All Forum Posts by: Rob Saxelby

 Hey Rob! Yeah would not recommend self managing from out of state. What part of KC are you investing in? 

 I own a handyman company here in Kansas city. I work for a lot of PM's I have a list of a few that I would feel comfortable recommending. You can PM me if you would like

@Rob Saxelby because of fraud concerns, you should also ask the seller to personally sign Reps & Warrants to be liable for any potential fraud.

There's a big case going on about this in Michigan with some NY investors, where income was inflated via falsified rent ledgers and expenses were lowered via falsified P&L's. Transaction was for over $100 million.

You can and should absolutely ask those things. Financial due diligence is part of the overall due diligence process. Financial due diligence includes an audit of the leases and financials.  If you're talking with a broker they should be able to get that information for you.

When you take over a property, you take it over with the existing leases and tenants. Best to look before you leap!

As a lender, we would include the HOA in the DSCR calculation, regardless of whether the tenant paid the expense or not. If the property is vacant, you will be responsible for the HOA fee.

Staci

Including it doesn't hurt. It helps you understand your total monthly expenses when the property is vacant or when having the tenant cover it is no longer an option.

@Rob Saxelby Another widespread path taken for small investors wanting the best possible loan options is to purchase the property as an individual and then, after closing, transfer the title into an LLC. As your portfolio grows your options expand and more lenders will want to work with you in the LLC. Not taking anything from the lenders on this issue, they gave great advice also, it's just that most first-timers don't start in an LLC.