All Forum Posts by: Tyler Kesling

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?

@Jonathan Greene the property is out of state (I'm in a tri-state area). Should I try to find a realtor from the state the property is in? Are there any issues with agents working across state lines? I'm fairly certain the listing group is also the property manager so I'm not sure if that's a pro or a con. I can see both sides. I'm keeping my eye out of a 4plex to help reduce my, probably unreasonable, fear of vacancy risk but keeping my options open just to get started so a 2 for got my attention.     

I've spotted a package deal for two duplexes right next door to each other. I'm going to reach out to the broker but don't want to sound too much like the noob I am so I'm curious that since these are being sold together, will I have to look at two separate loans/closing cost or is there a way to do a package loan? If it's two mortgages, how common is it for a bank to do two at once for a new investor? Anything odd I should ask the broker since it's a package? Thanks in advance. 

@Joe Villeneuve . I hear what you're saying but as a new investors, I'm not going to be able to acquire 4 SFHs to start. I think after I have a few investments in my portfolio it won't be as big of a concern. 

I've been focusing on fourplexes as a first investment to spread vacancy risk but the inventory in my driving area is pretty low. I'd like to at least get something in escrow before the Spring. Would you recommend expanding my search area, wait it out, or look into duplexes in my current markets? As a new investor, a duplex gives me some pause because I'm afraid there might be long periods of vacancy where I'll have to come out of pocket to cover expenses. I don't know if that's a reasonable concern or do you just plan on "X" number of months and hold it in reserves? Thanks for any advice or guidance you can provide.