All Forum Posts by: Andrew Blanks

Anyone have recommendations for primary residence homeowners insurance in North Carolina. Raleigh/Durham area. In Virginia we have a company called Mutual Assurance Society of VA. You pay a higher premium the first year and if you have no claims the premium drops insanely low after the first year. But not many people know about that company. Just looking for any good suggestions. TIA!

@Eric Veronica thanks for your response.  I've done a little more digging with my lender this morning.  He said I would need either a CPA audited YTD and 2019 P&L, or the simpler option would be a "self-audited" P&L but that since we are using rental income to qualify, we would need a year's worth of reserves for every outstanding mortgage.  So if our total monthly P&I payments between all current mortgages is $8,000, we would need at least $96,000 in cash reserves. Thoughts?

I spoke with my lender last week and he told me that as of I believe June 4th or so, Fannie edited their guidelines and it is basically impossible for a self employed (no W2) person to get conventional financing right now. Even primary res. He’s been doing this 25 years and only ever given me excellent advice. I still found it hard to believe so I called up a random internet mortgage company. Aimloan.com. They said the same thing. They said the same thing. Spoke with a closing attorney who told me the same thing. Any thoughts on this? Has anyone out there who is completely self employed (no W2 income) closed a conventional mortgage with an application date after 6/4/20? Thanks in advance!

@Joe Splitrock

Not sure. Definitely not a CPA. figured you could claim it as a business expense. Similar to a home office, etc. not tied to a particular property, but to the overall business

@Joe Splitrock

Can’t the “use” be to provide liquidity while looking for deals for your business? Also I would assume you could consider at least a portion of it to as “cash reserves” for your other properties? Just a thought

I feel like trying to single handedly turn a neighborhood around is a huge risk and overall not a good idea. The area is either going to experience natural growth and rehab, or it’s not. Unless you can buy an entire neighborhood/zip code...

@Shaun Weekes thanks. I thought that was probably the case with the Fannie loan. Our concerns are we can't seem to find longer than 20 year Amort. and more than 75% LTV. Are we just not talking to enough banks? Also, what would be the downside of individual loans on the separate properties? Higher costs? Thanks!

First post here!  My brother and I have a portfolio under contract in Charleston, SC which includes a 14 unit complex as well as 3 duplexes and 1 triplex.  It is being sold all together as one package.  Purchase price is $1 million.  We would like to finance 80% and have as long of an amortization as possible.  This loan amount and the duplexes/triplexes being included seem to make this a tricky loan.  The total portfolio appraised for $1,285,000 earlier this.  Fully occupied and cash flowing.  Not planning on doing major renovations.  14 unit is class B-, other units probably class C.  We may want to sell off a couple of the duplexes/triplex.  Any advice on the loan strategy here?  I see that Fannie has loans starting at $750k but don't know how the duplexes/triplex affect this?  Seems like a refi in a year or less may be beneficial with the instant equity at closing.  Thanks in advance.

We have used Luxury Vinyl Plank from Home Depot. W narrowed down the colors to all of our acceptable choices and worked with the Pro Desk to send all of our acceptable colors to the "Bid Room".  Each color comes back from corporate at a different price point but we were able to find one at around a 30% discount from the in store advertised price. So far so good but it's only been about a year.  A little nervous as we sorta went "all in" and started using it on every one of our rehabs without a long term test. Fingers crossed.