All Forum Posts by: Blake Garcia

@Tyler Moore

I would suggest getting into single family. I did until I had about a dozen. They are great to keep, refi, or sell for a larger transaction down payment. I kept mine until about 12 houses. I then bought a 16 unit apartment and slowly sold the houses that didn't fit as well. You'll get the debt pay-down and appreciation along the way.

@Charles Liu

I personally do the 20 year on mine. I am about to the point with apartments that it will be too tight for my comfort so I will be switching those to 30 going forward. The upside to the 30 is you have the option to pay extra principle to shorten the loan, but you have the flexibility to pay less during a vacancy or improvement phase. 

@Chris C.

Relationships. If you using a plumbing company and the same guy keeps coming he probably does side work. I've found 3 of my maintenance people after repeated calls through their company "jobs"

Meet them at property and small talk. It can go a long way

@Charlotte Chew

Check out buildium. It's minimum is around $50 but it allows online and deposits quickly. It also works like a quickbooks and you can pay venders through it. Auto Late fees pay for my membership

@Jessi Casey

You also have the option not financing to the max, maybe a 50% loan. It would keep the cashflow on the current and allow for a second down payment. I'd recommend doing the larger loan and keep a later property clear if you don't need the cash and want the security. A line of credit would give the best of both worlds.

It takes time but that's the best way to see true prices and availability. 

@Jeff Ferron

Rental income will be asked but appraisals will be based on comps for less than 4 units. If you have any quirks with income or assets or anything unusual save your time and go with a local bank. I threw them paperwork on mine for almost a month and after appraisal and all they came back and I missed debt to income by 1% after resubmitting info over and over. I did finally get a refund on my application fee. :)

I'd suggest going local and starting the process with someone in the area if you believe that's where you'll invest.  

I use buildium. Accept credit, debit, with fees or ach for $0.50 each. It keeps all book keeping together and i get my payments next day once the account has been verified

@Mike Dusenka

 You're correct on the equity number. What's the time frame on this from purchase to refi? You may have a seasoning issue depending on the lender.

Assuming the condition of property is good.... Yes. Be sure to check the unknowns, roof age, hvac, plumbing. Any of these will eat your lunch if worse condition than expected. Management style or unknown expenses can skew a cap rate either direction by 5% or more. 

If costs stay constant and your rent increases by $25 per door annually you're looking at a built in net income increase of $7200. By year 3-5 you'll have an excellent spread and cash to make improvements if necessary. Or if it's in great condition it'll be definitely in good position for a cash out refi. 

That's my current situation, 3 year stabilizing with low interest cash out. I'm on the hunt for a next property which should double my portfolio.

 I am sending you a spreadsheet I work all my deals on for you to use.