All Forum Posts by: Tyler Kesling

House was listed $142K. The current owner bought it for $30K and I know they had to clean up a lot of title work and started doing repairs. I they accepted an offer of $118K from my brother but since he couldn't get the loan, we're starting over. I'm offering $115K cash and can close as fast at the inspections and title work can be done. Am I getting greedy to ask for an additional seller credit at closing to help offset some of repairs needed? There is a significant crack in an outside wall of the foundation that I still need to have someone evaluate. My gut feeling is it's going to cost around $4,000 to repair and has been there for ages. I was thinking of asking for an additional $2500 towards repairs. 

On the lease, he'll pay me $100/m over my HELOC payment and all other expenses, including the refi cost, inspections, title work, etc...

I'll refi as soon as possible and then have my HELOC available for my second property.

I'm getting closer to being an investor!
 

I'm still looking for my first property and I have a lead, sort of. My brother needs to move back to the area and found a duplex fixer upper. He wants to live in one and use the other for his studio. He and the seller have agreed on $118K. His credit score is fine but his income is showing too low to get the loan, so I though maybe I could use my HELOC to make the purchase and do a Lease to Own. He has $50K to put down and plenty to do whatever renovations he would want to make. I'm not concerned about his being able to make the payments and trust him to do so. I'm struggling a little bit on deciding the best agreement to make sure I can get some cash flow, payback the HELOC, and not drive the new mortgage up too much with the Refi out of the HELOC. Thoughts? How would you structure this?

@Ken M. , yeah, I've been working on it. I'm just trying to find a 2-4plex that cash flows in this area. One issue I'm running into is my confidence in underwriting all the expenses, and using my HELOC for the down payment. I'm not terrible afraid of being 100% leveraged but carrying the total DS on the HELOC and mortgage is making it tough. The search continues...

Completely new to this so my 2025 goals are to make my first purchase of a cash-flowing 2-4 unit multifamily in my local market, refine my systems, and to continue to learn and build connections.  

About 3 months ago I downloaded my first audiobook, "Multi-family Millions" by Dave Lindahl, and started this journey. I know this might seem insignificant to experienced investors, but I just got the appraisal back from the bank this week and have access to about $145K in a HELOC so I'm creating CCCs around this number. I'm taking my first steps. I making this happen. I'm building my systems. I'm building a team. I have my vision board directly across from my desk in my office and I see it everyday, all day. This is my year.

Just curious if there is a thread on here anywhere that someone could link to that has bunch of fully underwritten deals by experienced investors? I see a lot where newbies are asking for help but as newbies, it feels like they are missing a lot details. I'd like to see the templates others are using to accurately project Cash on Cash and Cash Flow. 

@Jaycee Greene I met with the credit union and waiting on an appraisal but pretty certain I'll access to around $80K @ 8%. To get any cashflow I think I need to be looking for something around $250K, that doesn't need a lot of up front rehab, to give me enough extra for closing and reserves, and in a submarket that will gross 3000/m. With the HELOC, I think that will still puts me in the black about $125. I think that losing the HELOC should create a little better cash flow but at the very least it will put some stability into my debt service.

Newbie here- I haven't identified any specific assets yet but I'm looking at 4plex or smaller. My strategy for getting started is to use a HELOC for my down payment and all other upfront cost and reserves, then refinance as soon as possible to get the fixed, lower, interest rate. I'm just waiting for the credit union to get the appraisal setup so I know exactly how much in funds I have available. I know cash flow is tough to come by right now, even harder when adding in the HELOC to the DS, so I'm curious about what it would take to refinance a property on closing day? I think I read about some deals this strategy in one of Ken McElroy's books but not sure if that's even a real option or just a good line to add to a book. What criteria would you be looking for in order to qualify and what are the chances of pulling this off?

Thanks

@Scott Allen they just came on the market 2 days ago. I really just want to see if I can get enough info to get the NOI before I proceed too far. Taking the market rents, accounting for a 10% vacancy, the debt service, PM fees and everything else, it seems like I should be able to cash flow about $600 for the 4 doors combined. I'm just curious what leases are in place, what the income and expenses are, and what the reason for selling is. This would be my first attempt trying to submit an LOI.

@Jay Hurst how hard, or common, is it to get simultaneous loans on the two properties closed together? Maybe I'm putting the cart before the horse so knowing the closing cost would be similar it shouldn't impact my underwriting that much either way. 

The property is Huntington WV and is exactly 25 mins from where I'm standing, so I'm only calling it out of state because it technically is, but it's a location I'm fairly familiar and travel to often. Huntington is a little warmer market than Ashland and has a lot more property options. I'm not opposed to investing in Ashland, but Huntington would be my first choice due to the population, demand, growth, college, affordability, and the list goes on and on. So unless there are big hurdles to buying across state lines, I don't really have any concerns of doing whatever I can on my own and outsourcing the rest to the folks over there. 

Thanks for the help, I'll take a look at local agents and see if they can help across the line and see what my local CU and other locals can do with a portfolio loan. 

I'm guessing national or regional banks don't really do that?