All Forum Posts by: Tyler Kesling

@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. 

@Steve K. I've got access to some realtor friends that I could probably get some comps from. I don't think they have the drive I'm looking for as I try to build and grow a portfolio so I don't think I'd trust them to build a partnership with but, yes, that's probably a good idea. The sign says $200K OBO and somewhere I read the owner and his wife have moved to Ecuador and just done with being long distance landlords. If income, expenses, and comps look legit, I'm thinking about $160 and hoping I can land it somewhere around $175K. I'm in a very small market where the average house price is only about $140K. Recently sold MF on Zillow are pretty much inline with the asking but I will definitely get a professional opinion. Thanks for advice.

@Justin Moy @Gino Barbaro Thanks for the advice, and the link, guys. I think I will just reach out directly and work with a title company, if it goes that far. I keeping forgetting that I actually had a SFH that I did a LTO and used a title company to close. Apparently it wasn't that big of deal since it didn't make an impression on me enough to remember I did that. There's a story there but anyway...

 From what I've been able to lurk around and find out, apparently the owner has moved to Ecuador and very motivated. 

While I've got you...They've got an asking price and a total monthly rent listed on the sign. I can estimate most of the cost, taxes, insurance, utilities, PM fees, and such and I know that should be provided in the expenses but when it comes to the actual maintenance of the property, what strategy do you normally use? From the looks of the sign, I'm not expecting there to be detailed reports on facility maintenance. Depending on what model I use, I obviously get a different DSCR. My financing strategy would be to HELOC the down payment and repairs then, as quickly as possible, do a DSCR to bring the mortgage together and lock in a lower interest rate. My little calculator tells me I should still be better than 1.25 in any scenario but just thought I'd check with some more experienced folks to have a better idea of what to expect.

@Jay Hurst Thanks Jay. This actually helps me narrow down my search for properties that meet my goals and clears up a lot of noise. I'm not sure how to articulate it but, basically this bit of knowledge saves me a bunch of time and kind of surprised it hasn't come up in any of the books, articles, or videos I've been learning from. Thanks again.  

If you buy a portfolio of properties, can you live in one of the SFH and get a Fannie loan? My example is 3 SFH and 1 Duplex. I guess the question would be something about how portfolios are treated during financing or maybe I'm not seeing it from the correct perspective. Thanks.

How would you approach trying to find "the right" MF agent? Just hit up as many brokers in the area as I can find and have them refer MF agents? I've got plenty of information on questions to ask but how did you interview your first brokers?  

Good morning,

Still a newbie but I've found a four in my area that is "For Sale By Owner" that my initial underwriting, from the info I can find, shows it to be a property that would fit my CoC and CF criteria. I'm not sure if I should reach out to the seller directly or if I should work this through a broker. I'm curious how some of you found your brokers and what the process was like of interviewing? If I call the seller directly, is it taboo to start asking for financials or should I just ask if I can send them an LOI?