All Forum Posts by: Lyric Todkill

Thank you! Yes, that's the scenario. I'm also trying to buy a house for my family this year and am worried about taking on this mortgage. As long as I have a lease agreement with a tenant, the debt shouldn't affect my ability to get a loan on a primary residence, correct?

Happy New Year, everyone,

I'm looking for some advice on a family real estate deal. Basically, I am providing them a lump sum to pay off their debts and in return, the taking ownership of their home. The plan is to lease the property to them at their current PITI payments for two years, at which time they will move and start renting the property to tenants. How should we go about transferring the property, and what are some pitfalls for which to watch? I'm in Texas.

Thank you!

LT

Greetings fellow investors,

My partner and I are working on our first duplex deal here in Houston. It’s already gutted and we would have about four months of rehab ahead of us. We have pre-approval for a hard money loan, but have concerns about how the refi will go. Here are some details.

ARV 330K

HML 260 @ 9.9% for 6 months

Refi as a commercial loan @ market (verbally around 5%)

My concern is the market rate. I once accidentally bought a lobster at dinner for $180 at market price, so I’m guy shy about getting into bed with a lender who can’t offer me a hard number. Is this normal for hard money lenders when converting to commercial loans and what are the main differences and pitfalls of a commercial loan vs a conventional loan? How difficult is it to take a hard money loan from one lender, but go elsewhere for the refinance? I’m also unclear as to why we weren’t able to secure a conventional loan in the first place.

Any insights into this?

Thanks everyone!

Best,

Lyric

I realize this an older thread, @Ethan Summers. Did you get your leads from a lead generator like BoldLeads, or did you do the leg work yourself? I've been considering BoldLeads, or something like it. Some are quite expensive and while I know they will generate good leads and save me time, I can't blow my entire budget on marketing. I've seen some sites like Lead Sherpa, Batchdeals, etc that might meet my needs, but was wondering if anyone had a good recommendation.

Thanks!

Lyric

Investment Info:

Single-family residence buy & hold investment in Houston.

Purchase price: $231,000
Cash invested: $26,000

3/2 SFH in Houston.

What made you interested in investing in this type of deal?

I purchased the home to live in, added tile flooring and new windows. I decided to try AirBnb for a while and I enjoyed that, but wanted something a little more stable. Posted the house for rent on Zillow and great tenants fell into my lap on the first day. So far, so good. Looking forward to the next deal!

How did you find this deal and how did you negotiate it?

My agent found the property on the MLS. I've used her for several homes over the last 10 years.

How did you finance this deal?

30 year conventional loan. Cash rehab.

How did you add value to the deal?

New tile flooring and new windows. Also, since it's my only rental, I manage the property myself.

What was the outcome?

Property produces almost $400 in cashflow each month after all expenses.

Lessons learned? Challenges?

This isn't that hard, but it requires education, patience, and a little luck, especially in a competitive market like Houston.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Meg Beach at Gary Greene Realty is a wonderful agent.
Mike McDermott at Gibraltar Lending - super fast closing.

Thanks for the reply. Purchase price is $60k and I am planning on a long-term rental. I appreciate the feedback.

Good morning Houston,

I'm a newbie investor with a single family home rented it the Westbury area of Southwest Houston. I have a potential deal on a condo in a great neighborhood near the medical center, but have no experience with condos at all. I'm wondering if anyone BRRRRs condos, and if so, are there any pitfalls to consider compared to BRRRRing SFH or multi family properties.

2/2 1100 sqft condo

$15K down (25%)

$15K rehab

$110K ARV

I've never refi'd a condo before and am curious how it compares with refinancing SFHs. Do lenders look at them any differently? How much should I expect back for my next deal based on the numbers above? I was estimating 75% of the forced equity ($50K) which is around $37K.

Thanks for your time.

Lyric