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All Forum Posts by: Tyler Cotter

Tyler Cotter has started 3 posts and replied 30 times.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $70,000
Cash invested: $21,233

Duplex, side by side each 2/1, 700 SQFT

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

Previous purchases in the market. Price to Rent

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

My agent found this deal. Typically wouldn't invest in this Zip code, but PTR looked good and it was a well cared for duplex. Negotiated several times during inspection period.

How did you finance this deal?

conventional financing with 20% down.

How did you add value to the deal?

several small things that needed to be cared for.

What was the outcome?

appraisal came back around 10% above asking.

Lessons learned? Challenges?

I inherited long term tenants. I ran the numbers at what I believed the expected property rent was for the residential condition. However, with the proper advice from my PM, I kept the tenants at well below market rent in order to keep. I believe this was the proper decision as I will likely not have to go through renovations, and it still cashflows.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Dave Poepplemeier and LAPLANTE as my PM. This team knows the market, and gives the advice you need to hear, although it may not be what you WANT to hear. Honesty is key for me. Ultimately, very happy with the little team built.

Post: DUPLEX INVESTMENT PROPERTY.

Tyler CotterPosted
  • Posts 32
  • Votes 12

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $123,000
Cash invested: $30,000

Duplex property. Purchased using a 30 year fixed conventional. Down payment and costs of repairs cash was used via my IBC policy.

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

Great cashflows for the area at a starting pricepoint that I was happy with.

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

After doing some homework I narrowed it down to Toledo Ohio. After finding the City, I was put in contact with an Agent (Dave Poeppelmeier) via an investor friend.

How did you finance this deal?

My downpayment came from a loan against my IBC policy that my wife and I have. We then secured a 30 year conventional loan.

How did you add value to the deal?

We negotiated some minor plumbing issues during our escrow. Outside of escrow I also used my IBC policy to fix additional issues.

What was the outcome?

I was very happy with the overall condition of the home. The plumbing issues were minor, but gave us the ability to work with the seller and find middle ground. Currently have two tenants paying market rent, and area leased until mid 2023.

Lessons learned? Challenges?

Lender qualifications/ and expectations of the property did pose issues during escrow. This posed a challenge and at times I didn't think the file would go through. So much of escrow comes down to communications and building the team that can work through issues.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

As an LO for TQL Financial I was able to handle the loan service. I worked with Dave Poeppelmeier of LAPLANTE REAL ESTATE. I was super happy with Dave and he is ultimately the reason this deal worked out. The guy hustles! I'm also very happy with my purchase of an IBC policy through James Neathery's office. This gave me the financial support to get this transactions completed.

Hey Zach, 

Congrats on the home purchase ! Glad to see you already have equity in your home, and will soon be able to leverage some of your debt. Like alot of things in real estate, the answer is " it depends". A HELOC maybe great, but is a large open revolving debt. Currently the market is still sitting below the average HELOC rate in my experience. Meaning, a purchase with HELOC money may be good as means of acquisition, but with the intent to close it ASAP.


Also consider a refinance. Most lenders will allow for 80% LTV. With an appraisal of 330K that means 264K to you. Something to consider. Hope all goes well !.

Hey Thomas, 

Unfortunately, him not having consistent employment will be a major issues for underwriting. If you could support the loan by yourself (DTI, employment, credit) I would suggest your solely on the loan. Your partner could be on title with you. Hope this helps. Cheers

Hello Santosh,

Congrats on the CA Home purchase. A Heloc can be one a great tool to utilize future home purchases and free up current equity. Keep in mind this is a open line of credit, which could be pricey if your using it for 20% REI. As it stands Cashout REFI rates are lower than HELOC rates. This also allows you spread the debt over the course of thirty years. I'd love to talk more about the concepts. Hope this helps.

Hey Tony,

Id love to get on a call and talk real estate ! ill send you my number in a PM

Post: Is 20% down still the norm?

Tyler CotterPosted
  • Posts 32
  • Votes 12

Hey Chris,

This will depend if its owner occupied or not. Typically if purchased non-owner occupied the standard is 20% and can go up depending on number of units. With owner occupied multi family, FHA is a great opportunity and can allow for 3.5 % down. Ill send you a PM if you have further questions. Cheers

Hey Ryan,

HELOC on rental is going to be a tough find! a lot of banks either won't do them and or will require a higher loan to value. Depending on a rate, maybe a cashout refi could be a better option.

Post: Funding Deals as a New Investor

Tyler CotterPosted
  • Posts 32
  • Votes 12

Hey Tyler,

Glad to you see you got your primary residence under your belt. Depending on rates/ appreciation, you can consider a heloc or cashout refi. Each have pros and cons and depend on individual circumstances. Regarding an out of state REI LTR conventional mortgages are going to require 20% down. Hard money is typically used in scenarios when conventional lending simply isn't an option. Weather that be from appraisal issues, credit, or other factors. hope that helps. Love to chat in more detail. Ill send you a PM. Cheers!

Post: Should I get a Pre-approval first?

Tyler CotterPosted
  • Posts 32
  • Votes 12

Hey Alam, 

To answer your question, Yes. This provides you with a loan specifics, price ranges, and ultimately allows you to know your numbers. Further, with the market being so competitive, agents are going to want you have an approval to know your a "serious" buyer. Hope that helps.