All Forum Posts by: Neil Garceau

I have an investment property which I bought almost a year ago for $365k, $271k on a 30 year fixed mortgage owed.  Moderate rehabs with comps nearby selling in the mid $500k range.  Monthly 1 year rental history is $4,200 per month with leases in place at this same rate carrying through next May.

Looking to completer the BRRRR and do a cashout refi and the bank who I have the $271k loan with said they could not do a cash out refi2 j as I don't have a traditional W2 job currently and my 2020 taxes show my investment properties as operating as losses (I have 4).

This is just one data point but this doesn't seem to make sense to me.  Standalone, the property I am looking to do the cash out refi cash flows over $2k/month with a locked in rent role and 1 year history.  

Does this make sense that they wouldn't lend against? I am not sure if this person at the bank gets it. How do people refi under the BRRRR if this is the case?

Please suggest names to explore

Also. Only rent to out if state students. They generally have more money from the parents. If you are going to pay out of state tuition to go to URI, you probably have money vs. in-state.

I have 3 properties in Narragansett (Bonnet Shores) and bought my most recent 3 weeks ago. The key to success is a good product. Nicely rehabbed and furnished. People say “this place is too nice for college students” but I have never had a problem. Short money making it nice gets you better tenants that appreciate a nice place. Use a PM who does a lot of diligence on renters and make sure parents co-sign the lease and collect full semester in advance. Dad does not want little Susie ruining his credit because she is late or can’t pay so collection not a problem. Also dad does not want daughter living in a pit off campus and willing to pay. Also, kids have BMW’s in the driveways and I am able to get at the high end per bedroom $750 because they places are nice with new stuff from Wayfair that is cheaper but looks nice. Able to book next academic year in October of the prior year. 
Best locations are those that have strong weekly summer demand as they are close to the beach. Rule of thumb is that what you get in the school year per month you should be able to get in the summer per week. June is a dead month though since school is out and summer vacations haven’t started yet. Again, make it nice. People don’t want to spend their summer vacation in a dumpy looking place that can be easily updated.

Francois,

I have two investment properties in Bonnet Shores and curious if you ever went with a builder and what your experience was with them? Neil

I am working toward closing on my first duplex I am purchasing with cash from my self directed "checkbook" IRA I set up over the past few weeks. Objective was to diversify some of my stock market exposures. My thought is to do an interest only non recourse cash out loan if there is such a thing and put those funds down on another property. The spread between the rental income and interest only payments will be a few thousand a month.
Does an interest only non recourse loan even exist? Has anyone ever done this?

Thanks. May I ask where you ended up buying?

Thank you Brian. This is helpful.

I own a college rental in RI that has been terrific. In Worcester which college areas are most desirable? I am early into exploring Worcester and my understanding is that Holy across now allows for off campus living due to their housing shortage. What are the boundaries of a desirable walk to campus that would attract this group?

Thanks for the feedback. The property is actually a 3 level multi unit with 2 bedrooms each on View Street. I was curious as to the rental demand for each unit if updated (floors, paint, appliances). On street parking only