All Forum Posts by: Joseph Firmin

David Greene I think would agree with you to a point. This is market and sub-market dependent, but your arguments are valid generally speaking. You want to install quality, not necessarily "high-end" and not low-end either, but the right materials for the market in which you're operating to achieve both a premium in rent and rentability. A contractor typically will charge you similarly to install granite vs. laminate countertops, but will charge more to install tile vs. a tub surround. If you're comparing tile to tile - then yes, the labor is the same and often cheaper if you use higher quality tile because the breakage and additional labor won't be present.

I'd recommend doing a HELOC instead. Speaking from experience, you'll have access to the funds if you want to use them and your mortgage payment will stay the same. You don't pay on the HELOC until you start to use it. If it takes you 2 months to find an investment property, you'll have saved 2 months worth of incremental mortgage costs (incl. closing costs of a refinance). You can also use the cash flow from your investment property to pay down your HELOC faster (use it as a checking account strategy).

Most will require some skin in the game - bring capital to the table, not only the deal. But you can definitely find lenders (they don't have to be local) that will lend 100%. Keep looking. You can also try to get a credit line, but if it is a new LLC, you may not get much.

Sure you can, but you won't get the real/full perspective unless you are specific about what pictures you need and of what parts of the property. Definitely doable though.

You can find them. We've done 3 deals with a local upstate NY credit union at 15% down. Took calling 10 banks, but we found one. The relationship was pre-COVID, so they have continued terms with us on the last 2 deals. If you have a demonstrable track record, they'll be more likely to lend.

Talk to more banks, but at the end of the day, they need to ensure that either you have the DTI to handle the 4 plex mortgage or the property is already leased up and the rents cover it. Doesn't seem strange to me.

Is that even real? Not sure it is legal either. 

I have not heard of a lender doing a HELOC without a credit history/score. If you establish an LLC in the US, you can then get a credit card for it and that could help you get started building credit history.

Check out Erie Niagara or National Real Estate Investor Group (NREIG).

I don't know the Hollywood, FL market so I can't help there, but regarding the split utilities, check out a RUBS sort of setup - Ratio Utility Billing System. Mostly used for multifamily properties, but it applies here. Reach out to a company like Livable and see how they do it. Essentially it is formulaic utility billing based on a few factors like # of residents, sq footage, etc. I think it would work well in your situation unless you just pick a number and tell the tenant that is the number each month for utilities (that would be easiest, but doesn't solve the over usage issue).