All Forum Posts by: Roshan K.

@Andrew Davis Thanks for your response. Why would someone be willing to pay more than a sound investment in this market? I have heard some say we are at the top of the market so in theory that would mean something in the future could go bad aka rents go down, people move out, insurance goes up, all things that would drive the cash flow down. So it doesn't make sense to me that someone would pay more at the worst time to pay more? Sorry maybe I am just a newbie and don't fully understand this concept. What are your thoughts?

Secondly i did not include MIP which is a great point. It will cost me an additional $90 per month which would be factored into my 50% expenses (i hope).

Thanks for the motivation I will keep looking brother!

Thank you for all the comments.  I'm definitely moving on, though trying to get my costs back.  I appreciate the details, @Marian Smith.  I've looked at property tax records before for other reasons, but to be honest you're to first to ever recommend to me that I should check those during the purchase process.  Awesome tip!

@Roshan K. @Brett Goldsmith

So I was thinking that with the amount of cash I will have, at least for the first couple deals, that a bank would see that as sufficient reserves to issue a couple asset based loans. I do have access to W2 income history through my wife. She has worked as an RN for the last 2 years making 45k and when we bought our primary we were approved for up to 250k off her income alone (thankfully we aren't stupid enough to have spent that much). I have had 2 different jobs, 6 months of schooling, and 6 months of full time rehab within the last 2 years so that is why I think I wouldn't qualify for a loan. As far as my wife's income goes, like I said in the original post she will be taking a part time nursing job, taking over for her aunt at our small town clinic on MWF, and helping out with family and our future investments on her off days. However she will still be making 25+/hr until after our first kid so we probably could use that income to qualify. I just wanted to know what it would look like with ASSET BASED loans, we will not be trying to get a fannie or freddie loan. And like I said we both have credit scores over 750 and excellent repayment history and will have NO debt. 

I realize I may have made it sound like W2 jobs are the worst thing ever, to me that might be true but I have no issue with anyone that holds one and don't think anything less of them. After we relocate I will be filling my time that isn't spent buying/selling/landlording with project managing/partnering with my cousin who wholesales and flips. I'll probably end up swinging a hammer a lot of days too. 

I will be reaching out to local banks/credit unions in the area very soon. I'll keep everyone posted on how things work out.

@roshan K, The 8 properties you purchased, were they SFR? or were any Multis? I am about to get some cash from selling a home and have mutiple stock options vesting soon. I am would like to look into a portfolio loan buy multiple properties as well. Would you mind listing the terms you received on that portfolio loan and what the requirements were, timing?

My other idea is to start a MHP and rent out space, buy MH and do owner financing on them. I thought this would be a great way to have very passive income. 

@Roshan K.

How good were the deals that you bought? I have a spreadsheet that I am analyzing every expense, 8% vacancy, 10% property management, actual tax bill from county, $200-250/year/unit in maintenance, $350/year/unit Capex/reserves, utility actuals from owner, etc..

How did you structure your loans with your lender? I plan to buy at <70% of value, stabilize, and cash out refi with portfolio lender which will give me all my cash back. Hypothetically it could be perpetual if I structure everything correctly.. Obviously stuff happens so I'll have to come up with more cash at some point I'm sure.

I do plan to continue working, I will be property managing flips for my cousin who wholesales/flips/buys and holds. I suppose I should say I'm building cashflow to live off of eventually, but I don't expect to never work again..

@Brett Goldsmith

You may want to start off buying one duplex or triplex below market value to get the hang out being a landlord. Being a landlord tends to cost more than one thinks. I'd be careful about over leveraging without being a very high income earner or having substantial reserves. This is how people find themselves in a very unfavorable position. For example I had 3 AC's break last month, a tenant that had to be evicted, and had to remodel two units to become rent ready.