All Forum Posts by: Cory King

@Alex Longinidis congrats that's super exciting! I have a friend who runs a meetup over in Springfield, OH which is about 30 min away. Happy to connect y'all. 

@Devon Shives What's the plan to help the mrs improve her credit score? That seems to be a straightforward solution. Talk with your lender. If you can have a lease lined up for your unit they shouldn't count your current mortgage against you and could use that "potential" income as income on your DTI.

@Monica Gonzalez a paid memership to BP will unlock their tools/calculators. Call agents/property managers in the area you're looking to invest in for real time stats like rent and pricing info. 

You should be weighing out your tolerance for risk. Local market economic conditions. How much $ do you want to spend? Do you want to buy fixer uppers or more stable assets? What's your end goal for your investing journey?

What @Tim Ryan said. A mentor. Connect on here and go to local investor meetups. 

@Chizitem Ibeneme Call local property managers in the areas you're considering for the most accurate info on rental rates. Don't overcomplicate it. Everyone loves to say use this app or website, just call the experts directly. It'll be the most accurate talking to boots on the ground and not an algorithm. 

For cap ex, same thing. Talk to management and agent/investors in the market to help. It'll be property specific depending on the condition but I'd say anywhere around 5% is going to be a number to start with. 5% cap ex. 8-10% for management. 5% for vacancy. Adjust depending on state of home and local market conditions. 

Hope that helps. 

@Justin Pumpr I'm not sure I'd double down on the debt and tap further into a HELOC. Risking your house on these kind of moves can become a literal house of cards as you scale. I'd maybe look into other markets or consider more stabilized assets considering you're investing out of state. These $250/mo cash flow homes won't get you there. Aim for $500/mo min and even that won't allow you to tap into unless that's after cap ex, management, vacancy is factored in. I don't know much about Ohio market, but I see everyone flocking there for section 8 income and that sounds wild to me as real wealth is build on long term appreciation of stable assets in solid areas.

Don't fear the stability of a W2. The benefits that come with them can be attractive for sure. Self employed is a costly endeavor. A mentor of mine once said to what you aim for in annual income should be 10% of your portfolio size. Example $300k/yr is $3M in assets. Buy up then pay them off as fast as possible. 

My 2 cents. 

@Candy Kimbro Congrats on your STR property, nice cash flow for sure. Some banks may lend as a HELOC on the rental property, or refinance it, but you're right you'd have to get your mom on board for that.

Love the idea of helping out a first time buyer, may run into trouble if she's not the primary resident, check w/ lender but I don't think that'll fly w/o more of a down payment. I know UTK typically has freshmen in the dorms first year so it may be tricky.

I've definitely seen parents purchase properties close to campus to house their kids while they're at school, it's a solid move. We've got a few homes near campus we use as student rentals and they certainly perform well. Averaging $1k/mo per bedroom which is now on the cheaper side of things. 

I'd consider doing some kind of cash out refi on the property at a number you're both comfortable pulling out, while still leaving $ for reserves to maintain the STR you currently have. It'll restrict that cash flow, but unlock a nice option for the family. Especially if the other kids follow suit, they'll likely need some kind of housing for a significant period of time nearby so buying now wouldn't be the worst move.

Just my 2 cents. Happy to help however I can.

@Rick Soto you're right it's either save now or over time. Seeking some clarity.
What's more important to you, cash in hand now or less of a payment over time?
What's your longer term plan for the property?
Definitely sell or keep as a rental?
What would you do with the cash difference? As it would it make you more $ invested elsewhere vs in the home? As Knoxville has seen high 6% appreciation in the last year, can you get a better ROI elsewhere?

@Jinglei Shen depends on the builder. Some don't, most do. They're not just going to sit on it and wait, can't afford to. Even the big box builders like DR Horton will part with one to an investor, it just has to be near completion before they will. We've got 2 clients buying new build to rent homes and just sold 2 new townhouses for STR purposes. I can help make some connections if it'll help in any way.

Talk with your local bank you may already bank with first. Knoxville has some good ones like First Tennessee, Pinnacle Financial Partners, Y-12 Federal Credit Union. From there ones like Foundation Mortgage or Guaranteed Rate are super solid. I just did a cash out refi on one of our rentals w/ Guaranteed Rate. Happy to make intros at any of those I mentioned if it'll help. @Dahrian Barrett

It sounds to me like you've found value in the relationship enough to workout an offer that compensates everyone and doesn't leave you feeling in a weird spot. It's all negotiable. Find a number you're both (you and your agent) are comfortable with. I'd recommend having them help out with the contract portions, if anything to help with liability concerns. Agents pay for insurance for these kind of things. Check your buyer rep agreement for how that's arranged. 

I'm an agent so maybe I'm biased. I've had clients who've bought off market without me and personally I value the relationships over the money so it is what it is.