All Forum Posts by: Zach Scherschel

Hey Randy,

The numbers look good on this one and self-managed will definitely help. Only thing I'd add is you can also consider a different lending option like a 7/6 ARM to lower your interest rate. Ultimately, data shows that the majority of mortgages refi within 7.5 years and very few stick with a mortgage for a full 30-year term.

A 7/6 ARM may get you .5% back on your loan and also allow you to put 20% vs 25% down if that's something you're looking for as a lever. Your lender should be able to provide you a few different models for this. Great work on finding a fully leased property though, that's always a game changer!

Lots of good answers here and very much the same experience on my end. I've built a 10-unit portfolio in the last 2 years while working a full-time job. What I did/my 2 cents:

1. Find your initial metric(s) that determine whether you're even going to fully analyze and vet a property - whether that's cash flow, GRM, etc.

2. Streamline your analysis system - put together an initial spreadsheet that lets you quickly plug and play, I've furthered the speed of this by adding in some lightweight VBA, a "clear" button, that lets you plug and play to run analysis fast - finding your ways to speed up your own internal process is important. 

3. Have your process in place consistently - ie have your financing documents saved at all points in time, be ready to pull the trigger with pre-approvals locked in quickly or a lender that has proven they can quickly turn around a pre-approval and close for you. 

4. Seconding many other - build your team, get super close with your agent/management company and make it worth their time, don't ask them to analyze for you, come to them with the analysis only the deal you'd pull the trigger on and they will start to bring you other deals (off-market and others) + once you find a lender or two that are fast and have great customer service, stay in lock step with them - rates are rates, you might get a couple basis points from going through many but if you have one that is quick and responsive, make it worth their time and they'll make with worth yours. 

Keep up the good fight and the path to getting out of the 9 - 5!