All Forum Posts by: Chris Webb

I am following this post as I am looking for a beach rental. Thanks for asking the question!

I re-read the KW books every few years, MREI and "Hold", they are great for strategy. I think this concept can be replaced by YouTube channels like Pace, One Rental at a Time and others. That way you get weekly content with similar foundations. 

One Rental at a Time has a lender on his YouTube Channel that does the 50-40-10, that might work. 

Quote from @Christian Sharron:

Quote from @Chris Webb:

HI @Christian Sharron, what was the initial rents you received? What was the CoC return?

Initial rents were pretty significantly discounted. $400/mo for the top unit (1/1). $600 for the 2/1 unit I was living in (charging $300 to a roommate) and $360 for bottom 2/1 unit with a yard, more parking, and a shed…

Using a 10% vacancy rate, 4% for capex, 12% for maintenance, and sticking with ~ $400 for utilities during the hottest months (pretending that was the cost year round), I was seeing a -10.65% CoC return and 2.2% cap rate according to my numbers when I first took over. Fortunately I was able to do some work myself and with friends so that helped

very good, keep it up!!

Not yet, but I just spoke with my lender about getting into one this spring. Locally, we have a few multi-fam (2-4units) and I needed to be qualified before I look. We will turn our existing home into a rental and house hack the multi-unit. 

Hi @Courtney Brown, I have purchased several properties using the VA home loan and just sold a rental that was financed as VA. The trick is you have to occupy the home for a period of time before you can rent it out.

I wouldn't say buy low meaning cheap, but under asking, yes... if possible ( which should be available in today's climate).

As far as building, you would have to talk with a VA home loan specialist. they have regulations that might restrict what you can build.

Creative ways to finance a deal would be through Navy Fed which offers an additional 0 down loan product for Vets who have no VA entitlement left. This way you could potentially get a few properties (3+) with zero down.

Initially, talk with a lender who understands the VA and they will give you the guidelines. Next, set your parameters and house hunt! Repeat the process and in a few years you will have a portfolio of several properties with little or no money out of pocket.

Hi @Mario E Gonzalez, are you married? You mention the Fam and I am just trying to understand your situation. Have you looked at markets in NC/TN or PA? Take a look at each one for a week and figure out what the average CoC return is. Also, talk with a Lender and get your financing in order. I thought I would need 20% for my latest HH and I only needed 5%. In fact, I just called to remove my PMI less than 2 years later due to appreciation. Getting a multi-unit would be an excellent choice, in fact, I convinced my wife to do this on our next purchase to eliminate or reduce our monthly costs. I would also get involved in Facebook groups in the area you are looking for, they sometimes have deals that you can discover off the market. I just discussed a 12-unit building in TX that was not for me, but I was able to answer some initial questions to figure it out. Good luck!!

BRRRR is best for an appreciating market with flat rates. Since there is some fluctuation in rates it might be best to look for another option over the next few months/ years. Once inflation is under control, rates should stabilize and it might be feasible again for the novice investor. I follow the Cash on Cash return from the One Rental at a Time YouTube channel and he has several strategies to make this work like seller financing and 50-40-10 options. Take a look at his channel and look for loan programs that will lower your DP and increase your cash flow. Take care and good luck!

Yes! As everyone is suggesting, look for a DSCR Loan. In this loan the property is qualified, not necessarily the buyer. I know a few companies that do them if you are looking for one, just DM me.

@Susan S Morris That is excellent! Great job. Best of luck this year. From what I am reading, the supply chain is smoothing out, which is good. Take care and if you ever get out to Lynchburg let me know.