All Forum Posts by: Derek Meyer

I’m under contract on a vacant duplex that is move in ready and we should be getting the home inspection tomorrow. I’m offering over asking price (won against 6 people bidding) and the appraisal likely won’t meet the offered price (which I’m ready for).

I want to propose to the seller to let me start filling it with tenants now before the appraiser gets there so I can show actual rents instead of leaving it up to them.

A) Would this help it appraise higher? (Thus allowing me to hold more of my cash)

B) is this a legitimate strategy since I am not the property owner yet?

Short question: how many applicants do you generally go through before finding a tenant?

Backstory: I’m under contract on a duplex. I went into it thinking “I can probably get $1,100 per unit which pencils out to a good deal” (not exceptional but good).

To test the waters I listed the pictures and description (without the exact address) on Facebook marketplace for $1,275 (which turns it into a great deal - mathematically). Between 10pm-6am I had 12 inquiries (non-screened haven’t done standard checks on any of them yet).

If I can get that type of response in 8 hours over night, I feel like I should ask for more.

Thoughts, opinions and suggestions?

@Joe Splitrock looks like he might have something worked out with his mother.

I’d lend it to him except I’d rather buy another one myself 😝😝

My wife and I are under contract on a duplex.

We’re making a 25% downpayment coming almost entirely from appreciation from our primary dwelling.

I want to target getting property #2 by Jan 2023 but I don’t know that we’ll have saved enough and I can’t plan with the expectation that appreciation continues.

Has anyone found a 80-90% LTV for a 2-4 unit multifamily property? A 25% downpayment is currently about $75-$90k in my market.

@John Woodington it looks like he might get some help from a family member. The agreement is that he saves ____ amount by the end of the year and they’ll pitch in the remainder.

@Kelly McJunkin currently yes, but I’m not opposed at looking into other areas. I just haven’t yet researched them enough to have the same comfort level as where I am locally.

I know that above a certain street are now in a less desirable section as opposed to a macro level of by zip code.

My father in law is getting me interested in San Antonio though. Lots of new construction.

@Kelly McJunkin listen to the podcast at other’s stories. Find which is the most suitable for your lifestyle.

My wife and I pretty much only interested in rent ready multifamily homes for now, but as income expands we make look into rehabbing and the BRRR method.

@Hector Salas very nice! 1st one is the hardest.

@Katie Esmay I'm literally going through a cash-out refi currently. A HELOC was the other option we considered, we ended up doing the refi since rates have gone down since we obtained our mortgage (so we decided paying fees once was better than twice).

Honestly having our downpayment from a HELOC might have been a better route since we can pay it down then utilize it again for our next property, but since we're moving forward I'm not going to complain about it.

Another important datum is we have so much equity in our primary dwelling that an appraisal wasn’t needed so the refi will end up being a very quick process.

PS, our home is also homesteaded.

@Katie Esmay I believe you need a 25% for a non-owner-occupied multifamily home with Freddie/Fannie loans. At least that is what our broker told us.

You may be able to find a lender outside those loan programs but it may be at a higher rate. Let me know what you find.