All Forum Posts by: Kenneth Garrett

@Lisa Graesser

Thanks Lisa.

When your selecting mattress types for your STR, (Florida Panhandle 2 blocks to the beach) what type of mattress are using when it comes to softness to firm?

@William Huston

This is definitely market driven.  In my area, without providing these appliances will hurt you since it is common for landlords to provide all appliances and w/d.  In other markets it won’t hurt you at all.  Check out other listings in your area and look at what they are providing.  I rarely get any calls for repairs on appliances.  

@Dustin Sanders

Yes, you are going to forecast it based on real numbers. I provide the rent projected or even better if it’s already rented then I can use actual numbers.

Rent 1500 - property taxes 300 - insurance 50 - maintenance 50 - pm 100 = NOI = 1000
1000/ P&I 700 = 1.42.  I generally don’t include pm since I self manage, but they might include it.  In my experience they don’t include capex.

@Dustin Sanders

I've used many commercial loans on my rentals. Interest rate is higher 4.5%, need to own it in an entity LLC or other type. DSCR minimum 1.25. 75% LTV. Try small local lenders I find them to be the most responsive.

@Nathan Dehn

Send me a pm

@Hayden Done

I've learned so much from podcast and books that when I started I felt I was ready to go. Definitely get your finances in order; credit and cash. I learned about private lending early on and met great people who were willing to lend at REIA meetings, meetups and REI events. Find a market you like and become an expert in that market. This way you spend your time efficiently and effectively.

Good Luck.

@Nick Pawlowski

I like two bedroom investments that I can covert to 3 bedrooms. Great upside. Just need enough square footage generally over 1000 square feet. I invest in a lot of BRRRR projects; so poor condition does not deter me provided there is the ability to force equity through, rehabbing kitchen, bathrooms, creating open floor plan, basements generally add a bedroom. Stay away from the following:

Bad layout, unless it can be fixed.

Bad/high crime neighborhoods

Busy street

Trashy neighbors

Bad school districts

You can fix the property, but you can’t fix the location.

@Felix Stone

How to use Private Lenders on my BRRRR projects and Flips has helped me along the way. Having the ability to refinance out of the BRRRR projects was key as well. Getting my credit in order was the second key. I am not financially independent. I still have my W-2 and I self manage my properties. I don't spend any of the cash flow as I use it to fund the next deal. My next deal STR in a vacation town will generate 5 times the income of one rental. My rentals are all leveraged with an average of 55% LTV. My goal was always to generate $10K in cash flow. Two years to go to hit my goal.

@Mary Joe

If you have a private loan in addition to a first mortgage you are in second position on the liens. You will recoup whatever is left over. 2nd position is not the best spot to be in. Example, if I am lending on a BRRRR project or a flip, it's best to be the only private lender so I'm in the first position. Once the property is sold or refinanced my funds are returned to me with interest. All foreclosure procedures must be spelled out in the note and mortgage or deed of trust depending on what state your in. Always have an attorney draft the documents or if someone else drafted them have your attorney review everything to protect you.