All Forum Posts by: Carini Rochester

Quote from @Helena Cragg:

My traditional loan officers have not had access to DSCR loan options so I have found it more difficult to find local folks in this niche.

Inquire at local banks, community banks. ie Not Chase. Not Keybank. Not BOA. Local! Name of City Community Bank. Best of luck!

Quote from @Nicholas J Mancini:

Thank you very much for the info… I have been reading up on it and going into this I thought I had one year to execute the 1031. However it looks like I have to set this up prior to closing and then have 45 days to find the property. Then execute this 180 days after that? So I presume loop my account in on this…. 

Be sure to have your agreement in place with your Q.I. prior to selling. I used Dave Foster this past year. Very professional. He and his people were very good to work with.

I would turn this over to my insurance company. They will decide to either pay or fight. They have lawyers. I don't think you need a lawyer.

@Chester Davis Nice well written and well thought out goals and objectives! "getting my wife's enthusiastic mutual agreement" I love it! No, I don't have a chart or a spreadsheet. I have just one comment. You want to start "cash only." I'm not completely sure what you mean by that, but reading between the lines I'm thinking that you mean that you will use no debt (You will pay, up front, 100% of the purchase price. You will not have a mortgage.) The layman, the non-investor, has the (incorrect) impression that this strategy is synonymous with "low risk." There are many posts on this site where people more knowledgeable than me explain the error in that thinking. Search out those posts. Basically the thinking goes that you are only risking the money you put into it. If you buy a $200,000 property at 20% down, you are only risking $40,000, the bank is risking the other $160,000. The lower the down payment, the lower the risk. Risk is mitigated, in my opinion, by excellent tenant selection, and vigilant tenant control. I'm not sure how you put that into your spreadsheet. Your plan of pulling equity for the next acquisition (a down payment, I presume) is a great way to get a future down payment, however, this will likely take years, 5 to 7 years, I would think. BRRRR is a great way to force appreciation and get you your next down payment quickly. (Recycle the money!) My experience has been that 20% down payments, mortgages, buying the right properties, selecting good tenants, has been very low risk. One other suggestion for getting the wife's support, include a line on the spreadsheet that shows an amount per month, or every 6 months, . . . shows an amount of money she can pull out and spend however she wants! Wish you well.

Quote from @Alexander King:

Quote from @Carlos Ptriawan:

Quote from @Carini Rochester:

A river in WY about 8 O'clock this morning. My son with some friends. Not successful real estate investors as far as I know.

 Great photo !  I see too many sticks I can't tell if its you or just one you found off google lol

 My son sent this to me. He's the one in the lower left. I didn't place the camera. I guess he didn't take any chance that his phone would fall into the river!

RSMeans construction cost data is about the best there is. They have a variety of options for one year of service. Probably a couple grand a year for their subscription. In a sense there is really no such thing as "accurate replacement cost" without having an architect draw up a set of plans, hand out the plans to three area builders, get price quotes. What there is is estimates. For insurance purposes the estimates will be rough. Like, in general this type of building costs $XXX per sq. foot to build. Multiply your building area by $XXX. Get your estimate. Probably your insurance company will insist on using their number. If they are asking you for the number then approach a construction company or two and ask about per square foot estimates for that type of building.

Your plan sounds good to me. It meets the code for a guard. The gaps in the fence meet the max. opening size of 4" so even a child can't squeeze through.

Quote from @Jacob Zivanovich:

@Carini Rochester

So, assuming that after 5-10 years, the house will have created some equity. You then use that equity to refinance in order to pay off the balloon payment? 

Assuming you aren't buying a complete mess there will be equity. You've made a down payment (I assume.) You're paying down the mortgage every month for five years (or whatever the agreement is.) The property goes up in value for five years. There should be plenty of equity to justify a loan. Five years of keeping the apartments rented, collecting rent, paying your bills. The bank will be interested in your success at the property.

A river in WY about 8 O'clock this morning. My son with some friends. Not successful real estate investors as far as I know.

To clean a laundry room and stairs I use a lady who has the business name Clean Qwueens Cleaning Service. I don't know if she's ever done a STR. Google that company name. She has been dependable and reasonable rate.