All Forum Posts by: Ross Kerne

I am from and invest in Lafayette, but do not live there. 

PM - Buddy Glass at BG Realty. I self manage my properties right now, but out of all the local PMs I’ve talked to, he is who I will pull the trigger with when they become to much for me to manage (hopefully).

Agent - Charles Ditch at Keaty Real Estate has a solid service for investor friendly listing. Look him up.

Lender - Your lender can be anywhere in the country, but I use Jared Gary at Assurance Financial (in Baton Rouge) to finance all my properties because he is very competitive and is an investor himself. 

Sounds like a decent arrangement, but I think some details are missing to understand the entire picture.

Can you provide more details of the deal your found?

Are you planning to purchase the condo with the LLC or your personal name?

I’ve puchased a beach condo in Orange Beach and Gulf Shores with conventional financing, 20 and 25% down. Nothing creative. I’ve heard of low 5% and 10% down loans, but you can expect higher interest rates and it’ll be tough to cash flow. 

Yes. One umbrella across multiple states that I do not live in. I live in TX and my rentals are in LA and AL.

I have 4 properties in LA and 2 in AL that are in my name with conventional financing. I recently purchased a $1M umbrella policy, because because I don't want/can't refinance them under an LLC. Even if you have an LLC, you need to make sure you are operating them correctly, where you personal and business aren't mixed, to utilize the full protection of the LLC. I have liability on each property, but if I was found negligent, the umbrella would help protect me and my other properties.

My auto policies had to be increased to 250/500/100 to be eligible for the umbrella policy.  I combined my auto and multiple home policies at the same time, and the savings was the same amount as my ~$600/year umbrella policy.

 I wish I could have bought in 2009. I have a unit at Tidewater OB and Lighthouse GS. 

I’m familiar with the area, but not that complex. Which resort is that?

@Joseph Boyd, 

Referencing your question of "buy my first home and build equity or just invest in a rental". You can do both by house hacking just like @Craig Boutte suggested. I would renew your lease for 3-6 months, and start looking for a small multi family property (2-4 units). Don't rush the process, because it might force you to buy a bad deal just to meet a timeline. 

The only stipulation with the FHA loan like Craig suggested is that you need to live in (owner occupy) the property for at least one year. You said you will be in Lafayette for 1-3 years, but I don't know your timeline. I think there are exceptions if you are forced to move for work (and similar situations) but owner occupying the property for one year is one of the main stipulations for the low down payment FHA loan. You don't have to go with an FHA, but that is one of the best/easiest ways to get a low down payment of 3.5% instead of a 20-25% on a conventional investment property loan.

I own two duplexes in 70501. There can be rough spots in that zip code, but there are nice gentrifying areas that are being purchased by young families and older couples that are turning the neighborhoods around. Let me know if you have any questions. 

 I have two beach front condos in Alabama. A 1B1B in Orange Beach and a 3B3B in Gulf Shores. 

The ReMax search engine linked below is the best resource I have found for short term rental listing. Once you figure out the site, you can drill down exactly what you want from Alabama to Panama City. What you find out where and what you want, get in touch with a solid local property manager and they can feed you the rental income numbers you are interested in.

https://www.condoinvestment.com/orange-beach-al-gulf-front-condos.php

@Brandon Johnson, I sent you a private message. Check your Inbox.