All Forum Posts by: Nicholas Sheridan, Jr.

Just closed on my first SFH 2 weeks ago and I am AMPED to have finally defeated paralysis analysis and joined the club. Quitclaim deed has been initiated and the property is officially in the LLC's name. Let the fun begin! Here are the dirty details:

• Purchase price: $112,502
• 25% down
• 3.375% int rate (paid ~ $1,500 in points)
• 3 bed 2 full bath with 4th non-conforming bed in the basement
• Detached garage and carport
• Property taxes $1,127
• Insurance $1,050
• Property management 5%
• Rent $1,250
• Vacancy rate 5%
• Maintenance and repairs 6%
• Oh **** fund 5%
• Cash flow $421/month

My main issue going forward (like many fellow investors) is having enough capital to purchase more properties. I am able to find great (> 1% on the 1% rule) properties but I don't want to wait 6 months to save up enough cash. Time to get the BP book on no and low money down and also find some partners!

I was outraged to see some of the quotes I heard back to do a termite/carpenter ant treatment just on the exterior of a house. I did some googling and came across a product that is relatively inexpensive compared to the quotes I was getting. A bottle of this stuff (Taurus SC Termiticide) is less than $50 and can apparently treat pests up to 10 years. I have no affiliation with the product but I think it is just insane that professional companies can get away with charging such amounts when some of the products they use are not even that expensive (and that non pros could still purchase). The website I bought it from is https://www.domyown.com/ (weird name, right?) and I will write a followup post in a couple months to see if this product actually works. 

@Hud Floyd Hey Hud nice to meet you! I am actually trying to pickup my first multi next month.

@Patrick Menefee thank you, those are all good points.

@Dan Barli That is a good point. And FHA is out of the question unfortunately because I will not be living there.

I have taken the BP advice and reached out to 15 lenders (of all different sizes) in hopes of finding one who required a lower <25% down payment on a 2-4 unit property but have had no luck. This is my first property and I would like it to be a multi instead of a SFH. I am short about $10-15k and although I could wait and save up the difference, I would truly like to meet my goal of purchasing the property by the end of next month. 

@Lynnette E. Good point! 

@Damian Bialonczyk Thank you for the pointers! Do you have any recommendations for brokers by chance?

I have a goal set to purchase my first investment property (SFH or residential multi) by April. My next step is acquiring financing so I have reached out to different size lenders - credit unions, regional banks, national banks and I seem to be getting the same response back.

"We don't accept gift funds as part of the down payment for an investment property. The money needs to be seasoned in an account for 60-75 days."

Well, I definitely learned something this week because my plan was to use my wedding funds (wedding is this month) towards the down payment. After doing some research on BP I found suggestions to keep talking to different lenders, commercial loan officers etc. Are there any additional tips you can give? I am really trying to avoid kicking the can down the road once again and prolonging jumping into the RE pool.

Doing ceiling drywall is the worst! You should look at getting a drywall lift, well worth the couple hundred bucks in the long run.