paths to follow.

I purchased a 5 unit property at auction in January 2022.  Purchase price was $451,000.  I originally bought it with hard money, as I had a personal lender back out 2 days before closing.  My commercial banker will finance up to 75% of purchase price ($337,000), leaving me with approximately $120,000 that I need to bring ($114,000 + closing costs).  I am getting a pretty good rate through him, so I am looking for a 2nd position loan for somewhere between $100,000-$120,000.   I would like to pay 6-7% interest on a 10yr+ loan, either interest-only or a 25-30 amortization.

The property brings in $4250 monthly, with 4 leases through the end of October, and 1 lease through June 2023. Annual taxes are$ 2681 and insurance is $1934.

 I can some cash to the table, but also have the hard money and some deferred maintenance that I need to take care of.  

My personal DTI wouldn't allow me to qualify for a standard loan, so I am looking at a DSCR/private loan. My credit score is in the 785 range.

I have 6 other doors in the neighborhood.  They gross $107,400 annually.

The property is in Murfreesboro, TN (about 40 minutes south of Nashville) and right next to MTSU, so there is a stable market of tenants (although none are currently students.  Go figure).

  All help is appreciated.

@JayCinta Henry Facebook Marketplace? It takes a little more weeding through, but if your pm is the one in charge of it, then you shouldn't have a problem. I do it myself though.

For every 100 requests about "Is this still Available?", I get back and forth communication from 25 of them, then 5 of them fill out the actual applications. That's for me personally though. All in all, it takes about 4-5 hours of communication (replying to requests), then 2-3 hours of meeting face-to-face.

@Sanjeet Dighawa I think he would be a great tenant, especially if it's a 2-year lease. More than likely, he will be able to help you as far as clarifying any lease or legal issues, and then we'll have solid financials as well.

If you start off on the right foot, he will probably be a lot more helpful than hurtful, other than being a little nitpicky.