All Forum Posts by: Robin Simon
Robin Simon has started 636 posts and replied 3875 times.
Post: Newbie in North Idaho
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
Quote from @Jessica Taranto:
Hi, I just wanted to hop on here and say I’m brand new to investing and excited to keep learning and growing. If you’re in the Spokane/Coeur d Alene area please say hi. I’d really love to start connecting with local investors.
Welcome - I love the CDA market, such a beautiful town
Post: Connect prior to BPCon 2022?
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
Would love to connect with you and your team prior to BPCON!
Post: Gotchas in Analyzing Turnkey Properties
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
Quote from @Monte Riding:
I'm interested in a (remote) turnkey property as a first rental, and did my first analysis on some turnkey properties I came across today. The seller offered some quick financials that looked great at a glance, and all their properties appear to cash flow $200 to $400+ per month. After doing analysis on a couple of properties however, I quickly found that my assumptions didn't match up with the seller's. In digging further, it appears they are using really aggressive estimates on interest rate, PM, vacancy, maintenance, etc. On top of that.... the purchase price is well above what comps are going for by 20% or more. After using more realistic estimates, cash flow in most cases becomes flush or a bit negative. I was disappointed to find such misleading estimates being marketed to newbie RE investors.
What things should someone look out for as a first time investor in turnkey properties?
I would add taxes to your list - got to watch out if the tax assessment or law changes with a change in ownership in certain cases / jurisdications
Post: Looking for like real estate networking in Maine Portland
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
Welcome! Maine is a great state for real estate investing, a lot of great Short Term Rentals there!
Post: New Agent and Investor with Thomas Brown Investment Group, LLC
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
Welcome to BP! Tough market right now but thats where there is biggest opportunity. On your rehabs, I would recommend being open-minded (and as unemotional as possible) to flipping or BRRRRing once the rehab is done, whichever the numbers say makes more sense!
Post: Wallingford Elmo here!
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
Welcome to BP! Connecticut is a great market for duplexes/triplexes, I see successful deals like that all the time!
Post: Duplex lending standards
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
Quote from @Tim Parker:
I am financing a duplex. The lender wants top of market rates and will only lend to 60% of appraised value. Is this common?
No common - you can still get a DSCR loan for this type of property (assuming its non-owner occupied) at 80% of appraised value (fair warning - rates/points will likely be high)
Post: SFR Fix and Flip in Tacoma, WA
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
congrats - looks like a great flip!
Post: New investor needing direction on how to invest $300k from condo
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
Quote from @Brian Jackson:
Hi Maria, you don't necessarily have to sell it to profit off of your equity. You could do a cash-out refinance to pull up to 75% of your property's value in cash out so you can keep some cashflow and also use your profits for additional investments.
I agree - definitely explore a cash-out refinance for capital for your next investments, replacing W2 income with investments will likely require you to add more properties (this is subtracting if you sell!)
Post: Finding lending options for small MF 5-8 units
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
Hi Gianni -
Some DSCR lenders have a niche multifamily option that sounds like it could be perfect for your situation. The rates are a little high, but they have lots of benefits:
-30-year fixed rate terms with an option to be interest-only for the first 10 years
-Easy qualification with no DTI requirements, or income verification/tax returns
-flexible underwriting (minimum DSCR 1.00x - will only count property taxes and expenses in the expense load, even on Multifamily!)