All Forum Posts by: Mike Zahniser

@bill 

@Bill C..... Yeah man! anytime. 
We live and invest in Rockford IL currently. 

@Daniel Dietz I need your banks info!

Right now with covid, the 2 that I work with, they dont want move much as they are unsure of the future of the job market and ability to pay. 

The other one is talking 15 years amort at 65% ltv

@David M. We do not plan to pay them off anytime soon. We do have 5 or 6 paid for and im sure we will come into more. But right now its all about speed of growth and speed of accusation so that we can generate as much income as quickly as possible. 

We plan to buy 9 more by the end of the year and by the end of next year be at 40 total. 

We have so much cash flow that even if things change a lil we will be ok. 

We plan to use as much leverage as possible. We are only financing 35k per property so its really not a big deal

Traditional Vs Commercial Financing?
In the last 2 years, my amazing wife and I have purchased 15 SFH and 3 duplexes (21 doors all worth 50-80k each) that we have rehabbed and rented with the plan to hold for ever and use to be financially free.

Currently we profit an avg of $400 per month per property.

We plan to continue and pick up at least 9 more by the end of the year using a commercial line of credit we have against a few we own outright and BURRR them.

We currently have them financed/owned as followed:
- 8 are on traditional 30 mortgages at 5.5-6% (best we could get last year on investments)

- We currently have 5 properties on a 20 year amortized
commercial loan for 5 years.

- We currently own 5 outright that we have a commercial line of credit against.

-OPPORTUNITY-
Our commercial loan guy said he could roll all of our loans (they are all at the same local bank) traditional and commercial into one commercial loan at 4% amortized over 20 years for 5 years.

This will lower out total monthly payment by $150 per month and theoretically cut 10 years off the repayment.


**Here is my QUESTION:
Would you take the traditional loans off a fixed (not currently amazing) rate and roll them into a better commercial loan that needs to be renewed in 5 years?

Pros:
- Higher monthly cash flow
- Theoretically faster payoff (im sure we will pull all the equity out asap anyway)
- Free us up to make traditional loan purchases again
(this will give us different opportunities to buy houses in a changing market down the road)

Cons:
- Interest rates could go up in 5 years (though, most of our properties moving forward will be on this type of loan anyway).


DO WE roll them all into one commercial loan or keep them as as they are????

Id say it depends on the type of rental.. WHat class. We have 19 C class rentals, We paint them all semi gloss white... Doors floor, trim and walls. They are clean and bright. Also easy to touch up when they move out.. No cutting in. 

Our tennants arent that picky. 

If you were in an A or B rental, then the colors and decor may be more of an influence... 

Can you paint it yourself? THat may cost you $50 and some time. Vs if you have to pay some one could be Hundreds... Hundreds prob wont be worth it for sure. 

Nice! We have bought 19 in the last 2 years. All SFR and not short term, but the key is hammer down on the gas!

Speed of acquisition is my main focus so we can get to our financial freedom number. We only need 6 more.. 

Keep Rockn!

Nice! What are the details of the deal, what do you have in it and what is it renting for, etc. 

Whats next?

@karam, I usually set aside $50 per month for repairs and $50 per ml onth for vacancy when I run my numbers and just leave that in acct.

I really dont care tho cause I make good money and can foot it.

Plus adding a mortgage only costs you about 200 per month.  If it sits for 1 month, no biggie

Closing costs- just call a few credit unions or local banks and lay it out to the and ask. 425 for an appraisal  and a few Huno for misc bs. 

But same thing, end game, it's the cost of doing business with other peoples money ;) 

Paid is Paid, they dont have to answer you or maybe they are just out of town for the holidays

Nice find... Do you plan to use the 15k to do it again>?