All Forum Posts by: Roddy Knowles

Hey @Fletcher Caulk, did you end up finding an agent in Birmingham that you had a positive experience with?  If so, I'd love to get his/her contact info.  Thanks!

I'll see you there. Looking forward to it. 

I'm looking at the Orlando market for mid to large size multifamily properties (~16+ units). Would love any recommendations for both property managers and agents who specialize in multifamily and are accustomed to working with investors. I'd also be happy to connect with any other investors in the area to discuss their perspectives on the market - and would be glad to share mine on the markets in which I'm currently invested: Charleston, SC and Atlanta, GA. Thanks!

I'm looking at the Birmingham market for mid to large size multifamily properties (~16+ units).  Would love any recommendations for both property managers and agents who specialize in multifamily and are accustomed to working with investors.  I'd also be happy to connect with any other investors in the area to discuss their perspectives on the market - and would be glad to share mine on the markets in which I'm currently invested: Charleston, SC and Atlanta, GA.  Thanks!

Hey @Sean Johnson, we also have a good meet up every other week organized by @Danny Randazzo that is great for networking. I’d be happy to help with any relevant recommendations too.

Thanks @Troy Gandee for setting this up again. Will look forward to seeing you there.

I'll be there. See you shortly.

At a minimum, they're going to require past 2 years tax returns, recent pay stubs, statement of current financial situation, and hard credit pull. And they'll do an appraisal on the property, usually a full one but maybe a desk appraisal if LTV is low enough. You can use a HELOC to finance an investment property and though I'm not an accountant, I have a been told by a few that you can deduct HELOC interest when it is used to finance an investment property (purchase, repair, improvement).

I'm in the process of finalizing a HELOC on my primary home. According to the lender, my DTI, not LTV is what is causing the loan amount to be a bit under what I'm looking for. They'll go up to 90% LTV but I'm capping out at lower than what that amount will be because the highest DTI they'll do is 50%. I'm in the process of getting clarity from them on two points, which I'd love to have input from the BP crew as to if they are looking at things appropriately/fairly:

1) Rental Income: I believe I'm getting 75% credit for rental income from 3 properties seasoned 4+ years.  I've read some stuff that says 75% is standard and others saying some lenders go up to 100% for experienced landlords/properties.

2) Property Sale Income: I sold 3 properties last year: 2 flips and one long term hold.  I'm not being given credit for any of that income as it is deemed non-repeatable or one time income.  I understand that logic, though I could also argue that some % of this would be logical to count for someone in the business of buying and selling real estate (though this is not my full time job).

Would love any thoughts about this.  Thanks!

While you may get lucky with a lender willing to extend the draw period, that's unlikely. Depending on how long you've had the line and your current rate, it may be worth shopping around for better terms. 10 year draws are common and draw period shouldn't affect rates. Sometimes lenders are just lazy and tick the box for 5 year draw. I had this happen at closing once and when I called it out, they sort of shrugged and said, don't worry about, we can just do a new line in 5 years. That didn't fly with me so they just fixed it and made it a 10 year, which is better for obvious reasons.

Also, I agree that HELOC is almost as good as cash on hand, except for (at the risk of stating the obvious) you're going to pay interest will you pull money out of the HELOC. That said, I'm of the opinion that it usually makes sense to pay down a HELOC rather than have money sitting in a low interest savings account.