All Forum Posts by: Murray Reginald
Murray Reginald has started 29 posts and replied 74 times.
Post: Looking For A Strategy To Purchase My Rental Property
- Investor
- Posts 75
- Votes 15
Quote from @Kyle Momany:
@Murray Reginald
If you're planning on BRRRR'ing the property you can always use hard money, then refinance. Just make sure you're being conservative with your numbers. Check out Kiavi. They are one of the most common hard money lenders.
Best of luck!
Hi Kyle,
So if I used a hard money lender, when should I refinance and why?
Post: Looking For A Strategy To Purchase My Rental Property
- Investor
- Posts 75
- Votes 15
Hi BP,
I am trying to figure out how I should proceed with purchasing a property, I can get 75K from my home equity but what if the cost of this property is 125K, what is the best strategy to purchase this property without exhausting all of my resources $$$, I have a line of credit of 15K and A+ credit. I will be using the BRRRR strategy and wanted to see if there were any other strategies I could use to purchase this property.
Post: Turnkey Investment for Multifamily Properties
- Investor
- Posts 75
- Votes 15
Quote from @Charles Carillo:
The numbers really depend on the size of the property. Larger, and newer properties, will have a lower vacancy rate (in most instances). For smaller, and older complexes, you want to use a higher vacancy number. Property management will run on a similar scale. The lower the number of units, usually, the higher the fee for the management. A single-family property might have a 10% management fee, while a 50-unit property might have a 6% management fee. It is important when comparing management companies to take into consideration all of the fees that each company charges you. From the hourly fee for their handyman to the lease renewal fee.
Since you mentioned warranties, I want to just clarify that in most situations, warranties are not worth purchasing (if the seller gives you a warranty, great, but I would not purchase one). There are many limitations, time delays, deductibles, etc. If an AC goes out during August, your tenant is not going to be happy if you wait a week for the correct technician to come out, review it, and then wait even longer for the warranty company to tell you what they will cover.
Turnkeys can be great for some investors; however, be aware that a lot of the value has already been added when you purchase it from them. You are a yield investor at this point, not a value-add investor.
Thanks!!!
Post: Renting Out My Personal Property
- Investor
- Posts 75
- Votes 15
Hi BP,
I am considering renting out my personal property to purchase another property and using some of my equity in my personal property to use as a down payment to purchase another property however, my Lender does not allow (FlagStar Bank) me to pull equity out of my property do to Texas laws, I was told I can find another lender to get the equity but the rates are 8.99 - 15.99% for loan repayment, I am looking for a lender that allows a higher % of the equity, my credit is good (815) so I'm sure I would be at the lower % however, is this typical for the equity loan to be that expensive? Is this a good strategy to use? I currently have about 30K cash as a down payment but did not want to exhaust all of my cash, I also have money in my 401K that I could roll over to an SDIRA as well, please let me know your thoughts.
Post: Turnkey Investment for Multifamily Properties
- Investor
- Posts 75
- Votes 15
Hi BP,
What is the best strategy to use when buying a turnkey property? How much profit are the turnkey companies making off of the deal? With that being said I realize analyzing the deal is crucial, but this will more than likely be a new build with a warranty so what numbers should I run? (i.e. Repairs 5%, Vacancies 5%, CapEx 5%, Property Management 8-10% etc...) I am looking for a Multifamily property to make passive income to eventually retire withing the next 10 yrs. is this possible?
Post: Analyzing Deals for a Turnkey Investment
- Investor
- Posts 75
- Votes 15
Thank you all for the recommendations!!!
Post: Analyzing Deals for a Turnkey Investment
- Investor
- Posts 75
- Votes 15
Hi BP,
As I get closer to purchasing my first Rental Property, I wanted to be very clear on a couple of things in regards to analyzing deals, I've read The Book On Rental Property Investing by Brandon Turner, in the book Brandon speaks about the numbers for analyzing a deal and I wanted to be sure since this book has been out for 7+ yrs. Can someone please confirm the numbers I should run for analyzing a deal? Are the numbers realistic in 2023? I am looking at passive income (Turnkey Rental) and wanted to make sure I get the best deal I can possibly get by having accurate numbers so I can make a sound decision. Your input will be greatly appreciated.
Repair - 5%
CapEX - 5%
Vacancies - 5%
Property Management - 8%
Hello,
I was listening to the BP Podcast and heard a commercial about a company called Rent To Retirement, I was wondering if this would be a good investment strategy to obtain a good cash flow, ROI has anybody ever used a company like this? They have all of the numbers calculated however, I am not sure how accurate they are. I am new to investing and would like to know your thoughts.
Post: House Hacking Multi Family Properties vs. Single Family Properties
- Investor
- Posts 75
- Votes 15
Quote from @Lawrence Potts:
Quote from @Murray Reginald:
Quote from @Lawrence Potts:
Quote from @Murray Reginald:
Hello All,
I really like the idea of house hacking however, I purchased a new home 3 yrs ago, I am looking for additional cash flow and was thinking of a Multi Family properties. Is there a work around to make this happen? or should I stick to Single Family properties? I love the idea of Multi Family properties but I am not sure about living on the property and not sure what to do with my home. I am educating myself before I pull the trigger and would like to know your thoughts. I am highly excited about attending my first REIA in Houston on 18APR2023 and looking forward to meeting like minded people.
I would suggest talking to a lender to see if you even qualify. What they’ll probably want to see is either you selling your home or renting it out to offset that mortgage payment. It may be negatively effecting your DTI to buy if you don’t remove the payment or offset it with rental income.
If I were in your shoes, I’d keep it as a rental unless I had A LOT of equity in it. Even if I had that much equity in it, I’d see if I can get a HELOC and use that as a down payment.
You have to go with 3.5% FHA on a multifamily 2-4 unit to owner occupy, otherwise you’re going conventional with significantly more down. However, FHA is very picky in making sure they are not being used as a investment product. They could determine that since you already own a SFR that you can’t go multifamily because they can see you trying to buy it as an investment (the goal of FHA is to make homeownership more affordable). That’s why I think you need to talk to a lender that has house hacked or owns a lot of property.
Either way, if you can get into a multifamily, I say do it. Utilizing that income allows you to scale quickly. If you can’t, go SFR. But I love the strategy of house hacking and I think if anything it’s going to help buffer you during a big recession/lose your job/sky is falling.
Hope that helps!
Thanks Lawrence, I was actually thinking about renting my home to dive into the house hacking however, I heard that I could possibly do a DSCR Loan for investment properties or would this only work for Single Family Properties.
The DSCR lender also is an investor and suggested I look at Air B & Bs and Multi Family Properties to create more cash flow, so I know the direction I need to go in, I have to be creative with my down payment of 20% which can get costly for a 300K plus property.