New Member, Omaha NE - ready to start REI - Mortgage advice?

New Member, Omaha NE - ready to start REI - Mortgage advice?

Elkhorn, NE · Member since 2015 · 5 posts · 0 votes

Well here is the question...I am looking for advice and strategies that will allow me to maximize the total number of rentals that I could hope to obtain this coming year. 

Here is a brief background but would be happy to add as needed, thank you for reading! 

Well I always knew I would end up in the REI world...got here a little later than I thought but I am ready to put in some real time and effort into this endeavor. Through a few years of hard work and sacrifice I believe I am now in a pretty good position financially to get started.

I am specifically interested in buy and hold strategies. Looking for exceptional deals that we can add value to and rent out. The basic BRRR strategy is very intriguing at the moment although I don't have 100% of my time available to oversee massive reno projects involving complete tear down, but would rather stick to basic cosmetic upgrades (new kitchen, flooring paint basic landscape etc)

We currently own our personal home with a fair amount of available equity, approx. 200k which I will likely access via HELOC here as soon as I complete my due diligence in locating lenders here locally...starting from scratch but have called on 2 smaller banks so far that have made a couple of interesting offers both at about 80% LTV for reference...first was a 4.5 - 4.75 fixed rate 5 year interest only but seemed to have a lot of extra fees initially totaling about 1k while the other was 2.99 for 12 months fixed then prime plus .5 for additional 4 years. I will keep looking but what is the best I should expect or hope to find?

I am also very interested in conventional and other funding options that would allow me to amass the most properties possible. The hurdle I foresee is quickly reaching a DTI level (currently just under 25%) that would make traditional funding a challenge as I understand it often takes up to a year for them to recognize your rental income as actual income.

I have never owned a rental property before and I am assuming this will also not play well to lenders as they might not automatically assume that I am a very responsible and capable real estate manager. 

Ideally by this time next year I would like to own 6-10 cash flowing properties in the 100K each range with about 25% of my money vested in each. This is a very general statement of course, subject to change, but just hope to illustrate a basic picture of what I might like to do keeping in mind I am still in the extensive research phase. 

Aside from the equity in my personal residence,  I also have excellent credit, high W2 earnings as well as other self employed income as well as self directed investments accounts and some liquid assets as well. I guess my point is I really am excited to get started but I want to be sure that the first or second financing deals that I might do, don't hinder my ability to get and acquire additional funding for more properties. 

Any and all advice very much appreciated, especially recommendations from locals who have had success in the Omaha market.  I hope to one day be able to share my successes and advice to future members, thanks again. 

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  • Owen DashnerPro Member
    Lender · Omaha, NE · Member since 2008 · 1k+ posts · 1k+ votes
    10y

    Hi Jake, you might try Mona Cordel at American Interstate Bank.

    (402) 289-2551 Ext. 213

    They (as of a couple months ago) would do up to 85% LTV. Not sure of current rates, but they had a 4.25% fixed over 9 years (20 yr am.) with adjustments on the 3rd and 6th years based on prime. Great to work with. You can also do BRRR with 85% LTV based on new appraisal after rehab. No seasoning requirements.

    Good luck man- shoot me a PM if you want any more info or have questions.

  • Elkhorn, NE · Member since 2015 · 5 posts · 0 votes
    10y

    @Owen Dashner Thank you for the reply...Will definitely touch base with them to see what they currently have to offer. Very interested in the BRRR with no seasoning requirements, this would certainly be helpful.

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