All Forum Posts by: Mike Stahlman

Hi, we are investing in North West county and St. Charles, County.  We have 7 rental houses and a good relationship with our current bank but they want us to stay in St Charles county since they are in Wentzville. So we are looking for a good portfolio lender in St, Louis, specifically North county.  Anyone have a good recomendation?  

Thanks

Nick Jones Handyman Services is also good. PM me for info.  They work for us in Florissant and St, Charles, Mo. 

I guess this post was uninteresting 🥺

I think this is a link to the BRRRR Calc I did. If the copy and past works if not pm me and I will send you a link. Maybe I need to be doing the Interest only and converting it using this calculator. I changed a few numbers but let me know what you think. Thank you.

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Hello, I am looking for some options on financing.  This house will be our 6th rental.  We have also flipped a few houses.

I am running in to a problem where the cash flow is good and it would be great to add this to our portfolio.  However when we purchase a house like this we almost have to do an interest only loan like a flip with 20% down and they can give us draws on the repairs.  Then wait almost a year to have it appraised before we can turn it in to permanent financing.  Other wise the house is appraised at the purchase price.  We want to purchase this, fix it and then refinance it.  With 6 houses like this we are looking for other alternative methods to finance the full amount up front.  Any ideas?  I hate paying the interest for 6-8 months then re-finance them.  Is that the game we have to play or are there alternatives we not finding?

Thank you in advance for any help.

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*This link comes directly from our calculators, based on information input by the member who posted.

Avoid Berkeley they have a new rule as of 2017 where only a percentage of homes per street can be rented. After I think 30% the streets must be owner occupied. We purchased one a week after the ordinance went in to affect and had to sell it which is challenging under 80k. 

We also avoid the St Louis bubble. Around the city because most of it is a war zone. Not to say there aren’t ok properties there but finding good contractors there is challenging. 

I think most of south county and west north county is ok. St Charles County is generally ok also. Not sure about anything else yet. 

Hope that helps. 

Investment Info:

Single-family residence buy & hold investment in St. Charles.

Purchase price: $90,000

Purchase to rent for college students

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

College near by.

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

MLS Made decent offer, needs updates and repairs

How did you finance this deal?

Interest only

How did you add value to the deal?

Paint, Carpet, Deck, kitchen

What was the outcome?

Not complete

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

Yes, Melissa Stacks, Brookshire Hathaway

Hi John, the key to Section 8 is to properly vetting the tenant.  Property manager or not - use a good highly recommended company to check any and all potential renters for rental history, legal history, prior evictions, arrests, employment history, etc.  The company we use, has a web site, or form, they fill out the application, and they pay $30 for their background check.  We get nothing out of  the fee. Weeds out bad tenants, if their not willing to pay they probably aren’t good anyhow.  If they do and there is anything in their history a good background check will turn it up. Don’t bypass that step or think you have a good impression.  It is not worth it. It is your hard earned investment and you want to be as sure as possible it will stay in good condition. With that mind set, Section 8 rentals that aren’t in war zones can be very good.  

Thank you @Scott Smith, I very much appreciate this information.  I will run it buy my Lawyer and ask why he did not ask any questions.  Makes me wonder.  That will let me know if I need to be working with someone else also.  Since we are new.  How ever in fairness I did not send that question set to him.  I asked him to do the quit claims and he asked me for a retainer.  I will go talk to him before I move forward.  But this is a good place to start with a real situation.  Thanks so much.  We need to do some actual planning instead of just asking for things.  It is probably always better to say what we want and why, and get a schooling on what we need.  I'm always blown away to find out stuff I don't even think about.  Sometimes it is overwhelming and sometimes it is just what I need to say, "Ok, it is time to see a doctor on this one."

Hi, We have 5 SFR rentals currently we have also flipped 5 also. We are actively seeking the next property, but the issue here is... we are working on financing. So far we always purchase our houses in our LLC and we pay cash for them or use an Interest only from our local bank, but to get them financed after the rehab we have to move them using a Quit Claim to our personal name and then we can finance them with 25% down and a 30 year loan for rental BRRRR. If we leave them in the LLC, the option is 20% down but a 3 - 5 year ARM which I do not like, and amortized over 20 years makes the payments higher (we are working on good cash flow still once this is good enough we can work on building more equity). We were going to do a portfolio loan but the best interest rates we can find are about 2 points higher and the fees are really high all around. Our local banker says if we Quit Claim them to our personal name, then get them financed, we can then do what ever we want after they are financed. We have worked with this bank on about 6 houses so far and they have been great. Good rates and very personal. I know we could run in to a bank calling a loan at some point if we Quit Claim it back to the LLC after it is financed. But I would really like some one to let me know if we are getting the right benefits from the LLC. Tax wise I think the LLC (partnership Member managed My wife and I) is better because the houses don't show up on Schedule E. (less chance of an audit) Is all this the wrong way to look at it? What are the strategies other investors use?

Thanks,

P.S.  This business is tough but I am so glad we started three years ago.  I wish we had started 30 years ago.  I can only imagine...