All Forum Posts by: Clay White

Hey y'all, 

Recently purchased an abondoned car wash, converting to storage units. Where is the best place that everyone is sourcing their overhead doors from? Thanks in advance. 

Hey y'all, 

We have a 1,092sq ft full remodeled lake house just east of Kansas City coming for sale for $199,000. Still a week out from completetion but wanted to throw it on here before speaking with Realtors! Airbnb's allowed with permits, lots of opportunity. Message for more information!

Hey y'all, 

I have a recently purchased lake home just east of Kansas City. I am looking for property management recommendations in the area, and would prefer local managers, but am keeping options open. There is still another month in planned rehab, so nothing pressing, but would love any recommendations people have!

Hey all,

Just looking to connect with any investors from the Manhattan, KS area. Wondering if there are any REI clubs or meetings anywhere. I'd be interested in participating! Thanks!

Clay

Quote from @Jay Hurst:

Quote from @Clay White:

Quote from @Jay Hurst:

Quote from @Clay White:

Hey y'all. 

I completed my first BRRRR on a SFR a few months ago. Was able to pickup a duplex as well under the same criteria, and currently have two more SF BRRRR's ready to close and ready to rehab. I received a conventional loan for the duplex, have one of the two SFR for cash, and the last from the refinance from the first BRRRR. My lender let me know that I'm exceeding my Debt to Income and they wouldn't want to loan out anymore without a significant increase in income. My question is, if the right deal came along, I would certainty want to throw my hat in the ring, but with the lack of traditional financing or BP lenders (rural midwestern state), what options would I have to continue on?

 @Clay White How does your lender know? You will get to use 75% of the rental income of the new property you are buying. so, if the PITI is 800 and the rent is 1000, you would get credit for 750 a month. That would mean you will only have to carry 50 dollars from your income and the rental income from the properties you already own. if the rent covers the whole payment then you do not even have to do that!

Right, and that's a great point. The issue I am running into is that it isn't scaling. So the math checks out, and each property cash flows enough to pay off the PITI at less than 75%, but lenders are looking for the 40-50% DTI, which wouldn't be satisfied even though the property covers PITI +.

 well, that does not make sense IF you were able to buy previously using conventional and  IF the rent is covering the mortgage payments UNLESS your day job income has gone down. I notice you are an agent so that income can obviously be up and down.  

Agreed. The income is the same and still consistent. As far as the DTI, my local lender runs the income as a rolling average, which has been kept the same since the first loan. My rental income is added to my traditional income, but the added $800 in cash flow isn't in flow with what new mortgage payments would be on a different DTI. At my banks 50% DTI, I would need to cash flow double any PITI to be in that 50% DTI loanable range even though each property is cash flowing. 

Quote from @Jay Hurst:

Quote from @Clay White:

Hey y'all. 

I completed my first BRRRR on a SFR a few months ago. Was able to pickup a duplex as well under the same criteria, and currently have two more SF BRRRR's ready to close and ready to rehab. I received a conventional loan for the duplex, have one of the two SFR for cash, and the last from the refinance from the first BRRRR. My lender let me know that I'm exceeding my Debt to Income and they wouldn't want to loan out anymore without a significant increase in income. My question is, if the right deal came along, I would certainty want to throw my hat in the ring, but with the lack of traditional financing or BP lenders (rural midwestern state), what options would I have to continue on?

 @Clay White How does your lender know? You will get to use 75% of the rental income of the new property you are buying. so, if the PITI is 800 and the rent is 1000, you would get credit for 750 a month. That would mean you will only have to carry 50 dollars from your income and the rental income from the properties you already own. if the rent covers the whole payment then you do not even have to do that!

Right, and that's a great point. The issue I am running into is that it isn't scaling. So the math checks out, and each property cash flows enough to pay off the PITI at less than 75%, but lenders are looking for the 40-50% DTI, which wouldn't be satisfied even though the property covers PITI +.

Hey y'all. 

I completed my first BRRRR on a SFR a few months ago. Was able to pickup a duplex as well under the same criteria, and currently have two more SF BRRRR's ready to close and ready to rehab. I received a conventional loan for the duplex, have one of the two SFR for cash, and the last from the refinance from the first BRRRR. My lender let me know that I'm exceeding my Debt to Income and they wouldn't want to loan out anymore without a significant increase in income. My question is, if the right deal came along, I would certainty want to throw my hat in the ring, but with the lack of traditional financing or BP lenders (rural midwestern state), what options would I have to continue on?

Hey Aaron!, 

1) Short answer is that it depends! Primarily for a BRRRR, you are looking for foreclosures or properties that have been sitting for awhile. Depending on your area in Kansas, and your agents relationships with other agents, it can go either way. I work in Manhattan and the surrounding area, and we'll usually write the introductory offer to the listing agent, and we can hash out the rest of the deal pretty quickly over the phone before agreeing to the final terms! In Kansas, once you begin negotiations with one buyer, you are not allowed to negotiate with another until the latest counter offer has expired.

2) The key is just to find an investor friendly agent. They understand what your goals are, and should really only be sending you deals that you would be interested in! Good deals aren't good deals because you got a certain percentage off the list price, it is because you bought the home at a good value and the numbers checked out! 

3) In your Kansas market, yes. We have everything set up for clients through Docusign, which then gets sent out to the listing agent over email! 

4) Also yes! Lowball offers are always presented, and the worse they can say is no! A homeowner can list their home for whatever price they would like, but the market dictates what they will receive. Plus, a good agent will make sure offers are presented and will be able to give you a pretty good idea of how strong/weak your offer is!

Hey y'all. Kansas Licensee here. Looking into BPO's for career relevant supplemental income. Getting into REO's would be a nice benefit, but I see it more so as a way to make a little bit of cash while still keeping a good pulse on the market. Wanted to see if anyone has experience or can lend a hand to the process. Or, if they have other ideas on how to make that same career-relevant supplemental income would be greatly appreciated!

Rent is decent, I have no doubt the property manager would get another $100/mo which is nice. My real target is if we'll be able to get that back on the refi, or if going from 1 to 2 bathrooms will net another 7-10k on an appraisal.