All Forum Posts by: Walter Anderson

Also thanks! @Andrew Neal

Thanks @Suzan Hampton, some other info I forgot to mention that I just didn’t know going into my first deal (I didn’t know about bigger pockets then). 

1. On rental properties for bank loans (conventional loans) you can’t  use gifted money (aka you have to show that you have earned all of your down payment). The way around this is if you get a big gift from a relative or anyone wait like more than 90 days or more before you try to get a loan. I believe most banks only go back 3 months and look at all money that you have made in those months. If Money is there before the 3 months they usually don’t look at how you obtained those founds. I had 10k of gifted money at this time I couldn’t use on first deal ( I received it like a month and a half before the deal). I was still ok because I came to the deal with 20 something k but half of my founds I couldn’t use for deal.

2. You need proof of reserves for rental properties (at least for my conventional loan). For this deal I needed 1500 of reserves and the money couldn’t be gifted. So I had somewhat of a problem in that I could only use about 10k of my 20k and it was a bit tight to come up with the 1500 reserve non gifted money to go with the non gifted down payment. Everything worked out and my lender for this deal David Brown at Cornerstone Mortage was amazing and went the extra mile to get this deal done. However it is good to know that you can’t use gifted money on a conventional loan.

Thanks, Timothy Young and Nathan G. I am closing on my third deal in about a week or so, the seller is doing some foundation work, and then we are getting a structural engineer to look at it. After the deal is done and I get a renter in I will post that one. My first year of real estate I did one deal. This is my second year and will have 2 this year. Next year January I am shooting for three deals. I encourage everyone to just do more this next year, even if it is buying your first rental.

I like Emanuel Blando and Brevin Woydziak. Brevin flipped his first house at 19 and owns or has a part in 9 deals. Emanuel has I think 6 or so rentals with a partner as well. They are investor freindly because they are investors. They aren’t on BP that I know of but I can get you contact info if needed. I have done lending with Arvest Bank (Shane Martin) haven’t had a problem and Cornerstone mortgage (Dave brown) both good in KC area for conventional loans. 

The cash flow on this one is $214 a month with 4% vacancy 7% repairs, 7% cap x and 8% property management. I bought it again with section 8 tenant. This tenant has been a bit more hands on then my first property, however my property management has been good to take care of most issues.

Thanks, Jonathan Roper, for the advice on Section 8 will get in touch with my property management. 

Thank you to Daniel Hyman Merrick Mott for the votes on this post! Wish you guys the best in real estate!

https://www.biggerpockets.com/forums/850/topics/647745-this-was-my-second-deal?highlight_post=3840615&page=1#p3840615

This should be link to my second deal.

Andres- 1.My cash flow from this deal is $182.22 a month setting aside 4% vacancy 7% for repairs 7% for cap x and 8% for property management. Rent is at 731 which is a little low for the area. I bought the house with a tenant and contract so I have just kept the terms. The contract is up at end of the year and I have the option of raising the rent (although I need to talk to property management about raising rent with section 8 tenants, and decide if I want to do that. I rent as well and I don’t want to be a harsh landlord. The tenant is section 8 but I haven’t had any problems.

Owen- 2. Property is in decent area it is close to a new Cerner building (more jobs to area, the area is transitioning at least I think.

Lee Ripma- 3. After this deal I did another buy and hold around same area a bit further south. I posted that somewhere. I am on my third buy and hold in south Kansas City area. I want to try the BRRR method next year.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $56,000
Cash invested: $11,819

3b 1 bath small family residence in south Kansas City.

What made you interested in investing in this type of deal?

I was in my second year of real estate investing and wanted to get anther deal under my belt. I knew about other methods but went with something I knew that was tried and true.

How did you find this deal and how did you negotiate it?

I used MLS with an agent

How did you finance this deal?

20% down conventional loan

How did you add value to the deal?

We will add concrete to the driveway. So far I haven't done much I negotiated a new roof and a new sewer in the buying process.

Lessons learned? Challenges?

I got better cash flow on my second property and also better ROI from using the bigger pocket calculators.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I used Brevin Woydziak, and Emanuel Blando as agents. They have been great in the KC area. I used Arvest Bank on the lending.