All Forum Posts by: Spencer Cuvelier

There are financing options available that allow you to refinance multiple properties together - commonly referred to as a portfolio loans or blanket loans. Here's a few options:

- Portfolio Lenders: some local banks/credit unions/specialized lenders offer portfolio loans. They are more flexible w/ their underwriting criteria and might be willing to consider a refi for multiple properties like your given situation.

- Commercial Lenders: these loans typically are tailored for commercial properties or investment portfolios 

- Online Lenders/Crowdfunding Platforms

They will all typically evaluate the overall performance and value of your portfolio, as well as your creditworthiness. I recommend reaching out to multiple lenders, explain your strategy, and inquire info about their portfolio loan options. Terms/int rates/fees/eligibility/etc. 

Hi Rich!

I would start by evaluating market trends in both locations. Check factors such as property prices, rental rates, vacancy rates, supply and demand, median household income, school districts in the area, the audience you're trying to appeal to, etc. You can gather a lot of this information by looking at reports, talking to local agents and brokers, lenders may even have some insight. 

Dependent upon your investment goals / strategy (LTR v STR), consider the job market in both locations. A strong job market can lead to higher rental demand and more stable rental income. Look into factors such as unemployment rates, job growth YoY, and the types of industries thriving in each area. I would take population growth into consideration as well as this can lead to higher demand for properties.

If you're looking for long-term capital appreciation, you may want to invest in a location with strong population growth and a thriving job market. If you're looking for stable rental income, you may want to consider the location with the highest demand for rentals and lowest vacancy rates. Certainly take into consideration the real estate rules/regulation in each city, some cities/states may have stricter regulations - rent control, specific zoning laws, etc. 

 Overall, you can't go wrong in either city if the price is right. You make money when the property is bought - not when it is sold. Best of luck in your decision making!

As far as addressing your first question, you need to determine the fair market value of the property by researching recent sale comps of similar properties in the area. Subtract any necessary repairs or renovations from the market value to arrive at the ARV - this step may not be necessary if renovation/repairs aren't needed at all. Factor in any holding costs you might incur while the property is being renovated or sold (mortgage pmts, property taxes, insurance, etc.).

As for whether investors will take little cash flow, this depends on investors specific goals and investment strategy. Some investors may be willing to take on smaller profit margins if they're able to purchase them at a lower price and hold for a long term. If you are determined to sell a property with low profit margins, you may need to adjust your expectations and be willing to accept a lower offer.

Ultimately, the key will be doing your own due diligence. 

Congratulations - sounds like you're off to a great start! 

Has your partner done an investment like this before? If so, I would lean into him & see how he decides whether he's making a good/sound investment decision or not. 

I would start by conducting some sort of market research: look into the area and find out what makes it good. See if there's competition in the area, what supply & demand looks like, vacancy rates in the submarket, trends, and potential growth. 

Request a pro forma statement from the developer. This will show projected income/expenses, expected ROI, and cash flow projections. Review the numbers and don't hesitate to ask questions - pay attention to contingencies, development fees, other costs associated with the process.

Understand the legal/regulatory framework - be sure to understand the requirements involved with the dev process, see if the project requires any special permits, zoning changes, or environmental clearances. 

Check the development plans - ask questions about the design, layout, amenitites, and if its appropriate for the target market/audience. Consider other factors such as location, proximity to amenitites, and the quality of the surrounding buildings/infrastructure. 

If you're specifically looking for tools to use to punch in projections/numbers, BiggerPockets has a rental property + house flipping calculator and a real estate analysis tool. If you're looking for more, just google it and plenty of results will show. 

Investing in RE is no quick and easy process, be sure to take your time, research, analyze and make an informed decision that aligns with your investments goals & risk tolerance. 

There are a few ways to analyze a deal while taking into account the expenses associated with the down payment, without manually figuring out your monthly expenses.

One way is to use a real estate investment analysis tool/software. Many of these tools allow you to input your down payment source and amount, and will automatically factor in any associated expenses such as interest or monthly payments. This will give you a more accurate picture of your overall cash flow and ROI. Some popular tools/software are right here - using BiggerPockets' Rental Property Calculator, DealCheck, and Real Estate Investment Pro.

Another option is to work with a real estate agent or broker who has experience working with investors. They can provide insights on the local market & financing options as well as helping you identify profitable deals.

Hi all,

There's a mobile home for sale in my area, here are the specs:

- Built in 1975

- 2 beds, 1 bath

- Walls, floors, windows (aside from one bedroom) were remodeled in 2015

- No central air but has window AC installed

- The flooring around the toilet will need to be replace

- Asking for less than $15,000 and seller has the title in hand

I understand I have to submit an application and get approved to purchase a mobile home - am curious to what other due diligence I should/need to do prior to investing in my first mobile home. I'm extremely naïve, this is my first time purchasing a rental property let alone a mobile home. Any comments/questions/concerns will be greatly appreciated - thanks!

Hi all,

There's a mobile home for sale in my area, here are the specs:

- Built in 1975

- 2 beds, 1 bath

- Walls, floors, windows (aside from one bedroom) were remodeled in 2015

- No central air but has window AC installed

- The flooring around the toilet will need to be replace

- Asking for less than $15,000 and seller has the title in hand

I understand I have to submit an application and get approved to purchase a mobile home - am curious to what other due diligence I should/need to do prior to investing in my first mobile home. I'm extremely naïve, this is my first time purchasing a rental property let alone a mobile home. Any comments/questions/concerns will be greatly appreciated - thanks! 

I read this the other day talking about potential opportunities in the current / upcoming market and figured I'd share. Credit: Alan Corey 

1. Short-Term Rentals in A+ locations: A recession means fewer vacations. Layoffs will squeeze mom and pop operators in expensive locales. This combo should provide discounted opportunities for furnished top-tier properties in off-peak season like mtn towns and snowbird states.

2. Commercial RE: Operators that have to refi soon will have to do so at a much higher rate, possibly making properties negatively cash flow. Selling at a discount before a refi will be the best way out for many.

3. Luxury Apartments Under Construction / In Dev: Will be very difficult to sell brand-new lux this spring. Be ready for to neg a ton of free upgrades and having closing costs paid for. They will be less inclined to drop price to protect comps, but will give you the world outside of this. 

4. Empty Lots in Half-Built Neighborhoods: Builders developing neighborhoods will feel the pinch and most likely stop building their in-progress nabes until rates change. Buying the unfinished lots will come with a steep discount if you can offer cash or buy more than one. 

5. iBuyer Inventory: Tech companies that overpaid for homes in the last 3 years are still paying interest on the funds they borrowed to buy these assets. They will sell for a huge loss to a hedge fund, but the retail buyer making low-ball offers on listings could see success. 

Great question; I plan for this to be solely an investment. Live at this house for 13 weeks (the stipends may cover the mortgage if this is even a possibility), and then turn it into a long-term rental. What would you recommend for financing? Something along the lines of an ARM?

Sorry for the confusion - her first contract starts Feb. 20th in Idaho. After 13 weeks spent in Idaho (May 27th is her last day), she will then find another contract close to home where I plan to purchase a home. After living there for 13 weeks, I plan to rent it out! Thanks for the clarification question!