All Forum Posts by: Skyler Wheeler

Thanks @Cory Wallace

@Brandon Chandler I was basically talking to banks while negotiating the deal with the seller.  It was a few day process of course getting down to that price.  Meanwhile I was calling around to banks to see what they offered and the terms.  Once I decided on the lender, I filled out my personal financial statement and got the property officially under contract.

Cashflow right now is at $1600 after all expenses, repairs, capex, prop management (I'm doing that myself for now) etc.  Cool thing is, they are between $150 and $250 below market so once the current leases run out, should be able to raise that cashflow quite nicely!

Investment Info:

Large multi-family (5+ units) buy & hold investment in Morganton.

Purchase price: $350,000
Cash invested: $52,500

Small 8-unit Complex. Figured I had to start somewhere, so why not start a few steps into the "stack" as Brandon calls it!

What made you interested in investing in this type of deal?

I felt that multi-family was the best way for me to get started because of the economies of scale. I believe that it is a more "forgiving" asset type and this size is perfect for where I was at financially and comfort wise.

How did you find this deal and how did you negotiate it?

I was actually referred to the seller by a guy from my church. I was telling everyone what I was interested in and he introduced me to the seller.

The seller did not have it listed and initially was asking $350,000 for it. He did not want to pay realtor fees. He also had an adjoining lot that he wanted to get rid of. He originally was asking $35,000 for the lot. I offered $345,000 for it as well as $5000 for my broker that I would pay. This allowed me to finance it all less my 15% down.

How did you finance this deal?

I went through a small regional bank. They offered very competitive rates and was willing to lend to me despite not having any other experience. I was able to use a HELOC on my primary residence to pay for the down payment. So I actually got this with $0 of my own money!

@James Trammel you may want to try to connect with @Lori Webb. She is in your area and sounds like she may have some great info/insight

I'm looking for options for financing a multi-family deal.  Details about the property are as follows:

The property is an 8 Unit comprised of 2BR/1B apts.

It is located in Morganton, NC

The property of interest is full of renters. However rents are below average (according to rentometer). Property doesn’t need much TLC but with a little attention, rents could be raised closer to average.

The purchase price is $320,000. Current rents are $4500.

I have a salaried job plus commissions that I have been in for 5+ years.

My credit is between excellent and good. Biggest issue is length of my oldest account (I’m 29 and have only had my house for 5 years so not a “whole lot” of credit history)

Sorry for the long post, but following the template suggested in this part of the forums... I'm looking to make my first leap into REI with a small multi family deal that I have come upon. With this comes a litany of questions around the financing...

The property is an 8 Unit comprised of 2BR/1B apts.

It is located in Morganton, NC

I have spoken to a few lenders in regards to financing the purchase of this property and this is where I need some clarification and advice.

I have found a lender that will finance up to 80% of purchase price (20% down). My goal is improve the property once owned and increase rents up to market value as vacancies happen and then refi to hopefully get some of down payment back and repeat the process (BRRRR with multi). It seems that I can not cash out refi off of anything other than purchase price until after owning for 1 yr. I was hoping someone could clarify if this is accurate or am I just not asking the correct questions?

I do not own other rental properties(yet), only my house. I plan on using equity in current house as a down payment (HELOC unless anyone has other/better ideas).

The property of interest is full of renters.  However rents are below average (according to rentometer).  Property doesn’t need much TLC but with a little attention, rents could be raised closer to average.

 The purchase price is $320,000.  Current rents are $4500 and average of 2 BR, 1 B in that area is closer to $700.

I have a salaried job plus commissions that I have been in for 5+ years.  

My credit is between excellent and good.  Biggest issue is length of my oldest account (I’m 29 and have only had my house for 5 years so not a “whole lot” of credit history)

Biggest thing I’m looking for is recommendations/suggestions on loan types and then clarification for Cash Out Refi options.

Thanks in advance,

Skyler