All Forum Posts by: Sam Lewis

I first created a home owners policy as if I were living there solely, once I had renters, I called my insurance company (USAA) and explained that I was renting out rooms. They had to send my policy to another department for underwriting and my policy went from $1150 or so to $1250.

I am no expert in insurance but I spelled out certain worst-case-scenarios (fire, tree falling down, renter damage) and they ensured the policy covered all of those scenarios.

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@Brandon Miller reinvest : )

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@Michael Kissi I think about this all the time. My mindset was so different in college - had never even thought of RE investing or financial freedom

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Baltimore, Maryland

Originally posted by @Devan Kaye:

Originally posted by @Sam Lewis:

Definitely, that's the plan! I'm currently in Phoenix, AZ and will start going to local meetings :)

Such a cool market! I have heard nothing but great things about Phoenix - have visited once

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I'm hoping this post will be helpful for local investors on BP:

If you could go back in time, what do you wish you could tell yourself (or do differently) before investing in real estate?

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Baltimore, Maryland

Originally posted by @Devan Kaye:

Originally posted by @Sam Lewis:

In most cases I would say that househacking would be the best alternative, but seconding all what is said above, I think your best move would be to sling shot into rentals.

That being said, I think "BRRRR"-ing a property would be your best move, rather than turn key. You can achieve quicker growth this way, but it comes with risk.

Hey Sam, thanks for your input! I'd 100% househack if I were able to get a loan that large. I just started a new job where a chunk of my income is commission and banks want to see 2 years of commission. To a bank, it looks like my income is low because all I have to show right now is my hourly rate.

I know you would, but it will come in time ! In the mean time keep working that job and earn those commissions so you can eventually qualify that as stable income.

In the meantime you can network with local investors to find an off-market property that is a deal, that you can rehab, rent, and refinance - and ideally pull money out in the end : )

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Originally posted by @Stephen Predmore:

Alternatively you may want to consider a hard money lender to finance your deal. They'll require you to have the 10-20% down payment (which you have) and they should be able to handle the rest + rehab. After you're done, you'll just need to refinance into long-term 30 yr debt.

This entire thread is a gold mine for a new investor.

I have one question for you, are you suggesting that it is easier to refinance into a long-term 30 year mortgage with a hard money loan?

Which loan service providers (the two you were denied) did you attempt to go through with a 30 year conventional?

I have a feeling we'll be seeing you a lot on the forum here!

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Originally posted by @Jon K.:

Whether or not they're continuing to title in their personal name as well as their finances will dictate the best course of action for obtaining financing. The plan is doable but depends on a lot of variables including finding the deals. Those rents are obtainable at those ARVs depending on the neighborhood but are approaching the upper end of what you're likely to get unless you're marketing solely for vouchers in my experience.

You can have up to 10 properties with loans when using conventional fannie/freddie backed financing if your personal finances are solid enough and you're titling in your personal name. After that or otherwise you're talking commercial lenders.

The best way to lock in financing is to talk to lenders months ahead of time to discuss your situation and plan so you know what your real options are before you hit that 6 month mark. In pre-pandemic times you could find non-qm fixed rate loans with no seasoning whatsoever, or as little as 3 months and if you were going to use them anyway it would have been a shame to wait for the 6 month mark just because you didn't know your options. I'm not saying those are still out there, I haven't looked lately.

Great points and insight. I think the ideal cross-over would be a lender who has no seasoning and would allow the property to title in his name. Icing on top would be a 30 year amortization, rather than 20 or 25. I am under the impression this would likely be the case since it wouldn't be a commercial lender.

Again, thanks for the input

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Baltimore, Maryland

Hey Corey, I am a big fan of house-hacking. I have posted quite a bit on the forums about it - I really like room-by-room rentals, but multifamily could also work (having your own unit with the mrs)

If you have any questions feel free to reach out!

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Hey folks, I have a client who is looking to purchase a BRRRR deal every 3 months, with the plan to cash-out refinance 6 months post-purchase. The 6 month timeline would be 3 months of rehab, 1-2 months of placing a tenant, and the last 1-2 months locking in a refinance.

The ideal property would have an ARV of 150-160K in BalCo, generating gross rents of >$1600. He has two properties that are currently in his name, and not an LLC. I have explained to him the pros and cons of having an LLC.

How would you recommend him locking in financing post-rehab? Is his goal sustainable with continuous cash out refinancing?

Correction: these are not MLS deals

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Baltimore, Maryland

All Forum Posts by: Sam Lewis

Sam Lewis has started 10 posts and replied 277 times.

Post: Home Insurance on Househack

Post: Pay off rental mortgage or reinvest?

Post: If you could go back in time... [Greater Baltimore Investors]

Post: Should I invest in a rental property or buy my own home first?

Post: If you could go back in time... [Greater Baltimore Investors]

Post: Should I invest in a rental property or buy my own home first?

Post: My first Baltimore buy & hold investment.

Post: Advising a client BRRRR strategy (cash-out financing)

Post: Newbie in Frederick County MD / Jefferson County WV

Post: Advising a client BRRRR strategy (cash-out financing)