All Forum Posts by: Shawn Coverdell

Longview, WA  5K just to add a second water meter to a duplex and that was cutting corners and hiring my own digger. Lots of drama as well. Once office workers get involved, add 2 weeks min. to the job. Each one wants to come out and look down into the hole and comment on what else you need to do. I will try to avoid that in the future. Not sure about power. Mine was already separated so only had to worry about separating water. 

I agree though, Tenants should pay for there own power and water.

Applying for first commercial loan for a small apartment building. 25 year amortization. 4.99 APR. 5 year adjustment with a 10 year loan commitment.

Can someone please help me understand the 10 year loan commitment? 

Thank you,

Looks fairly safe to me based on the math. But of course the condition is very important. Consider capital expenses that may be approaching in near future. Roof, old water heaters and appliances that sort of thing. 

I personalty don't crunch numbers as much as some of these folks. I just know my area. I can tell what it's worth, what it will rent for and I just sort of compare it with my other properties and if it makes sense I go for it. 

Most of my assessment is spent on condition of property. What do I have to do to make it nice. Do I have to belly crawl to replace those pipes?  Did Tweakers play electrician with the wires?

usually I make a decision in less than an hour. That might seem spooky, but it just works for me.

Also, consider how this affects your credit scores and debt/income ratios. Best to keep things simple. decide how much leverage you want to take on. Run all properties on a spreadsheet to prevent going over your ideal leverage percentage. Keep things simple. Buy with cash then finance them at a comfortable ratio so it still cash flows nicely. Let the tenants pay for it for now. Move on to buying more homes. Pay extra towards the principle when funds permit and keep a healthy balance. 

Simple = low stress, more fun!

I invest in this area. Always interested.

conventional. Apparently there are some out there. Others have had similar experiences in different areas. My Broker told me that after 10 loans, I will have to switch to a commercial lender. 

My kind of deal. We specialize in Stinky (literally) properties. The worse it smells the less competition.  Very good job you two. and better yet, you took an uninhabitable property and made it into a home for someone. I can think of no better deed to your community. The neighbors owe you both a beer!

I too can refinance immediately. No seasoning. Broker. 70% ATV.  4.25   Freddie loan.  It may depend on the area. I do have a very nice W-2 to sweeten the pot, not sure if that is why. I can tolerate a 100% vacancy on all 8 boxes and make mortgages. I am curious as well why 6 month seasoning is so popular with folks on here. I will ask my broker if it has to do with my W-2 etc.... or if it is available for investors with less income. Very interesting. 

Brian, you may want to shop around. my lender has no seasoning period. I understand there are many like that available due to the competition for the loans. That would save you a lot of work. We are able apply for cash our refinance as soon as we are rehabbed, rented and ready to do so. No need for short term loan while waiting. 

If you are financially stable otherwise, able to cover your personal expenses outside of flipping, I would consider Holding a couple. see how it calculates out. Rent checks, though smaller continue to flow like a river. Nothing like having that monthly income there for you when needed. I love to work on property, but what happens if for health reasons I am laid up and can no longer continue at this pace. At this point currently, if my boss finds me no longer worth and fires me, I thank him for the adventure, get that truck and camper we always wanted and hit the road. Cash flow keeps the ball rolling and with a half way decent PM in place, there is really not much to do once they are set up and rented. 

Also, If market tanks, and we end up underwater. Rents on hold properties still come through (I hope), but if in the middle of a flip, you are faced with some tough choices in that scenario.

But don't fret. Flipping is cool too. It's not just the money, but having fun doing what you are good at that counts too. You are doing it, Not just talking about it. That alone is so awesome to me.

Best of luck!!!