All Forum Posts by: Paul Winka
Paul Winka has started 83 posts and replied 312 times.
Post: [Calc Review] Ocala FL new build dilemma - what to do?

- Rental Property Investor
- St Louis, MO
- Posts 317
- Votes 72
I have a new build in Ocala, FL for $245K with a non-refundable deposit of 10% that was signed in October 2021. 3/2, 1357 square feet, 2-car garage. It’s expected to be ready to close in December 2022. The model looks like this, please check this link. Notice the asking price for the new ones is around $265K - $270K, more than mine. I can’t imagine anyone that would buy at that price at today’s rates.
Rents are expected to be $1650 - $1750. Insurance is around $700/year. Taxes, should be around $4K/year.
I started shopping for rates in early September, and then I was getting mid 6s. As I kept shopping around until now (October 2022), I am getting 7s, 8s, and now some as high as 9.5% for fixed rate 30-year DSCR loans. I am not eligible for a QM loan. I fear this will only get worse in the coming weeks.
By my calculations using 9.25%, 4% vacancy / repairs monthly, 10% property management, I’d be negative cash flowing at least $300 per month, and that’s after 25% down, not 20%. These are with the 5-year prepayment penalty too.
I already own one home built and managed by this same builder and am very happy with it. They are built and managed well, so that’s one plus. I don’t expect much difficulty in the way of renting it, dealing with repairs, etc. And the appreciation has been and should be decent going forward.
I am at a loss as for what to do. Bridge loan? Interest only loan? Turn it into a short-term rental? Buy it, then sell it just to break even? Just tough out the next couple of years and refinance? Negotiate with the builder?
I am happy to share my spreadsheet too.
*This link comes directly from our calculators, based on information input by the member who posted.
Post: Attorney to seek & collect judgment in Harrisburg, Pennsylvania?

- Rental Property Investor
- St Louis, MO
- Posts 317
- Votes 72
Hello, I have a rental that some inherited tenants left in poor condition, around $10K. I need to find a attorney that will go beyond just collections, but go the point of garnishing wages, and if possible get on charges of vandalism.
Any recommendations are appreciated. I don't necessarily need an attorney in Harrisburg, but that would be preferred.
Post: I've had enough. Need to fire a mortgage servicer.

- Rental Property Investor
- St Louis, MO
- Posts 317
- Votes 72
Quote from @Dave Skow:
@Paul Winka- you will not be able to have the servicing changed so once they have your taxes and insurnace all squared away - ask them to end the impound accounts on the loan and then you can manage these yourself ...more work but once you have this set up - it will save you the pain / hassle you are dealing with now ....also - in additon to calling - try to get an email for the servicing dept that you can use and keep a thread/ record so you can continue to send the thread to newe people as they rtry to assist
@Dave Skow, would they really end the impound accounts at my request? At the point that the loans are at the servicer, who is the decision maker as far as ending impound accounts? When I have asked the service before, it's gone nowhere.
Post: DSCR loans and LLCs - which state?

- Rental Property Investor
- St Louis, MO
- Posts 317
- Votes 72
Quote from @Nick Belsky:
You'd work through title with the attorney. More than likely, you'd never actually speak to or hear directly from one. Your escrow/title agent is the one who handles them.
Cheers!
I am looking to get 5 properties at once, and may put each in an LLC. I created my first LLC in MO way back when and the fee was $1000 for just one of them and like to avoid that if possible.
Post: DSCR loans and LLCs - which state?

- Rental Property Investor
- St Louis, MO
- Posts 317
- Votes 72
Quote from @Bobby Feinman:
Another important point in addition to the ones already provided is to create a separate LLC for each DSCR loan that you do for asset protection purposes. Don't put multiple properties in the same llc unless you have to. The only time you would have to is if the loan amounts are not sufficient (100,000 min per property.)
Bobby
@Nick Belsky @Bobby Feinman @Matt Cartwright
I know how to create MO LLC from doing it a few times on the MO secretary of state website. It's super easy and fast. Then just file an foreign LLC in FL afterward, which I can probably figure out. I feel I can do the legwork myself. Would you still advise me to deal with attorney?
Post: DSCR loans and LLCs - which state?

- Rental Property Investor
- St Louis, MO
- Posts 317
- Votes 72
I am in MO. If I am buying a property with a DSCR loan in another state and want to put it in a LLC, does the LLC's state matter to the lender or affect the protection the LLC provides?
Post: I've had enough. Need to fire a mortgage servicer.

- Rental Property Investor
- St Louis, MO
- Posts 317
- Votes 72
I kicked off 4 loans last year as a borrower, some involving multiple properties in one loan. My loans were then sent for service. The mortgage servicer has been just awful from the start. I know "awful" is subjective, but in my case I am still fighting with them to pay the property taxes that are now more than 3 months late on 4 properties, despite me telling them early on about the problem. Also, out of nowhere, my bank account was drafted for another customer's mortgage and it took three months to get it stopped. They're not replying to emails, they just fall into a black hole. Countless phone calls lasting 40 minutes or more. There is much, much more, but I won't get into that here.
Time to bring out the big guns. Their ever-so-helpful reply of "sorry for your inconvenience" isn't enough. I want to get them fired and have my loan serviced elsewhere. I am contacting the originator to see what remedies they can provide. Meanwhile, I want to see what advice I can get here. Even if it will cost me a little bit by hiring an attorney, or something else with teeth.
What can I do?
Post: Can I still get a qualifying loan in my situation?

- Rental Property Investor
- St Louis, MO
- Posts 317
- Votes 72
Quote from @Wayne Brooks:
Quote from @Trenton Engle:
Hey Paul,
So because all of your properties are under commercial loans except one, you can get 9 more properties as private residential loans. So in short, yes you can!
I'll shoot you a message for any further questions!
@Paul Winka
Not exactly…if the properties are in your individual name, as opposed to an llc, these commercial loans still count toward your limit. The “10 loans rule” is actually that you can’t get a conventional loan once you have 10 Mortgaged Properties (not 10 loans)…it doesn’t matter what kind of loans they are (conventional, commercial, private, etc).
No lower interest rate for me then! I'll be forced to do commercial. So the lesson here is that there is no reason to get a commercial loan in your own name, and that it is always better to put it in an LLC so one can enjoy having the 10 conventional loans?
Post: Can I still get a qualifying loan in my situation?

- Rental Property Investor
- St Louis, MO
- Posts 317
- Votes 72
I used to have 10 qualifying loans active, but as I have bought more properties, I have refinanced out of those 10 qualifying loans and replace them with commercial loans. As it is now, I only have one qualifying loan (filling one “slot”), but 15 commercial loans. I am under the impression that I could get 9 more qualifying loans other than personal residence loans. I have received differing answers from agents, lenders, and colleagues on this. I can’t tell if this is driven by the total properties I have (more than 10), or if each person is given a slot.
Properties are for new builds in Marion County, FL, for what it is worth. Happy to take referrals.
Post: Does a foreclosure wipe out a lease for inherited tenants?

- Rental Property Investor
- St Louis, MO
- Posts 317
- Votes 72
Quote from @Dwayne Poster:
If the action you sought before the courts was against the borrower and all that resided on the property, and that action was ruled in your favor, you have vacant possession. Every foreclosure I've worked with includes 'tenants on the land'. Omitting them in litigation could be a problem
@Dwayne Poster Since this is not an eviction for cause on the part of the tenant, I would expect the legal process to take longer to give the tenant time. Have you noticed these types of evictions taking longer?