All Forum Posts by: Ryan J.
Ryan J. has started 8 posts and replied 12 times.
Post: high LTV lenders for investment properties
- Seattle, WA
- Posts 12
- Votes 0
Anyone know good portfolio lenders who will lend at reasonable rates with little money down?
We are buy-n-hold investors in the Seattle area with excellent credit, great rental history, etc.
We currently own 5 rentals and roughly break even on the entire portfolio (mix of condos, townhomes and SF homes -- all low fixed rate mortgages). All of our loans originated from banks, but they are more restrictive especially with the high number of loans we already have. We would like to purchase more rental property, but the lending restrictions and the high home values in the Seattle area make it difficult (350+ sq ft).
Help!
Post: Cash Flow or ROI? Which number do you focus on most in an investment?
- Seattle, WA
- Posts 12
- Votes 0
We are long term investor in the Seattle area. Homes near the city average 500k and the "good" ones can easily go for more. Since we're long term, our focus is on ROI. We're still young, and will be using real estate to fund retirement (pensions don't exist and 401ks are volatile). We roughly break even on all of these investments for now. So CoC is less interesting from that perspective. Also, we tend to purchase SF homes near high potential development areas. If zoning laws change, which is likely, we will see tremendous upside from these investments.
However, there are homes in the burbs that start around 250k and produce upwards of 10% CoC which is phenomenal for the area. These are further from the city and likely won't appreciate as much. But its nice to see the positive cash flow, and it helps our DTI when we borrow more from the banks.
So our approach is to consider CoC for homes in the burbs and ROI for the "in city" homes. Btw, the quality of tenants is much better for our "in city" investments. They take better care of the property and are less likely to default on rent.