All Forum Posts by: Breean Reyes

@Stephanie Irto thank you for the clarification! I may have to sit down with a lawyer to find out the pros and cons of different structures as I move forward, the commercial financing is not at all ideal.

Tge property has a 4 bed/ 2 bath home and a commercial building with 2 office units in it.

@Jeff Dulla it is owned by our LLC, we originally purchased through private lending but had to refi out by 3 years and we were blindsided a bit by our mortgage terms and it unfortunately ate up all of our cash flow. We are now looking for another property and trying to refi our existing one, but I'm a bit discouraged by the lending terms I'm being offered, especially since the area I'm in has low rents/income but high property prices, so the margins can be tough.

@Jeff Dulla I'm being told that the only type of loan available to me is commercial ( which I see is confusing since I used the word conventional, I just assumed that meant through a bank, especially since I'm being told "conventional" is only for my private residence and not allowed on investment property) Is this not typical? So far I've tried 2 local banks and a credit union with the same results.

I am currently checking around local banks to find out the way they finance rentals, and I am only being offered ARM or loans with a balloon payment, and getting them to finance for 20 years is even difficult, most of them are only offering 15 years. My question is: is this typical when financing conventional? I am also getting rates of between 5.19-5.39%

We are excited to get started!  Property prices are a bit elevated considering the low average income, so we're having to be picky and patient, and the banks aren't as willing to budge on the bank owned ones.  But patience is a virtue they say.  Our first purchase was an owner financed deal with 2 commercial spaces (both rented) and basically a blank slate building that we are turning into a 4 bed/2 bath house.  That project may have been a bit more than we were completely prepared for, but we're doing the work ourselves and will have a great equity return as well as good income.  

Thanks for the warm welcome!

My name is Breean and I live in the northwest corner of Montana. My husband and I purchased our first investment property in December, and we are now looking to get our second property while finishing up a remodel on one unit in the first.  We are mostly interested in Buy and Hold Investments, with an emphasis on multi-family units, but we are also considering the occasional flip when the market is right 

I found the Bigger Pockets podcasts on YouTube and am hooked, I'm so excited to have access to such an awesome community, especially being a newbie!