All Forum Posts by: Cody Landry

Hi BP Family,

Curious about a situation I may not be understanding clearly.

If you purchase a Turn Key STR using a 2nd Home Loan (Vacation home 10%), how do you get your initial investment out? (10% DP + $10,000ish in non-forced appreciation related changes. [Hot tub, Paint, etc])

Since you aren't doing an overhaul, or any intentional forced appreciation efforts...

Do you basically just have to wait until you generate enough profits to replace it?

Wait 6-12 months and cash-out refi for whatever equity has been generated?

Or is there something else I am missing here?

Thank you all in advance!

@Jeffrey R. White

I just realized I didn't answer your comment about appreciation. It really isn't a main focus. Primary concerns are highest cash flow possible, is it rentable?, is it growing?, Minimum rehab to create the forced appreciation.

Also, thank you for the book reference!!!!

@Jeffrey R. White Thanks for the response Jeffrey! I shot a friend request and set you to follow.

I am not really equipped to evaluate the numbers for you, so I will let someone else tagged do that if they wish. 36107 is not a bad area in general. The homes are typically a bit more dated there, but decent bones in most cases.

I look forward to hearing more about how your deals shake out!

@Christi Millo Invite sent! Thank you so much for the response. Hoping to make 2021 a big year! Def going to need all the friends I can get. Haha.

Thanks Joseph! Invite sent. Appreciate the response and willingness to connect. Def interested in talking more as I am not happy with my current property manager on my rental in the area as it is. Contractor will be very nice also, as I need more recommendations in that area.

Hi All,

Newbie here. Looking to connect with anyone with anyone and everyone.

My wife and I are looking to start purchasing properties in the Montgomery AL market. We used to live there and still have family there. We still own an accidental landlord property there. Really familiar with the area and what's what.

We currently live in TN. I work in the IT industry fully remote for the last 6 years. (6 fig+ salary save 35%+) and we run a website design and marketing agency for select clientel. In just our first year we are near 6 fig (all profit, runs on less than $200/m expenses) in our business.

We are looking to redirect all future business profits and savings into RE properties. Both FICOs for us are above 720. Prior to buying our recent home my score was 814. DTI is excellent as well.

We are focused strictly on buy and holds. No interest in flips/wholesales. We want to build MRR the same way we do in our web biz and we are already comfortable using property management as we have done that for nearly a decade.

Would love to connect with y'all and get to know more about you!

Don't hesitate to connect even if you don't comment. Just want to follow and learn as much as possible over the next year.

Bonus points if you include your most impactful RE related book you've read.

TIA!

@Mack Benson Thank you for the response! I think we were mislead earlier on from an informational perspective in thinking we could get a conventional through Fannie/Freddie with a 3-5% down. This is forcing us to re-eval a bit and assess HML and consider privates. Really leaning towards just waiting and using my own capital then refi out later. Much slower scaling process, but less risk responsibility to third parties. Lots to learn, luckily we have a big window to gain the knowledge first.

@Elle Johnson Of course!

Thank you Tony! I appreciate the response sir. 

Thank you for your response!

That is inline with exactly what ranges we are looking at.

To be clear, the home I have in that area already I have had for nearly 10 years with a property manager already. I recently purchased a new home in another state. So, on my name I have 2 home loans. My wife has none on her name and our credit is nearly the same. Income sourcing is a different story though. 

Hard money may be the way to go here then. 

The homes we are looking at are not in "unliveable" shape. Could we not just get conventional lending to purchase the home, then refi at a later time? We don't care about keeping the money tied up in the property for a year. 

I am essentially just looking for the most economically focused move, rather than the most liquid. If I can avoid cost inferences by waiting 4-6 months and paying the down payment of 20-30% (assuming that a 3-5% downpayment style is not available due to not living in the home) then that is what I will have to do.

In regards to the "hard money" lenders, what turn around did they require on their money? Other than the upfront rehab costs, what did you have to come out of pocket?