All Forum Posts by: Sean Forner

I am about to have 6 properties and 6 mortgages. I have a great lender, but unfortunately they can only lend up to 6 properties when going with conventional financing. I know Fannie Mae lenders can go up to 10 properties, but you need 6 months PITI in reserves for all of the properties that you have a mortgages on. I want to expand rapidly, but finding financing after 6 properties is proving to be difficult. How do you all get properties and grow your portfolio? I don't want to have to wait to purchase cash because then I will be limited to one house a year. That is slow growth to say the least.

Thanks for the input. Great suggestion on being a private lender. I have thought about it and have had 1 individual ask for $60k at 12%. As for Option 1. They do all maintenance and repairs as long as the tenant does the damage. Say the HVAC needs replacement, I will need to handle that, but if it is minor they will cover it (pay for it) and have done so in the past. Same goes for minor plumbing issues. 

The properties may not get trashed (typo) on phone, but is definitely a risk as it is in a C- area on the up.

Hello all,

I wanted to see what you all think about this situation I find myself in. I want to be a hands off investor and I have two ways to accomplish this. I have a relationship when I can rent out my properties for about $1200-$1300/month and net between $850-$1050/month. This group sublets my property and takes all responsibility for any damages and repairs as well as does bi-weekly cleaning and will restore the property to original condition at the end of the lease, which is for 5 years. Now I can continue with them for every deal or I can rent out the properties for $1800-$2000, hire a property manager at 10% gross, but the term will be for 1 year and the properties could get trashed. I would bet in the above situation ~$1250-$1300/month. Which option would you go with. The one is obviously much safer and is guaranteed income. I've already done it in the past and is absolutely passive with no worries. The other will net me more each month ~$400, but my property will get trashed and I'll have to replace carpet and paint of course. The one deal even includes carpet replacement and painting. What would you do?

Does anyone have any lenders that you can refinance a low mortgage? Mortgage is currently $34,000 and I need to refinance, but can't because lenders are stating that closing costs cannot be more than 5% of loan amount. 

Does anyone else have any suggestions for the course of action? Possibly just adding bigger ducts and a return air duct?

Exactly. The unit is brand new and is too big for the 1200 square foot townhouse, so it heats up the space quickly and then shuts off.  The unit is working very well except for two bedrooms on the top floor, which don't get much air flow. I just don't see the point of replacing the entire system for a low end rental. The house was $40,000 turn key (with this issue of course that was not addressed).  

The companies I have used won't keep the existing unit and want to replace the ducts as well. I know they just want to make the most money possible. But from my eyes I just see that if I do that I'll spend $7000 now or just wait until the system fails and then replace it. Is there any risk of carbon monoxide being released from the unit?

I've received a second bid and they found the same issue. Unit is too large and the ducts are too small. Is this a huge issue as I am not liable for the utility bill. FYI I don't know much about HVAC and am taking this as a learning experience.

The ducts need to be larger than they are now. That could cause some issues. However, do I need to replace the entire system? This is an enormous cost.