All Forum Posts by: AJ Exner

Hey Dayana,

Yeah, Miami is a tricky one. Honestly, I've seen some great numbers coming out of Jacksonville, but it would also depend on your familiarity with Baltimore. There are some good rents and potential for even Sec 8, but it depends on what you are comfortable with and where you have a team that could help with rehab.

Good luck!

Hey Sam,

Congratulations, hopefully you can work something out.

My recommendation would be working with a lender that is comfortable with seller financing and keep your cash to close at a minimum. If you can find that, I would recommend a rehab loan to help accommodate the repair costs and do a modified 'BRRRR', or just sell it when you are done.

Is this your first investment? 

Hey Axel, 

Would love to give my two cents if it would be helpful at all.

Peoria, IL - Probably the healthiest market of the three with a lot of middle-income rental rates available and opportunities for good cash flow. However, IL landlord/tenant laws are tough and are worth taking a deep dive into if you are going to invest

Lawton, OK - Good opportunity for sure as many mid-American towns like this are prime for investors. My only concern to look out for is that things can go 'rural' pretty quickly if you start venturing outside of town, and most lenders are going to put the brakes on financing if the appraisal lists the property as 'rural' (has to do with what they perceive as the availability of future tenants).

Watertown, NY - It probably is as good as you believe, but the lending licensing is pretty tricky up there, so its just  bit more difficult to find lenders that operate up there. Not much, but something to keep in mind.

They are all good options, I would also recommend a place where you are physically the closest to or can get to easily. Especially if you are out of Denton, Lawton might be the best bet for you.

Good luck! Would be happy to help however I can.

A lot of DSCR programs I'm familiar with don't cut back LTV like that until you get to 5+, generally 1-4 units are classified together with maybe some kind of rate adder for 2-4.

I do agree with @Patrick Roberts in the rate and terms department, but there should be some good lenders out there offering up 80% LTV on tri/quad plexes.

Good luck!

Hey Cosmo,

I do think there is a growing concern towards the reliability with section 8 with varying administrations right now. They have been historically reliable over the last few years but I am hearing some rumblings of reduced leverage, slight increase to rate, or some kind of minor tweak to DSCR lending with some programs.

Happy to jump on a call if you have any questions or concerns.

Good luck!

@Alex Patton

0% Origination is going to be tricky, is there a rate that you are ballparking that you are needing with your rent(s)?

75% won't be an issue, but 80% on a cash out refinance is rare, and I would be hard-pressed to see 80% with no origination on top of that.

Good luck!

Hey Laura,

So I can't help with the true GAP funding, but I might have some ideas on how I could help utilizing the seller financing and transitioning it to something long term. 

I shot over a DM, would love to connect and see if I could help.

Good luck!

Hey Casey,

3 at once sounds like a great time, hopefully the rehab has gone to plan and you've got some great tenants lined up. 

Are you planning on keeping everything (rehab and renting) done through a single entity or are you going to be bouncing your properties from one entity to another?

And how long has the rehabbing been taking? Wondering where you would land on the seasoning aspect of things.

Congrats on the transition to 'retirement'! Scaling well can make things more interesting, but putting good people around you would definitely help. 

My question would be, as you scale, what kind of debt-load are you comfortable with? If you want to solely use your own funds you could do that, or are you wanting to maximize your balance between using your own capital and the money from capital sources?

Good luck!

Hey Matt,

I am aware of a program that can do that, just shot you a DM