All Forum Posts by: Delvin King

If you plan on using financing you for sure need to talk to a few Bankers or Non/QM Brokers. Before you start asking any questions you need to get an idea of what you qualify for in terms of financing. First off a 10 Unit is commercial not conventional so the qualification requirements are higher and you need to understand the loan parameters. You only options are going to be DSCR or a true commercial loan.

Both of those are going to require 25% down for a "First time" buyer with (zero) landlord experience. Unless you own a couple of residential investment rentals already for 12+ months. Commercial requires the property to be livable (not subject to), usually a 95% to 100% occupancy ratio, DSCR (rents) at 1.25% or higher, PFS, Strong assets, 12-18 months reserves, Fico above 700, I have seen lower but rate will be higher and in most cases cause the DSCR ratio to be under 1.25%.

If you own a primary you might be able to use an SBA type program but those are not great. DSCR would be your best bet but again 25% down and a DSCR of 1.25% minimum.

Do yourself a favor and do not let just any Lender/loan officer pull your credit just so they can take an application and have a possible deal. What I mean is only work with a Banker or Loan officer who has several years of "Funding" commercial loans. There are far too many hungry loan officers (No offense) trying to make it in the business who are never closed on a commercial loan of even A DSCR loan.

The problem with that is it will cost you lost money and most importantly lost time! So check out your approval options first to see what is required by the Bank and then go ask the questions. The bank will tell you down payment up front, what DSCR ratio is required, what occupancy ratio etc.

Thank you so much! A lot of information to consider.

May try to see if we can do some type of Owner Financing initially. Then traditional financing. This definitely helps though. Thanks again 🙏🏾.

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Spoke with a guy who has invested in Real Estate for 30 years and is looking to sell some of his investments at the end of this year or beginning of next year. One of his investments is a 10 Unit Apartment Building.

Gonna meet with him soon to “chat”.I have never purchased a Multi-Family before and don’t even know where to begin.

What are some questions that I should be asking..?

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Quote from @Mya Toohey:

Congrats!!!! I used to live in Cincinnati and then Dayton Ohio. I am now in the Tampa, Clearwater, St Pete and surrounding areas. I hope the best for you!!!!!!

Thank you Mya 🙏🏾

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Quote from @Kerlous Tadres:

Quote from @Delvin King:

I have listened to Bigger Pockets for a couple of years now. I have plenty of time while I am out delivering for UPS.

I set a goal 3 years ago to become a Real Estate Agent and also an Investor. We purchased our first rental in Aug 2023. And are currently looking for our second deal.

I recently got my Real Estate License for Ohio and am currently working on Licensing for WV. I plan to delve into Real Estate Full time in 2025 helping clients Buy, Sell, and Invest..🙏🏾🙌🏾.

Nice man! Keep it rolling!

Thank you 🙏🏾.

1 Vote

I have listened to Bigger Pockets for a couple of years now. I have plenty of time while I am out delivering for UPS.

I set a goal 3 years ago to become a Real Estate Agent and also an Investor. We purchased our first rental in Aug 2023. And are currently looking for our second deal.

2 Votes

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $85,000
Cash invested: $12,000

We bought our first Rental through an Online Auction.

What made you interested in investing in this type of deal?

My wife and I have always talked about investing in Real Estate but have never took action. We closed our eyes lol. And purchased this deal through an Online Auction.

How did you find this deal and how did you negotiate it?

We found this deal through an online Auction. I did a walk through a few days before it was advertised through Facebook. I watched the bidding and made a bid at the last minute.

How did you finance this deal?

We purchased through a HELOC.

How did you add value to the deal?

Pulled all the carpet up. Refinished hardwood floor underneath. Added Luxury Vinyl to Kitchen and Bathroom.

What was the outcome?

Renting at $1200 per month since Dec 2023

Lessons learned? Challenges?

Lessons learned:
1) Do a more thorough tour of house before purchasing

2) Have more money saved

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No.

1 Vote

All Forum Posts by: Delvin King

Delvin King has started 3 posts and replied 6 times.

Post: 10 Unit Apartment Building

Post: 10 Unit Apartment Building

Post: Real Estate Agent and Investor

Post: Real Estate Agent and Investor

Post: Real Estate Agent and Investor

Post: My first purchase

Delvin King has started 3 posts and replied 6 times.

Biggerpockets Logo Post: 10 Unit Apartment Building

Biggerpockets Logo Post: 10 Unit Apartment Building

Biggerpockets Logo Post: Real Estate Agent and Investor

Biggerpockets Logo Post: Real Estate Agent and Investor

Biggerpockets Logo Post: Real Estate Agent and Investor

Biggerpockets Logo Post: My first purchase

Post: 10 Unit Apartment Building

Post: 10 Unit Apartment Building

Post: Real Estate Agent and Investor

Post: Real Estate Agent and Investor

Post: Real Estate Agent and Investor

Post: My first purchase