All Forum Posts by: Winston Covington

Sometimes there is nothing better than putting your own boots on the ground to check out a new area. Do your homework and research ahead of time to help reduce the risk of investing in a bad neighborhood. Speak with local Realtors and Property Managers to get a better feel for the area and rents. Also, call the local Police Dept. and speak with their Public Information Officer as they should be able to give you the crime stats.  Good luvk.

Brad, Peace of mind has no price tag. You don’t want to deal with the liability of selling a house with faulty wiring nor do you want to hide it. Do the right thing and replace the old wiring.  Adjust your sales price to reflect the cost and move forward.

I guarantee that you will feel better, sleep better and your reputation will be better.

b

HI Tariq,  Any financing with 5 or more units is considered commercial and with that, your financing options are not as good as residential financing.  I personally would go with residential financing and go with one loan per property. Not only should you come out with better financing ( rate, costs and terms ) you will be in a better position should you ever be in a bind and need to liquidate.  If hard times hit, you could sell one and keep one vs having to sell both.  good luck.

Hi Jayson, most Residential non-owner occupied financing will run you anywhere from .50 point to a full 1.00% or higher rate than traditional owner occupied financing. * Note * Investor financing is getting tougher to get + the cash reserves that most lenders are requiring is getting much more stringent.

Hi Ramona, I don’t own any investment properties in Gladsen but I own properties in Huntsville & Madison. Let me know if I can help you.

Ok, with that in mind I would take advantage of current interest rates...refinance pulling some cash out and go buy another property.  You have sufficient equity to pull out a strong down payment while still having your existing property provide you with a good amount of positive cash flow.  

Aaron, it depends on your goals. If you're younger and looking towards building up your portfolio, it might be time to sell and 1031 exchange your way into more property.  If you're older and since you really like the performance of this investment, you might consider using that positive cash flow to pay it off sooner.  What's more important, cash flow or appreciation ?

Hi Jeff,

Most lenders require that an Investor hold a property a minimum of 6 to 12 months before they will allow a refinance. Non-owner occupied financing is getting harder to get especially if you want to pull cash out of the deal.  You would have a better chance if it was an owner occupied refinance.  Good luck.

     I’ve been in Real Estate as a licensed and active Realtor / Investor since  1978.

Through the years and several market swings, I have observed all types of behaviors

by Lenders. Right now, every Loan Officer I know is swamped with purchases and  

refinancing.

     Financing for investors is getting tougher to get and the cash reserve requirements 

have gotten much more stringent.  A Lender recently told me that Investors are now

required to have a minimum of 6 to12 months cash reserves for each property in their

portfolio.   For Investors with several properties, that requirement can be difficult.

     I would suggest speaking with some of the Lender affiliates with Bigger Pockets and 

then post a request for Lender referrals from our Bigger Pockets family.

     Good luck and I’m sure that you will find a good lender for your portfolio with a

little research.

I can’t speak for Texas but I can tell you that in California (and many other states ) the 

Seller would be the Estate of ——————————( your Grandma’s name ). You can also call

your Title Insurance Company and speak to one of their Title Officers to confirm.