All Forum Posts by: Elliot Lamson

@Elliot Lamson do you plan on buying one at a time until you reach 10, and from there go on to portfolio lending?

@TomTinsey I have financed properties utilizing a master lease with a LLC that all air-bnb pays to which that entity then pays the landlord (you). it is the cleanest way for proper financing. let me know if you have any questions. Regards Joe Scorese

On 75-80% LTV with SFR-4plex, and good credit, I've been seeing as low as 2.99% with no points in Florida. These rates are with conventional loans, not portfolio loans. I hope this helps @Elliot Lamson. 


Thanks for the response, looking for more portfolio/commercial loan rates since i plan to buy more than 10+

Hi Elliot,  your rough numbers are very doable in the Milwaukee market.  50k purchase price puts you in some rough areas with high turnover.  better to stay in 70k price point to improve your area and stay time.  always best to buy cash then refy deal by deal.  if you own less then 10 homes with mortgages, that is one type of lending.  If you have more than 10 loans, that is llc lending with a commercial lender.  these loans have higher rates and shorter amoritization schedules. Most property managers have volume discounts. The PM's structure the deal on the front side when you have a few properties and once you have a certain number of properties with them you can negociate the contract. Many good property managers in the Milwaukee market to choose from.  Good luck! Welcome to Milwaukee

From personal experience I can tell you it will be tricky to make these numbers work. 5 years ago they would have worked. 

Your rehab numbers are light, because when you long term hold a property (vs flip) you have to spend more money to bulletproof a property not just make it pretty; i.e. fixing mechanicals to make sure the property will not require ongoing repairs. 

For example we usually replace all of the plumbing and snake the lateral as a default. You'd never get your money back on a flip of course. Same for the rest of the systems. This increases your repair budget and to keep the repairs proportionate to ARV you have to aim for a higher property price segment.

Also know that the median sales price for a single family in Milwaukee is now $192k so you'd be aiming at the bottom third of the market.

Also, doing this remotely is hard - I know people do it, but I am not sure how. I am at my jobs at least twice a week and I have a great crew, but still could not image to do that remotely.

Not sure what your question is about PM? I assume you'd hire a PM.