All Forum Posts by: Rob Bianco

@Brian Adzadi
Yeah we went to Wells Fargo and they offered 5.3% whereas the regional bank offered 5.75% and I figured it's better to go with the better offer.

I think my next quote coming in on Monday is from PNC bank

My wife and I are newly wed and we're about to buy 3 properties. We applied for a mortgage in her name since she has a credit score in the mid-700's. Mine is in the mid-600's and I'm self-employed, so I figured it's just easier to put her name on everything to get the lowest interest rate for the investment.

Turns out I can't gift the funds to my wife for the Down Payment? The bank basically told me it's against the law and to get on the mortgage with her and accept a higher interest % or sell her stocks/bonds to prove she has liquidity because she doesn't personally have the funds for the Down Payment.

The situation really blindsided us because we're ready to rock n roll and now we hit a brick wall. Has anyone been in this situation before or have any advice on what I can do? Should I find a different bank? 

I don't know what the interest rate will change to until next week - so not sure if it'll be viable

One thing that concerns me a little bit is that the roof is 15 years old. Most properties I've looked into sellers understand they should replace the roof before putting it on the market, but that doesn't seem to be an option here. I'm hoping that if I take ownership HOA doesn't come after me within my early stages of owning the property for 1/4 of the cost to replace the roof. That would pretty much kill the investment.

I'm looking into buying a 3 bed 2 bath in Lee's Summit. It's a single unit within a fourplex and HOA fees are relatively low at $65/month. It's a nice property close to town and I'm thinking it'd make a decent rental.

I haven't read the HOA agreement yet, but I've read a lot of concerning things about the HOA making life tough for landlords here on Biggerpockets. The other tenants in the fourplex are owners and I'd be the only renter, although the current seller has been renting his unit out for 10+ years.

I'm wondering if anyone has any experience with HOA in Kansas City or Lee's Summit or if there are any red flags I should look for in the HOA agreement etc...

The price per month on the $1k deductible is $148/month and the $2.5k deductible is $136/month. Works out to $144 more per year

Maybe someone here with experience will have some insight as I'm still trying to figure out the best approach to insurance, but I think I've found a provider that I like in the Midwest (Kansas City area). 

I've got 2 options apparently. $1,000/deductible (more cost per month) or $2,500 deductible (less cost per month) to file a claim. Not sure how often mother nature requires claims to be filed in this part of the country. How serious is wind and hail in the area? Anyone have a recommendation so I can maximize my ROI ?

The homes are in A-Grade neighborhoods with relatively new roofs

Hi all,

I'm about to close on 5 units. The seller of the properties has owned these properties outright and hasn't kept rents up to market; he's roughly $300 too low per unit. He's even let half of the tenant leases expire. Nonetheless, I'm going  to end up paying market price for the homes and it will take me some time (I presume 1-3 years) to get rents up to what they should be without losing all my tenants simultaneously.

With that said, I was going to leave a larger down payment (roughly 45%) so I can squeeze more income out of these properties until rents can get raised, but I can't decide if that's the best move. It would be a 5% ROI if I paid the 30% down which the bank has asked for at the current rents.

Alternatively, I can always just live with the 5% ROI and just go buy more properties and keep accumulating homes. I've never been fond of the idea of using more cash, but it does leave a lot more breathing room to cut your mortgage in half.

I'm having a hard time figuring out how to best use the money at my disposal.

Background: I'm about to close on 2 duplex's and 1 single family in Kansas City, MO. The average cost per home is $175,000. I live in NYC and I'm having a Property Manager oversee everything. I've been looking for quotes on insurance. The properties are all brick, built in the late 70's/early 80's, and are in A-Grade neighborhoods. My lawyer has suggested each property be held within its own separate LLC to minimize risk to me in case of lawsuit for whatever reason (i.e. trip & fall etc..)

The current owner, who lives in the area (but not in these properties), is paying respectively  $1,000/year per home. Everything is in his name. 

I was just quoted from an insurance broker $4,500-$4,800 a year per property because I'm out of state, putting everything into an LLC, and he's insuring each home for 1 million dollars. I can't help but feel like that quote is outrageous, but he claims it is reasonable. That would be more than 4x's what the current owner is paying. I have a hard time believing just because I'm out of state and putting it into an LLC that the price would skyrocket like that.

Does anyone have any experience, advice, or help they can lend?

Does anyone have a Resident Agent Service Company that they stand by as a recommendation? Seems there are a handful.

Hello,

I'm an out-of-state investor creating multiple LLC's for the various properties I'm buying in Kansas City, MO and I need a registered agent in Missouri. Does anyone have any experience with this? My lawyer said they would do it for $89/year per LLC, but I can't help but feel there are cheaper alternatives? I'm not sure if a UPS Mailbox would be suitable - the lawyer said it would not be.