All Forum Posts by: Zara Ryan

Same concerns with the document here as well- seems to be a blanket release of RTR that they call a settlement. 

Hi Joe! It's the unicorn property right now :) But yes, typically if you live in one unit, you can get a government backed (FHA, VA) loan as long as the property has no more than 4 units. Great way to start- a house hack!

Thanks @Scott Wolf.  It’s a good question- I’ll try to edit my original post-the bank is setting out some complicated criteria that I’m not sure I can meet at this point, but after improvements, the place will qualify easily.  So basically, I’m thinking that the hard money could be worth it because it would get it to the place of  increased cash flow so much faster.

1.Bank wants to put the park owned homes on a separate, shorter note. I plan to sell these off and make the park mostly lot rent.

2. I need big cash reserves + down payment + money for Cap Ex- I don’t have enough cash for all 3 “pots” of money, but would after a year of cash flow

3. I need to get the park under professional, 3rd party management or bring on an experienced partner.

How would you finance this value add MHP? Here are the details:

-28 lots currently rented, 32 more are cleared with utilities run 

-of the 28, 15 are park owned homes, 13 are lot rent only

- The plan is to get the other 32 upgraded with electric and ready to rent over the next 12-24 months, increasing NOI by 8000/month

- so far, (commercial) financing is available with only a 3 or 5 year fixed period.  Once the upgrades are completed, and lots rented, terms would be significantly better (would meet criteria for a Fannie backed loan program).

- would you look for a HML for 2 years? Take the bank financing offered and refi after 3 -5 years?. Do HML lenders lend on mobile home parks? What kind of leverage is typical?

Looking for any advice you can offer, TIA!

Hello BP! I’m looking for ideas on how best to fund the purchase of a 4 unit bldg. it has 3900 sq ft two 2BR/2 BA and two 2 BR/ 1 BA.  All in newly renovated condition, great neighborhood- two are furnished as STRs and ready to go. It’s in Alabama in a growing area.

My husband and I would like to finance with a 30 yr fixed if possible. We're short about 30k for the down payment if we purchase in our personal name. If we purchase in our LLC, we have the funds for down payment, but I don't think the terms will be as good. Is there a way to get a short term private money loan for just this 30k down payment? Or a way to get a 30 year fixed in the LLC name? This property will cash flow REALLY well, so we can't pass it up.

We currently own our primary residence and 5 additional SFH, recently sold a sixth. Two are STRs, 4 are LTRs. We've been investing since 2015, and experienced with both LTR and STR investing. This purchase would be used as two units STR and two units LTR.

-Purchase price is $475k
-expected gross rents 4440/month if all are LTR, more for STR
-Current rents per month: 1 is $850, 2 are STR, one owner occupied

-Fair market rents per month: $1020-1200 as LTR

-We have an existing relationship with an excellent professional property manager

-We have excellent credit and high salaried  W2 income (attorney)

Thankful for any advice you can offer!

Investment Info:

Single-family residence buy & hold investment in Winchester.

Purchase price: $219,000
Cash invested: $70,000

We use a 1031 exchange to purchase this single-family home in the downtown area of Winchester.

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

This home is located in an up-and-coming and walkable area of downtown. Cash flow was excellent on analysis.

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

This was an off market deal that my agent found for me. We pay the asking price

How did you finance this deal?

Commercial loan to my LLC

How did you add value to the deal?

We replace some plumbing and made some small repairs, but otherwise this home was turnkey.

What was the outcome?

We had a signed lease before we technically closed on the property.

Lessons learned? Challenges?

I was very thankful to have good cash reserves, as we did have some plumbing issues come up that did not appear in the home inspection.

Investment Info:

Single-family residence buy & hold investment in Nellysford.

Purchase price: $240,000
Cash invested: $30,000
Sale price: $460,000

Purchased this home as our second home with 10% down and rented it out on Airbnb. It consistently grossed over $50,000 per year in rental income and nearly doubled in value in three years.

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

We wanted to try investing in a short term rental, and this market had a low price of entry with high potential for 4 season rentals.

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

On the MLS with an agent.

How did you finance this deal?

30 year fixed second home mortgage

How did you add value to the deal?

We made some small cosmetic updates and began renting it as a short term rental.

What was the outcome?

We sold it three years after purchasing it for almost double what we paid, and we’re able to complete three 1031 exchanges into LTR in our local area.

Lessons learned? Challenges?

Short term rentals are a great way to increase cash flow, however they are labor-intensive, especially with a large home.

Investment Info:

Townhouse buy & hold investment in Winchester.

Purchase price: $240,000

We house hacked this one with a VA loan- no money down. Lived in it for almost 2 years and then moved out and rented it.

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

It was the least expensive way to begin investing in real estate with the best loan terms since it was owner occupied.

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

We went to a community with a real estate agent. It was on the MLS

How did you finance this deal?

VA loan, 30 year fixed

How did you add value to the deal?

It was new construction, but the price was low enough that rents cash flowed from the beginning.

Lessons learned? Challenges?

This was the deal that let us know that it was possible to make money investing in real estate. It helped us get started and built our confidence.

@Keith Chew I recently purchased my first Airbnb rental home, and during the search process I was able to ask sellers for their rental income and expense statements from the previous year if the home had been a rental. Since I was looking at similar properties, even if one home didn’t have data, I could compare it to others for which I did have data. I ended up purchasing at a ski resort in the Blue Ridge Mountains of Virginia, and the resort also rents several homes themselves directly to vacationers. My agent was able to pull those numbers for me as well, so if there’s a resort near where you’re looking it’s a great way to get real life numbers.