All Forum Posts by: Rodney Kuhl

Our strategy was initially to purchase as many rentals as we could with conventional mortgages (i.e. I can have 10 mortgages in my name and my wife can also have 10 in her name), and then figure things out later on how to keep acquiring properties. But things have changed.

We were driving for dollars a couple of months ago (the first time I have convinced my wife to D4D with me, another success!). After writing down a bunch of addresses we were going through the tax records putting together our mailing list and we came across a property that was owned by a small bank. We emailed the bank to ask about financing options they offer and to see if they had any properties for sale, and lo and behold, they sent us a list of their properties. Although most were not properties we were interested in, there were 2 that caught our eye. They had previously listed the property but the listing expired. We offered significantly lower than what they listed it for and much lower than market value, and they accepted! The only catch was, being that the seller was a bank, it had to be a cash deal. Enter the private lender!

We were able to close the deal with his help. Being that private lenders rightfully charge a higher interest rate, I was quite hesitant about the purchase as the cash flow numbers weren't as great as we usually target. Still, with the purchase price and the small amount of rehab that was needed, we were set to acquire a good chunk of equity (we had to as the lender would only lend up to 60% LTV). However, after some convincing from my mentor and from my wife, we moved forward with the process and closed (our first closing where we weren't at the title company to sign the paperwork, another new experience) on Dec 29th! We figured that even if we don't cash flow very well for a year, we can re-fi to a conventional mortgage after a year and then the numbers look good. Rehab started on Friday with a 2-week timeline (very minor work needed), and we hope to have tenants in place very soon.

Overall it was a good learning experience and so far a success! Hope to find #6 soon!

@Account Closed Nice work! Good luck finding #2!

@Ryan Mullin I've never seen someone being attacked on here without their name being mentioned come straight out with it and let everyone know it's them the poster is talking about. Kudos!

@Laurence Walsh-Hodson I will tell you this. I have purchased 3 properties through FS Houses and have them manage those properties as well. I couldn't be happier with the purchases and the management they have provided. Nothing is going to be perfect in real estate investing. One of the houses I bought had the basement flood because we had the most rain in the history of Indy Julys, and it flooded the furnace. Big expense in the first year, no fun. But it happens. I now shouldn't have to worry about that cost for several years, so it's out of the way hopefully.

I can tell you that FS Houses and Ryan and @Ashley Mullin are as knowledgeable, honest, hard-working, and trustworthy as anyone I've met in this business. Take this post how you will, I don't know the exact emails/conversations, but I FS Houses to do what they know is right and what they say they will do.

Lastly, no matter what company you go with, rental properties will have issues at some point. Nothing is going to be perfect. It took me awhile to realize that, but once you do realize that you'll be better off. Good luck!

@Laurence Walsh-Hodson I wouldn't. I think if you are going to invest with a turnkey company the most important aspect is finding people you can trust. Paper cap rates are cool to look at, but the headaches aren't always worth it. Plus, if they keep changing their story now, they'll likely do the same managing the property too.

@Larry Fried I think what you're saying makes sense as far as them going ahead with work under a certain threshold so as to keep the tenants happy. The system my PM has in place allows the owner to get an email as soon as the request is made and if you're on top of it, you can approve very quickly, but I understand how that would make sense. I still prefer knowing ahead of time. But fixing things quickly maybe keeps the tenants for an extra lease, which is worth it as well.

@Zac Davis I can't say for sure what is "common" but this isn't the case with the PM I use in Indy. They have an online portal and I can see anything that comes up, and can then 'Approve' or 'Reject' whatever the issue is. They also have a description of the work that was completed. So, again, not sure what is "common", but if you want all of that info and to be informed of repairs that are happening, you can find it with other PMs.

@Scotty Hollon Great, will keep you in mind for future projects!

@Scotty Hollon Welcome to BP! What areas of Indy do you flip in? And for contracting work, do you have a target area where you'll work? Always trying to find good contractors!

@Raj D. Welcome to BP! You look like a great addition to this community. What neighborhoods/areas of Indy do you invest in? Are you still looking to acquire more properties?

@Account Closed I think the HELOC option is a great one. We don't have enough equity in our house yet to make it an option for us, but once we do we plan to utilize that to help us acquire more properties.

What neighborhood are you in? Duplexes can be tricky in some neighborhoods, but judging from the $67,000 down payment I'm guessing you're in a pretty nice area. What do the numbers of the duplex look like as an investment? If the purchase is near the price of your duplex, rent will have to be pretty high to make it a profitable investment. Does the potential property need any rehab? Is it currently rented? If you need help analyzing the investment returns, I'm happy to do so, just shoot me a PM.

Other options would be potentially seller financing, or else private funds from another source.