All Forum Posts by: Ryan Husser

Hi Juan! 

I would ask what the fee is for. Locking the rate itself shouldn't cost anything, however many lenders will charge the appraisal when the rate is locked. This is usually the only out of pocket cost before closing. 

If you are waiting to order the appraisal but wanting to lock, I don't see what the charge would be for. Hopefully this helps!  

Hi Zack! 

If you're just getting started and want a smaller multi-family (2-4 units) the MLS would likely be your best bet. In AZ they are in older parts of town, so you can't be super picky with location. In general there aren't a ton of small multi-family properties in the Phoenix area. Another option is to go off market, as you will be fighting many other buyers with MLS properties.

Usually, out of state there are more options for multi-family. For example in Ohio, they are much more common in Cincinnati, Cleveland, Columbus, etc. because these cities are much older than Phoenix. Hopefully this helps! 

Hi Solomon!

For the most part as long as the numbers work and it cash-flows, getting approval on the second, third, etc. loans is pretty straightforward. Most conventional lenders will cap you out at 10 active loans at once, however if you are working with a smaller bank or portfolio lender then it is completely up to them on how many loans they will approve you for. Hopefully this helps! 

Hi Brenda! 

Honestly that would be a great strategy if you ant a SFR residence down the line. The lender will be able to use income from your multi-family as long as you have an active lease and are able to show a paper trail of rental income. Usually they will look at bank statements and previous years tax returns for this info.

In addition, if you can get a future dated lease and rental deposit most lenders will also apply that income from the unit that you are moving out of. The tricky part of this is the timeline for when you move out and get into escrow with the new SFR. Hopefully this helps!

Hi Kobe! I use apartments.com to manage my one rental. With one unit, it isn't too much trouble for me however if you have many properties you might want to look for something else. 

It was a little tricky getting our tenant's bank account verified for rent collection, but overall it does the job. They have lease templates that you can customize as well as which is nice. Curious to hear what others have to say, but as far as free software it isn't bad! 

Hi Mark! 

The nice thing is with the HOA a lot of your Cap ex. and repair costs should be lower. You'll still need to budget for some bigger ticket items such as appliances or AC units. But repair wise the biggest one would be plumbing or water leaks. These can get pricey fast for even a condo. I think if you budget 10% of gross rents for cap ex. and repairs, plus the HOA fees, that should be enough set aside for anything that might come up. Hopefully this helps!

Hi Abigail! 

I believe the idea is that since the home is renovated, you would force appreciate the property thus increasing its value. When you refinance it, you get your initial capital back and you rinse and repeat. Basically this BRRR method like you mentioned. Hopefully this helps!

Hi Chris! 

I love using Realtor.com. It has a lot of the same info as Zillow or Redfin but it has a super useful crime map which use all the time. All sites are connected the the MLS so the info should be fairly updated, but it can be delayed depending on the market. Hopefully this helps!

Hi Courtney! 

The county uses a slightly different process for property values, for assessing taxes. It sounds like you are speaking more in terms of a BRRR strategy. Unless you are refinancing after the rehab is done, you will not need an appraisal. Think of it like compound interest, the sooner you fix everything up the more likely it is to appreciate faster than if you waited on a rehab. All markets are different, but this is more of a rule of thumb than a set in stone rule. Hopefully this helps!

Hi Kristen! 

Normally that will be used to start the policy at closing for the first 12 months. Each additional amount collected that goes into escrow would normally be a part of the following years premium (2022 in your case). They also might collect a little extra each month to account for rate increases over time. But overall it evens out over time and that money would be refunded to you if you ever sold or refinanced the property. Hopefully this helps!