All Forum Posts by: Riley Barclay

@Lucas Miles thanks for the insight and correlation between the two. This makes sense to me as to why that shift happened. Every market is different and finding what works is definitely the trick. Understanding this correlation better does help me wrap my head some more around real estate and some of the trends. Appreciate it

Joe thanks for the insight I appreciate it. And by rule I just mean "rule of thumb" as an easy way to evaluate potential properties before underwriting further. My "deals" that I have found also met the 1% rule but never came close to 2% (there were also other deals that met 1% that I passed on because they didnt make financial sense to me and my goals). So I was just curious to see what some properties and deals cost and were bringing in rent wise during each of these times. For example the 2 properties I own were $85k each and started out bringing in $900/month. Im just trying to gauge some trends and understand more as each of these principals are talked about. Like were the properties 200k properties pulling in $4k rent a month or more towards the lines of $50k properties pulling in $1k a month for reference. As property values have increased quicker than rent has, I am just trying to understand and learn from the past to help further my knowledge for the future.

Back when the 2% rule was very relevant what was the average house prices/rent prices that were meeting the criteria? As prices on houses rose, things leaned more to the 1% rule. Now it is starting to be difficult to find houses that meet the 1% rule in most markets (not everywhere). I am interested to see the trend and at what price point/rent/years each of these "rules" has been relevant.

 Lyndsay-Thanks for the info! Yes that is what I was thinking to. Just wanted to start here and see if I could get some more knowledge or possibly connect with someone before I started calling around to local lenders in that area. It gives me hope that you ran across a lender that was able to do a similar deal like this! Thanks!

Yes I knew going into this deal (3 small SFH bundle purchase) it was going to be a hurdle to refinance them but there is usually a way somehow. All 4 properties are owned free and clear, they are all SFR's and located in the same state of North Carolina. I am good to bundle with no partial releases if necessary. The plan is to hold long term and open to a 5/1 ARM or blanket DSCR (would need to do more research on both to gain knowledge). If the numbers make sense then having the available cash is more important as I am slowly trying to build my portfolio. I can provide pretty much any info needed. Im also not in a rush to cash out refi but it does tie up the money for any future possible deals along the way for the time being.

I have 4 properties currently that are owned outright and am trying to figure out how to refinance out of them. The properties are located in North Carolina with estimated values being $100k (property 1) and estimating the other 3 properties to be about $40k each. Based upon the value of the properties it does not make sense to put separate conventional mortgages on each as the points and fees won't work out for the smaller properties. I am looking to get a loan for $150k which is roughly 70% ARV. After talking to a loan officer for a portfolio loan, this wouldn't qualify as he said the portfolio loans he deals with are 5+ properties and a minimum loan of $500k. If needed, I can wait it out and pick up a 5th property but it still won't get me to the $500k limit. I'm trying to be smart and not over leverage. All the properties are currently rented out and cash flowing. Looking for some ideas on how to refinance without breaking the bank or if there is a local lender that someone might be able to point me to that is able to work with this situation. I knew going into the deal with buying the smaller properties this was going to be difficult but there is always a way to be creative to make things happen and continue moving forwards. Any insight is definitely appreciated and if I missed any key info just let me know. Thanks in advance!

@Jeff Copeland thanks for the reply and insight! I'm definitely going to look into an 'after the facts' person/company to see about getting it all permitted. Just wanted to to see best thoughts about going about it and also not causing a problem if there really isn't a need to.

I can see how the issues arrive with the hvac as then it opens up the inspector to see the property and the unpermitted conversion.

All the help is good to make smart choices in the best possible way

Just purchased my 2nd property in North Carolina. It currently had tenants when purchased but they are now moving out. The garage was converted into an additional room/den and from what was listed sq/ft wise it was not permitted. As I am going to go in and do some repairs and upgrades I'm looking for some insight on how to proceed with the garage conversion.

The house currently has wall units for ac and I am going to add an hvac system throughout (including the garage conversion) to match with the rest of the neighborhood.

Should I just add the hvac and continue renting the property or go to the city and get permits/inspections done for the conversion that was completed? I want to make sure the money I'm putting into the property with the hvac will not have to be re-done due to the unpermitted work on the garage in the long run.

I know if I get the permits I can raise the sq/ft of the property but also heard stories that they may want to tear everything out to the studs in the conversion. This wouldn't be an issue but from everything I've seen, the conversion was done well and would hate to rip it out just to put it all back together again

Any thoughts or insights would be great! Let me know if any more info would be needed. Thanks!

@Tom Ostasik thanks for the info I appreciate it. Sounds like inventory everywhere is hard to come by

@Steve Kerr thanks for the info. From research and traveling around that area it looks like it is really important to have some boots on the ground that really know the area. Thanks for sending over Nathan's info as well