All Forum Posts by: Wade Luhman

 Hi Joanne,

I have several properties in the St Cloud area and would be happy to connect. Please reach out if intereseted.

Wade

Thanks everyone for the feedback. The initial interest rate numbers I received had a 30 year conventional mortgage at ~6.25% and a 5 year commercial with a 20 year ammoritzation at 4.52%. The gap in rates is what got me thinking, but also the fact that I would expect to refi in 5-10 years to pull more equity out anyway. The refi plan was not trying to predict interest rates. My goal is to get 10-15 doors producing cashflow in the next 5-8 years, not to scale super fast or build an empire as I am fairly conservative and am looking for more time flexibility. I like the BRRRR method, but didn't really want a big rehab project on the first one because time is my most limited resource right now. It could be a good optoin for the next one though.

@Conner Olsen I like that thought process and is most likely what I will follow.

What is a good general strategy for thinking about when to refi a rental property to pull out equity that you can use to continue to scale your business? Are you doing it based on time and the current financial product you have? Or when you hit a certain equity amount? I understand the real answer is “it depends”, so I’m not really looking for that. I’m closing on my first property in a month with cash and plan to finance it after that to pull my cash back out for the next one. I like the comfort of a 30-year conventional, but in reality, I expect to refi well before the 30 years is up. I’m currently thinking a commercial loan with a 7-year fixed rate and a 25-year amortization and just refinancing before the 7 years is up.Thanks.

Does anyone have a STR on a lake in MN outside of the Twin Cities metro area? I'm curious what people are getting for occupancy rates for cabin/lake rentals. I assume close to 100% during the summer months and much less in the winter. What is your total occupancy for the year? Thanks

Hi Everyone,

When running your numbers on single family homes for long term rentals do you change your regular maintenance and CapEx reserve numbers when looking at homes of different ages? For example, a home built in the 1950's/1960's versus one built in the 1980's/1990's (assume both are in decent condition that could be rented as-is, but have not been remodeled).

I realize there can be a lot of factors that play into this, but I have currently been running the numbers about the same way for almost all the properties I have been looking at. I feel that when I start adjusting things I am trying to "make" a deal when the numbers don't look that good. I am currently budgeting for 10% of monthly rent for CapEx reserves and 7.5% for regular maintenance, but don't have any properties yet to compare real numbers.

Thanks

 Thanks Andrew!

 Thanks Deena!

 Thanks Dan. I found the event on Facebook. I likely won't be able to make the one this week. But will keep an eye out for future events.

 Thanks Brandon!

 Thanks Jay!