All Forum Posts by: Kerry Baird

We rent 3 and 4 bedroom, brick single family houses near two Air Force bases, in two States.  Our property managers put the houses up for rent to the general public in communities near to the bases, and we end up renting to a number of military families.  It has been a good strategy over the years.  Granted, there are a number of support jobs, contractor jobs, and GS jobs near bases.  These areas have (mostly) stable employment.  That is a good thing for investors.  Occasionally, we have a change up, such as a training school that shortened classes, and so the turnover increases or has decreased.  

What cabinets are you using for that rehab? 

It has been a month since this post.  Curious what you decided to do.  

75% ARV and seller finance? That is a win for you, but is it also a win for him? Is this a distressed situation? Are the houses needing heavy rehab?

The owner carry is more valuable to me than price.  I would likely hold them if they cash flow, and as long a term as the seller would carry.

There is no reason to bring up the fact that you are new...they won't know.  They are nervous to be in their own shoes, ya know?

I use a script to remind me of things I don't want to forget and that I need to know in order to make a deal.  Ask the question and then listen.  Why do you want to sell?  How much do you owe?  How much do you think your property is worth? And why do you think it is worth that much?  How late are you on payments?  And on...

Duplex. Or better yet, four-plex, since you can buy those with conventional mortgages as an owner occupant.  This will allow you lower down payment and lower interest rates when you occupy.  Rents help you remain cash flow positive, and teach you about property management.   

A condo has its place, but there are more downsides, to include HOA issues, common spaces, control issues.

Nice looking house that will make a nice rehab and/or rental.

Great ideas above! Perhaps change the game plan and work on buying creatively...while at the same time improving that credit score. An example of this would be to buy owner-carry, or on installment loan, or subject to the existing financing (not for everyone), or buying with a lease option...where you don't get financing until such time as your credit score is higher. Another thought is to work on obtain business credit apart from your personal credit. We have an older LLC, and instead of a FICO score it has a Dun & Bradstreet DUNS number. The LLC has its own credit.

:D  I sure can relate to this post.  Have you ever read "Eat That Frog"?  Trying to find a portfolio lender is one big, fat, hairy frog for me.  At least I can find motivated sellers.  But, motivated lenders...much more difficult.

The first thing that comes to mind is that it is easier to get an owner occupied loan than a non-owner occupied loan.  Your deposit can be less and the interest rates are lower.  At this stage, conventional lending should work just fine, especially if your tax returns show income for the current rentals.

Things started getting a bit more difficult for us when going for the 5th loan...not impossible, but much more in terms of a 25% down payment and 6 months' "liquid reserves" that we had to have on hand.  Just run your numbers and be cash flow positive.