All Forum Posts by: Jim Kalish

You may be right. My homes are single and multi-family

@Emmett Burton.  @Charissa Bruckman is right, PenFed is a good call to make. But they have a limit on how many properties you can have. I think its 4 but you should reach out. And TD Bank may be able to help as well for the cash out refi. We are working with them right now on a deal to do a cash out on one of our properties and then consolidating all of our notes into 1. They do HELOCs on investment properties as well as long as you are doing everything in your name and not an LLC. But the DTI calculations from Fannie and Freddie are getting ridiculous. Even if you are in great shape the debt they calculate is going to surprise you.

@Gustavo Perez Jr The what you are saving for question is less about you long term goals and desires and more about the mechanics of the deal.  What price range will you be looking for?  How are you going to finance it?  How much rehab are you willing to undertake?  And I don't mean you personally, I mean do you want to do paint, carpet and roof or a complete gut?  You have to work through the numbers and then see what it will take.  If you are looking for a house you can buy with a bank mortgage you will need 20 - 30 % down.  Then you will have to cover the rehab costs out of pocket.  If you are going to use a fix and flip loan you will still need a down payment but can finance the rahab too.  But the rate is going to be higher and there may be points up front.  So it's tough for anyone but you to decide how much you need.  And of course there is always the option to partner with a money guy.  You find the property and run the rehab.  He puts up the money.  You split the profits.  A lot of work has to be done up front before you put in any offers.  Rehabbing is the easy part.  Making sure up front you don't run out of money or lose your shirt is what take all the work.  Remember, you make your money when you buy.  That means have all your financing figured out and know what you are going to have when you are done before you buy.  That way the end results are a given and you will succeed.

Best of luck!

Outstanding work. Great design and details. That alone makes this a home run. 

Anthony, I was where you are at first. Closing fast is the key.  That's why cash buyers can beat you out even if they are offering the same or even a little less  This option is a little expensive but try developing a relationship with a local hard money lender. They don't go through a weeks long approval process. If you can find someone who will approve you in a couple of days just act like a cash buyer. If your hard money lender let's you down you will lose your ernest money so be careful. But this will let you get started. Eventually the hard money lender will give you better rates and eventually you will have the cash. You could also partner with someone who does have the cash. You would be surprised who has a lot of money. Good luck. 

I agree with @Michael Plante.  This seems to be about homeowners selling their primary residence through normal channels, ie realtors, and moving on to another primary residence.

Thanks Linda. Best of luck. 

As many have said the tenant is legally obligated to uphold their end of the lease.  And you would be in your rights to deny the request.  But it sounds like you are managing the property yourself.  If so, you need to consider what life is going to be like with a tenant who complains constantly.  Yes, this is a business.  But if you are going to be constantly harassed, and from the sounds of it you will be, make a business and personal decision to get the tenant out.  But don't take a bath on it.  Tell the tenant you will agree to breaking the lease as long they continue to pay the rent until you have someone new.  And if there are any costs associated with doing this the tenant needs to pay them.  Doing this does not make you a bad business owner.  It makes you a business owner who looks at the big picture, including your well being.

Good luck!

@Linda A Hawkins I can tell you are frustrated.  And if you are having a bad run of tenants I can certainly understand.  I'm sure you put in a great deal of effort in getting your places ready for the new tenant and all you are asking for in return is for them to pay their rent on time and respect the property.  I know that's what I expect.  But I would surprised if anyone were to agree to anyhting beyond the background checks we all do.  We have certain criteria we us beyond the background checks.   One of the most telling things is when you verify employment and previous rental history.  When you get a business phone number or a rental office phone number, confirm it for yourself.  You may actually be calling Uncle Bob who is going to tell you the person is a great tenant.  When in reality if you actually got through to the true rental office you might find out they were routinely late or to the actual employer and find out they were just fired or quit.  I noticed a few people suggest looking at social media.  And to the best of my knowledge there isn't any law keeping from doing this.  But this can be a slippery slope.  Despite the fact that this wouldn't be the case it could be misconstrued that a decision was based on something that could be considered discriminatory.  So be very careful if you go down this road.  Here's a good site for more thoughts. https://www.apartmentlist.com/...  But as others have said, once you narrow it down go with your gut.  If you get a bad feeling then keep looking.  Just remember to keep it consistent and bove board.

Congrats Brian. Not sure if this is also your first rental property or just first multifamily. 12 units is a great way to start. The key is to put a lot of effort up front in vetting potential Tennant's and then treating them with respect. Best of luck to you.