All Forum Posts by: Tom Cotter

 Will do, thanks again Melissa.

 Absolutely, boots on the ground plays a huge factor. I'll definitely DM you should I head in your direction!

 I’m putting my outstanding principal balance against my rental property’s current market value. Not sure how the numbers are useless. 

@Lamont Marable it sure will!

@Melissa Nash Yes, I'd be willing to take a hit on the cash flow to purchase a property that is landlord friendly. Are there metrics or statistics that I can observe to determine what is considered landlord friendly? 

@Lamont Marable An apartment building would be my ideal purchase, but I'd like to build up my personal real estate portfolio before tackling such a big project. Thanks for your input!

@Melissa Nash I appreciate your insight! I can see that Huntsville is becoming more competitive with the anticipated growth. I'll be putting more research into the Birmingham area. And I absolutely agree that when investing out of state a good team is crucial.

Hello BP,

My current situation:

I live in Northern VA, I have a rental property here with about $175K in equity and have my primary residence with about $60K in equity. (These numbers are base on my principal balance against "Zillow's Estmate" not sure how accurate they are.) I'm trying to determine the best avenue to take in terms of my next move in real estate. The rental property for $175K equity has decent cash flow, and my primary residence at $60K equity, I'm renting out my basement.

Ideally I'd like to continue to buy rentals where I can generate cash flow and build equity. 

To do this, I'd like to use the equity from my rental property to purchase another rental using a Cash Out Refi loan, then use the rental income to pay off the Cash Out Refi loan. Then pull the equity to purchase another rental, (using the BRRRR technique).

I'm looking to buy a rental property out of state due to the price point and rental income ratio. I'm currently looking to buy in Cleveland  (OH), Memphis (TN) and Huntsville, (AL)  cash from the equity I can pull from my rental in Northern VA.

The reason I'm not looking to buy a rental property in Northern VA is the price point is too high for the rental income.

If there is another avenue to take someone can recommend to get a better ROI, I'd love to hear it. Hopefully this thread can help others in the same predicament I'm in.

Any insight would be greatly appreciated. If there is a lender that has worked with investors in this specific area, please feel free to PM me.

Thank you,

-Tom

Yes, I should clarify that this is going to be an investment property, I have no plans of occupying the home.

Albert, I appreciate your detailed breakdown of all the numbers. With the interest rate on my primary home, the numbers add up to exactly what the interest rate I was quoted at. Its good to know if I can hit 25% down I bring the lower the interest rate somewhat. Again thanks for the breakdown.

Kristina, that's good to know 15% down is a possibility. I was told since this is an investment property the absolute lowest amount down I could put would be 20%. I'll definitely be in touch with Eaglebank. Thanks for the recommendation!

Hello All,

I'm in the process in buying a second home for the purpose of renting out. I plan on going with a conventional loan at 20% down, the loan officer I'm working with has me pre-qualified and has the interest rate at 5.375% (not locked in). I was told by him the only way to get the interest rate down would be to put down a bigger down payment.

Is 5.375% normal interest rate for an investment property? 

Would there be any other way to bring it down, besides a bigger down payment? 

I'm located in Virginia and my credit score averaged at 790.

Any help would be much appreciated!

Thanks!

Tom