All Forum Posts by: Rodney Sums

@Paul Sanchez Well, I have alarms going off in my head at the 85% cash out, LTV on a 4-plex...I have never heard of any lender doing that - ever. It's hard enough finding lenders that will write 80% LTV on single family homes right now. So this one broker saying that they can write 85% cash out on a 4-plex...that sounds impossible. I'm assuming this is an investment property - so if it's anything different let me know.

However, if they have prequalified you...they should be able to provide you a prequalification letter. Make sure that letter states 85% LTV, cash out refinance. MAKE SURE. And will your rate be higher than your purchase loan? This is a question for your broker. If they can in fact do this, they would be the only lender in existence who can, and if we assume that they can write this - that means they are the only one that can answer that question. For all other loans, a cash out loan will carry a higher interest rate than a purchase. I mean, I cannot answer for all 8,000 lenders here - but in 99% of the scenarios a cash out loan will have higher rates or higher fees with them.

Hope all of that makes sense.

As you eluded to, my guess is that quote is based on an owner occupy to get 15% down in a MF

Paul are you planning to live in the building or is that that the lender believes?

1 Vote

Quote from @Jason Eiceman:

I had a sewer related repair that the tenant took it upon themselves to get repaired after hours.

Tenant paid for the service/parts already and offered to pay half due to it being after hours (me reimbursing the tenant for the other half).

Any issues with this to consider? Maybe tax related considerations?

Thanks!

What happened exactly that they felt it was urgent enough to make the repair within hrs and not consult you first?

Ar you self managing with no maintenance staff?

Wer you able to conclude for certain they didn't cause the problem?

0 Votes

Quote from @Erika Geoffrey:

Thanks for your input!

I tried to ask for updated lease agreements, proof of payment, etc. but apparently that's not really something they ask for in the states.

Where did the notion come from that proof of income is not requested in the states? It certainly is.
When considering small towns, and particularly small towns here are concerns that come to mind:

Available quality property managers

Availability of trades and services

Politics in the area. I don't just mean political party but who's in power, who is affiliated and what impact small town relationships may have on you. Consider and look up "Old Boy Networks"

Local court systems, especially with you being foreign.

0 Votes

Upstate New York, New York

Quote from @Misha Gounder:

Thanks guys for the responses! These ex tenants lived for about 2 years, and there were no violations filed during that time. They moved out March 31, and filed a small claims case Jun 14th. They also complained to the city on Jun 14 that the interior of the home was not built to code. @Henry

@Henry T. @Drew Sygit what do you think about counter suing them? I did not deduct for loss of 1 week's rent, moving furniture back, and cleaning after the floors were repaired as I was told by an attorney that these charges cannot be deducted from security deposit. What if someone let their current landlord know they have troublemaker tenants with a history?

Youd want to consider how challenging it would be to collect on them if you won a judgment and if it's worth your while.

Yo had them sign an inspection checklist prior to moving in right (may have missed it)

Ask more than one attorney for feedback. The one you spoke to may be entirely correct and you'd be mad if you took the advice of other investors that were wrong. Attorneyshey are known for scaring the hell out of people to get a retainer. If you do get an attorney Then yes a countersuit may be appropriate because the attorney will be expensive.

0 Votes

San Francisco, California

Quote from @Jin Zhang:

Hi everyone,

I am new to Phoenix and thinking about buying a single family rental near the downtown Phoenix area, since I would like to rent it out to traveling nurses. It seems like all the hospitals are around that area. However, the crime rate seems be very high according to the crime map. My questions are the following:

1) Is phoenix a good city to rent to traveling nurses?

2) Should I avoid buying in the downtown area (the square circle the word Phoenix on google map) due to high crime or other factors?

Thanks! Any advice would be greatly appreciated!

3) Do you have any recommendations on where to invest in Phoenix, especially for traveling nurses?

Thanks,

Jin

I'll even take it a step further on what @Scott E. said. You could go even ONE block between a million dollar historic home to a street where there's a bunch of grown men on boys bikes wearing back packs and backwards hats. Ironically, even properties in those areas appreciated substantially.

Speaking as a nurse, what's the draw wanting to cater specifically to traveling nurses? Keep in mind there's many other medical professionals that travel like doctors and scrub techs (assist surgeons). Don't put yourself in a box. There's also a lot of people who aren't in the medical field that need short term rentals.

Downtown is going to cost big especially if you're looking to cater to medical professionals. Contact nursing agencies and ask them which hospitals tend to have the greatest demand for travel staff to get an idea what area to target.

1 Vote

Phoenix, Arizona

Quote from @Bruce Woodruff:

Quote from @Rodney Sums:

I may just give STRs another look now

Dude...I'm 2 hrs north of you. Work you a deal, my man......you'll never stay in a hotel again!

Flag? Sedona? Prescott?

Got that good weather now!

0 Votes

Atlanta, Georgia

Quote from @James Hamling:

Lot's of posts about all kinds or fear, warnings, terror this and that of R.E. collapse/crash being eminent, any moment, about to happen etc. AND how it's going to wipe us all out.

I and many have replied and written at extent on this and yet it persists without relent, the sky is about to fall and we will all be crushed by it. So I thought I'd do this differently, I have a VERY simple basis, 1 simple single data point I will stand upon here, data source listed and should be beyond legitimacy of data source. I stand upon this 1 item that I have 0% risk or fear of any collapse that will end us all like the dinosaurs of old because if following BASIC standard practices, all one has to do is NOT SELL and wait, maybe a few years.

I base my standing on THIS data, that NEVER in our lifetimes has the R.E. sky collapsed and "killed all". That all anyone has EVER needed to do is hold and wait a few years. EVER! And huge 30%+ drops are NOT some every few years cycles etc.. That ALL the Doom-Preaching is just that.

My ask, nah CHALLENGE is PROVE ME/THIS WRONG. Prove how this 1 simple fact listed below is wrong, that by following the basic standard investment real estate practices as defined ins standardized investment property finance for leverage and standard practices of operations etc. that all one has to do is WAIT and not only not loose $ but will profit, is incorrect.

People with short horizons are the ones that may have a legitimate reason to feel the sky may fall (i.e. flippers)

Otherwise, for the buy and hold investor concerns about a crash are risks for buying at a peak rather than the ensuing trough that would be more optimal.

1 Vote

Quote from @Scott Trench:

I was talking to an investor friend today and he mentioned that he really slowed down the last two to three years.

know that a lot of folks who post heavily in current times are likely active and building aggressively, but I wanted to hear from folks who maybe have paused a little bit and pulled back.

Anyone here stopped in the last 24 months and really hit the brakes for market driven reasons?

What have you done? Why did you pause? What would be the catalyst to getting back in the game aggressively?

Im looking at that pause button this year and the finger is hovering over it. Here's why

Rates increasing cutting in to cash flow

Property taxes doing the same thing rates are

Vendors of particular trades, especially general contractors are challenging to get when rehab is needed

Sellers I've dealt with this year, on or off market, feel they can and should get full ask or above with no repairs even when they're moderate to serious repairs

Due to aforementioned challenges I'm concerned about buying with all advantages to sellers when the market is showing a RISK for declining (risk is emphasized because I'm not one for predictions)

2 Votes

@Bruce Woodruff

@Jon Martin

Bruce You had me rollin with the soggy banana and cheerios comment. You're right though. Hotel breakfast was rarely anything to get excited about. COVID gave them an excuse to make an even worse "breakfast"

Jonathan those are true points. It is often unsettling to spend that kind of money for a room that is obviously very 1965 on the inside with paint slapped on it and some vinyl flooring, and the furniture looks like an episode of Saved By the Bell

What's even more annoying is how they have their staff come pounding on the door at 9am when check out ain't for 2 hrs and you're trying to get that last hr of sleep in. Hotel staff yelling and bumping their cell phone music in the hall. I may just give STRs another look now

2 Votes

Atlanta, Georgia

All Forum Posts by: Rodney Sums

Rodney Sums has started 25 posts and replied 558 times.

Post: It's not possible? 850 FICO for a RE investor?

Post: BRRRR Method Using HELOC with Rising Interest Rates

Post: Repairs paid by tenant and reimbursed?

Post: Would you purchase a deal in a small town?

Post: Disgruntled tenant turning hostile

Post: Should I avoid buying properties around downtown Phoenix?

Post: STRs: The upside to a pending recession....

Post: 0% Risk for R.E. Collapse '22'/'23' - Prove Me Wrong

Post: Experienced Investors Who Have Hit the "Pause" Button Recently

Post: STRs: The upside to a pending recession....