All Forum Posts by: Tanner Lewis

You would most likely need to just refinance with the VA loan and have a transfer deed changing ownership at closing.

 As in a heloc, or cash out refinance, or any sort of financing

It depends on how the current deal is performing. But you have two main options: 1) cash-out refinance and keep the property or 2) 1031 exchange into a larger property.

Many DSCR lenders stay away from these since they are such an illiquid asset class. Same thing with ~$3m+ deals. You can do some of these lower-valued deals as a portfolio, but other than that, credit union/bank financing may be the way to go.

I would avoid mobile homes as they are such a volatile asset class. Not to mention that it will be difficult to finance. I know other hard money lenders who can do them, but you will be paying +6% higher interest rates on the debt than an average hard money deal.

If you go forward with a deal, I would get an SFR with a lipstick rehab. That should be the best place to start.

Hey Dallas, I am a lender, and it sounds like you are looking for off-market distressed properties to BRRRR. I'll shoot you a DM, and we can connect!

 If you are starting out investing and are just looking to hedge against inflation, this is a great option.

Hey Les, are you looking at traditional financing to use increased leverage or would you be going with a 20% down option? There are some other options out there that may be better for your goals, especially if you want to reduce liability through borrowing within an LLC or keep conventional options open for buying personal residences in the future.

 I absolutely agree that the property type depends on what your investing strategy is. I assume you are referring to small multifamily deals (2-4 units), but these deals will be more focused on cash flow since you have better economies of scale with a higher unit count. I consider single-family homes more of an appreciation play since most homebuyers only look for one unit. These properties are more susceptible to buyers overpaying because they are emotionally attached to the house. First, I would set your investing goals and then determine which strategy and property type best align with your goals. 

It really depends on what you are looking for. Some of those markets are primed for mainly cash flow, some offer a good middle ground between cash flow and appreciation. Your market should fit your goals and then refine your investment strategy based on what other investors are doing in the area.