All Forum Posts by: Tyler Weinrich

@Mathew Gunkel I pulled some of that sold/historical data for myself in OKC area and put every cash sale on a map. You can even get fancy with it and generate a heat map showing the "hot" spots for cash purchases. Could do the same for MF or something similar. 

With access to the MLS your Realtor can pull any multi-family that has sold. They should be able to slice that anyway they want to: by time frame, by units, by area, by financing, etc.

Might be worth a quick look to see if any MF on the market expired (listed but didn't sell) in the last year or so also. 

Now, whether that breaks any MLS rules, I can't say for sure. Probably frowned upon a little bit to provide contact information (personal info) derived from the MLS data to someone looking to market to those owners.

agreed with @Rhett Tullis 

Lot of good places in OK. Getting your budget and property criteria down would help find a location. What type of property do you want to rent? Who do you want to rent to? How much money do you have for capital? Are you wanting to be close to your properties?

Not sure about this one. I'm fairly new but if you are pulling in $1880 NOI, how much of that would be used up by the P&I?

Let's say you got a 30yr note at 6%, it would be about $1550 a month. That leaves you with $330/month cash flow for 6 doors. That doesn't seem good. 

Even if the loan was at 5% (30 years), you'd be out ~$1400/month leaving you with $480 cash flow. I know those probably aren't the most realistic loan terms seeing as how it's commercial and you are talking about a different loan all together. Just looking at it from one perspective as I have 0 experience with commercial loans.

If you did buy it with cash though, it's over $300/door which isn't bad at all for one big purchase. 

Completely off topic but have you thought about partnering up with someone to do a multi-unit purchase like this or larger? There are a few decent multi-units in OKC I've been looking at but not sure I'd want to go it alone just yet. 

Sounds like a good idea. Interested to see if anyone has tried it

No actual rentals yet so keep that in mind, just offering what I would do in this situation.

• Don't panic just yet. It's good that you've noticed the lower call volume 3 days in, but 3 days doesn't necessarily make an actionable trend. If it does this for a week, then react.
• Having said to not panic, look at the ads around that area to see what comps are trying to rent for. Find what past rentals have gone for in the last 6 months or so. Are they close to what you have? If yes, then continue to not panic. If no and past/current rental comps are lower than yours, panic. If no and past/current rental comps are higher than yours, don't panic some more.
• Make sure you have a lot of photos on property in ads. If it is higher-end, show it off.
• Check out some of your competitions ads. What are they doing that you aren't? Might be nothing. Might be you need to market the property better (more exciting text, certain details, lower deposit).
• Consider lowering deposit. This is probably my loosest piece of advice. If the property is high-end, you will attract good renters (mostly, you'll get bad ones too though). Good renters do less damage and are more reliable so maybe you can lighten the deposit a bit? I'm not even sure I would do this, just saying it's an option.

Been doing research for a while on the site and other places. At the point where we, wife and I, are ready to purchase a house. Or, we thought we were. We've been actively looking, found a few deals that meet our criteria, but we are hesitating to pull the trigger.

The reason we are hesitating is we keep rethinking our long-term strategy. We'll get it figured out, then think about it again and lose faith in our plans only to have to re-hash it or come up with a new one. We've gotten to the point of submitting offers and not responding to counters because of this.

I'm writing here to get some advice. Below is my scenario and questions or direction we could use help with.

Our situation:

• Primary residence mortgage under both our names at ~95% loan to value (PMI is being paid)
• $100k capital to invest at this point
• Could save/invest only about $5-7k per year from our current income
• Goal is to create passive income down the road to free us up from the corporate chains, maximize our current capital, and do so as quickly as we can. Don't mistake that for being hasty, rather anxious and efficient.

Our Initial plan:

• Purchase 3-5 properties over next 2 years (end of 2016) using $80k - $85k. SFR's. Actual number depends on cost of homes ($50 - $80k ideal).
• After these are acquired, use cash flow to pay down one mortgage, allowing us to start a new one. Save up down payment. Purchase new property. Pay another down and so on.
  • This is the fork in the road for us and I'm sure others. We can either funnel cash into paying down mortgage(s) or save up cash for more properties (financing on these is a bit fuzzy). Question on this below.
• Continue acquiring new properties as often as we can.

The questions:

• Why wouldn't we just try to pay off most/all of our current mortgage first with cash flow? That is after using up initial capital. The idea keeps coming up that we are going to end up paying a lot of money to bank in interest on that mortgage (~$100k), so it stands to reason that money invested in that would prevent us from paying this interest, saving us ~$100k let's say. So we buy 3-4 houses with our capital, funnel all cash flow into primary mortgage to pay that off within 7-8 years freeing up another conventional financing purchase and allowing us to use the equity in primary home to fund more purchases. This doesn't necessarily feel right though. I haven't been able to prove it in numbers that trying to acquire more cash flowing properties would be better. Maybe I'm just over thinking it but this seems like a slower path. Slower because we could ignore the larger, primary mortgage and pay down smaller investment property mortgages.
• How difficult is it to get a blanket loan from a bank? It gets thrown around on podcasts and forums a lot as a go-to strategy once you hit 4 or 10 mortgages. Has anyone gotten to this point and been unable to acquire such a loan and gotten stuck in the mud? Does anyone have a story of not even using this strategy and just paying down mortgages as quickly as you can they could share? Or, using a different strategy all together?
• Does anyone have any insight on paying down mortgages before finding a new home versus trying to focus on rapid growth? Specifically, what has worked better in your case and why? Which would you do today if you could start over? Really not looking for "the answer", just want to hear some opinions on it. If anyone has numbers on this, I'd love to see them.

Does anyone have any insight into the effect of apartment complexes on rent prices and ability to rent SFH in the same town or area of city? More specifically there are complexes of 30-40 buildings (each having 6 units) about 1/2 to 1 mile from some potential SFH investments. I guess I'm asking a few things; 1>) is it better to stay away from these areas where there is a high concentration of apartments? 2) does the existence of these apartments mean there should be ample rental business? 3)do you find it hard to rent a SFH when so many 2 bed apartments are cheaper and in same area?

Been doing some research on the site and in my market to learn the ropes. Started talking to a few banks about financing my first investment purchases and had a question from this. One in particular is requiring 6 month's worth of reserves that will cover the mortgage in the case it doesn't get rented. Is this typical? Or is this just not a very investor friendly bank?

It makes sense for them to want a little more security on the loan but I just haven't heard of that from reading the forums yet. Just curious

Thanks for the welcome! I've been catching up on the podcasts and have some keywords set up which is a pretty cool feature.

Love all the information and people here so far. Trying to lay out a plan and get familiar with working the numbers at this point. I am looking into buy and hold but just trying to nail down the entire strategy. The podcast and forums have been a huge help for this, just need to do some more researching and probably post a question or two to get me rolling.