All Forum Posts by: David Acosta

Congrats, @Brian Knitter!  Sounds like you bought it right.  Pretty incredible jump in value with little renovation costs.  Congrats again!

Definitely take a look at the BP Calculators. Along with this, check out Rentometer.com to get a good grasp on the rental market for both the neighborhoods and property types you're looking at (SFH vs TH). The Rentometer.com data should feed the BP Calculator.

@Tanner Stenquist sounds like you're off to a great start.  As previously mentioned, I would evaluate each option based on future rentability and return on investment.  This will give you a better idea of how they size up.

It's also worth considering your financing. I would imagine the townhome is in an HOA -- as a result, this monthly payment will increase your monthly payment, reduce your buying power, and potentially eat into your cash flow. If (a big IF) you'll also be incurring PMI, it may break the deal. Again, great start - sounds like your going about it the right way and looking at the bigger picture.

Hey, @Abe McLaurin: for alternatives to Columbus, what are your thoughts on Dayton?  Shorter commute than Cleveland, not as hot as Columbus.  

Thanks for your service, @Jacoby Turner. The VA Loan is going to be a great tool to get you into a 2-4 plex as long as you occupy one of the units. I would connect with a lender early on to bring clarity to your financial position, buying power, and deal criteria.

Ideal, look to buy something dated, fix up the unit you're occupying and then transition renovations into the other units as the tenant leases expire.

Hey @Eric McAvoy, you'll be moving from residential to commercial financing - so overall one of the biggest differences will be in deriving valuations. You'll derive the value based on the NOI and cap rate for your submarket, as opposed to neighborhood comps, etc.

While your lender will focus on the property's performance, there are other personal hurdles such as net worth and liquidy requirements that need to be met for qualification.   Depending on the loan product, you may be able to get non-recourse debt, which isn't common or seen on the residential side.

Best of luck moving forward! 

One thing to consider is that your client's lender will look at the T3 income to determine DSCR and LTV which both play a role in proceeds. So, going into a property now will mean you have to bring more cash to the table. Because this is likely to fluctuate, I would suggest baking a financing contingency into the contract. The economic loss due to covid-19 and fluctuation in NOI/asset value will take shape 30-60 days from now. Best of luck!

Congrats, @Nick Beveridge!  I especially like how you pieced together the financing by adjusting your commission fees... a great way to go about it. Congrats again!

@Scott Trench - Fully agree here.  It's hard to imagine multiple months with no rent collection enforcement AND no financial relief.

I believe the qualifying condition for forbearance is that landlords actually suspend all evictions for renters unable to pay rent due to the impact of coronavirus. The eviction suspensions remain in place for the entire duration of time that a landlord remains in forbearance.

As you put it, it seems to be the most logical option.