All Forum Posts by: Elijah Kenan

Me and my two partners are growing our buy/hold portfolio in Jackson MS, but are looking to take cash out of our current rentals so that we can invest into new properties. 4 of the 5 purchases were in 2023, so we're fairly young in our journey.

Issue that we're running into is that most lenders tell us that the value of our houses are too low. We purchased 5x properties wholesale, did some work and are renting them all out now. Purchase price was typically between 40-70K and improvements were laminate, paint, fixtures, appliances, etc to make them rent ready. No major additions or big construction.

Without running a full appraisal, I can only guess on the value, but I think it'll depend on how good our wholesale deals were below market rate. Here are some quick numbers for context.

Purchase total	After Renos	Yearly Rents	Cap Rate (pre costs)	Cap Rate (- $300 IRS, PM, INS)
$62,240.00	$64,890.00	$11,760.00	18.12%	12.58%
$71,280.00	$71,530.00	$9,516.00	13.30%	8.27%
$37,116.00	$39,116.00	$10,500.00	26.84%	17.64%
$58,857.00	$59,857.00	$12,000.00	20.05%	14.03%
$49,501.00	$56,046.00	$10,740.00	19.16%	12.74%

All in, we're interested in any creative financing - traditional refi, portfolio loans, DSCR, HELOC. Please hit me up if you have any guidance for lending!

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Elijah Kenan has started 1 posts and replied 1 times.

Post: Looking for Lender for 5x properties (60-75K ARV)