All Forum Posts by: Wade Wisner

Hey Devin, Thanks so much for the info. Are DSCR loans just for SF purchases, or can it be used for MFR or commercial properties? Wade

I have never done a DCRS loan and have little knowledge of how they work and in what situations they can be used.  Can anyone out these describe them to me with limitations/advantages to having one?  Thanks

Thanks Dave.  I look forward to hearing from them.

Thanks Sophia for taking the time to read my post.

Something I would suggest that you look into is some markets with military bases for market rate rentals.  I did a couple of fix-n-flip in Warner Robins GA which has Robbins AFB and the rents are really good.  You can definitely get 1% deals.  You could also look in the Pensacola, Tallahassee area northwest Florida and I think that you might find the same kind of above average rental rates

I tend to steer clear of Section 8 particularly if I have decent properties as they are the lowest level of renters and don't take care of much.  Also you have the government regulations that go along with Section 8, which I would not want to deal with either.  I am just a free market real estate investor, where other's may love Section 8.  Too each his/her own

I agree with other posters that this is a pretty large deal for a 1st one.  Also, you have a lot of work to do to determine if this is a money maker or a dog!!  Complete proforma with assumptions for all income and expenses.  Make sure that you include a reasonable vacancy rate and management fee as your time should not be free in this.  If your returns on investment are not in the range of 6% or higher for no debt and higher if leveraged keep looking.  Also  if the property has been on the market for that long, I would be wanting to know WHY.  If is still looked like a decent deal my initial offer would be quite a bit lower to start and slow to come up.  Good luck and be very careful!! There is a lot that can go wrong with this.

You are right about renting with a pool.  That can get pretty expensive and you would need to have a lease clause that the pool is professionally maintained throughout the lease period and shut down for winter months if your climate requires that.  If you were free-and-clear on the property you could sell with a seller take-back and make good money on your equity, but with a loan you are limited. I would go for Scenario 1 and sell and reinvest in other properties are you go forward.  Good luck.  Wade

I have done this same thing with a fix-n-flip house in Baltimore.  It was never rented and I exchanged it for a multi-tenant office property in Knoxville, Tn.  Worked great.

Actually I do work with agents who are also investors and it does have some advantages in that they tend to look at properties with more of and investors eye and I think that it can help them in talking to sellers.  Mostly it has worked ok.  What market are you shopping?

Hey Danny,  Are the agents that you are calling initially in the market area where you are looking to buy, or are they elsewhere and referring you to another agent within their company for a referral fee?  If so you might want to find your own agent by other means.  Some of the ways I look for agents it to research sole properties in my intended market and see who those listing agents were.  You could contact them and they might be better able to represent you a a buyer's agent, or refer you to other good reputable agents in the area.  You might also look for agents who are also investors that would have a better fix on the area, but you might find them to be in competition with you for property.  Downside.

You definitely want and agent who works for you so if they are not available to show you property whenever you can view it is not a good sign. How quickly they respond back to you is also a good measure of their hunger to get you a deal.  Finding a good agent makes a lot of difference in a successful purchase so go with your gut and ask good questions, get referrals from them.  Good luck. Wade