All Forum Posts by: R S

 Thank you. Are the rates lower on Freddie small balance loans?

 Thank you for the reply. I know everyone touts the economy of scale in buying larger properties, but it seems like 2-4 unit properties may actually make more sense given you can get cheaper financing plus 30 year terms and 30 year amort. What am I missing?

I've got a few 30 year DSCR loans on duplexes and typically got them at about 20-30 basis points more than 30 year traditional mortgages were going for the time. The current going rate from my lender for a DSCR on a duplex is about 7.0-7.2%, give or take.

I'm trying to move up to 5-20 unit multifamily and will need a commercial loan instead. How do those rates compare to DSCR and traditional resi mortgage rates? Are commercial loan rates on small multifamily signifiantly higher?

I have a small portfolio of duplexes and triplexes. I'd like to get into something larger, potentially either 10-20 unit MF or a small office building. 

My strategy is buy-and-hold. I want to big a long-term, cashflowing portfolio that I can retire with. So far, I've bought my entire portfolio myself. No outside money. But if I want to grow, I may need more outside money. 

Unfortunately, the traditional syndication doesn't really work with a buy-and-hold strategy. Investors need to exit, and that involves the sale of the property 5-8 years after purchase.

I've been scratching my head to think of a way to make this work. Would this structure make sense? Has anyone done something similar?

1. Investors come in as LPs and receive 90% of all profits. No complex waterfalls, just a straight 90/10 split. I would coinvest as an LP as well.

2. No acquisition or other fees.

3. We make it clear that between year 5 and 8, we will refinance and pay them back 100% of the principal. At that point, they exit the partnership and I regain 100% ownership. 

I apprecite any input. 

I'm hoping to make my first investment purchase soon with cash flow as the goal. I had planned on either doing a SFR or condo but recently had a crazy idea. I'm considering purchasing a 1200-1600 square foot office condo and then building out 4-5 "executive office" suites of 100-150 square feet each. I would outfit each with a locking door and then lease them out individually to professionals who need small single or two person offices.

I think this has the potential to create more cash flow than an SFR or condo in my situation and spreads the risk of vacancy nicely. Has anyone done this?

I am planning and researching my first real estate investment. Lately, I've been drawn to the idea of office condos for cash flow.

My plan would be to purchase an office condo somewhere in the neighborhood of 1000-1500 square feet and subdivide it into 3-4 individually rentable offices for professionals and other small businesses in need of single offices.

Has anyone dealt with an office condo? What are the drawbacks to this plan?

Thank you for the help!

Brand new member and hopeful first time real estate investor here. I'm very happy to have found this forum!

Because I only have around $15,000 liquid to invest, I'm looking to purchase a single family condo/townhouse as my first rental property. I'm hoping to put $15,000 down and leverage an additional $50,000-60,000 through a mortgage. I have a few basic questions about which steps to take first.

After forming an LLC, should I go and get pre-qualified for a mortgage first? Or should I begin looking for a property first and then get pre-qualified?

Speaking of getting pre-qualified, is it better to contact banks directly, or to go through a mortgage broker?

Should I work with a buyer's agent, or should I check listings on websites and then contact the individual agents when I see properties I think would be suitable? Is there a benefit to using a buyer's agent and doing everything through him or her?

Thanks very much for the help!