All Forum Posts by: Seth Wilcock

What LTV can lenders go to on a commercial cash out refi? 7 units in Indiana. 

$110K acquisition + $100K rehab and $300K ARV? Acquisition + rehab would be paid for with cash, so no lines at the time of application.

$3,500/mo gross rent. Superb credit. 

You can get a conventional loan on a 4-plex, but you'll need a minimum 20% down payment for Freddie Mac and a minimum 25% down for Fannie Mae. FHA allows for 3.5% down on a 4-unit Home. 0% down for VA financing.

If you qualify for the Freddie Mac Home Possible Mortgage (income restricted), you will need a minimum 15% down payment effective January 1st, 2021.

@David Warner and @Duane Alexander - It looks like it's either the Castle Point or Dellwood neighborhood.  South of I-270 and East of Highway 367.  It's definitely a C class neighborhood.

@Sakib J. - I've seen plenty of deals out there.  Definitely not a bad market to get started in according to my research.  MO is a landlord friendly state, but I would like to see some more population growth in St. Louis.

@shaun 

@Shaun Keune - thank you!

With interest rates where they're at, people are going to stay in their homes longer, which will ultimately continue to add to the inventory shortage and drive values higher.  If someone bought their home years ago, that means they were able to buy before seeing appreciation levels take off.  With interest rates dropping many are taking advantage of refinancing to get a lower payment.  Let's say interest rates go up to the high 3's and low 4's in the next few years.  It will be tough for a homeowner to want to sell their house and move into a higher payment that could easily be double what they are used to.  Sellers will need large enough motivation to want to sell & buy in a higher interest rate environment where homes are more expensive.  I don't see home price appreciation slowing down, especially as more and more millenials enter into the first time home buyer market.  We'll see first time home buyer numbers increase exponentially as millennials start having kids and start looking for homes in good school districts.

Hi @Pamela Surjadjaja - If you need a solid agent to help you while you're out there, call Mike Ernest with the Indy Metro Home Team at (317) 285-9691.  He's a great guy and has helped me with a couple properties out there already.  He works solely with investors and knows the market better than anyone.

@Jay Styles - Congratulations on getting some capital saved up!  What kind of strategy are you considering with your down payment?  Would you do a house hack and live in the home for a year, or would you be purchasing the home straight up as a rental with no intent to occupy?  Down payments can be much lower for an owner-occupied home (aka house hack), and you may even be able to take advantage of down payment assistance for your purchase.  That being said, you must have the intent to occupy the home for at least a year.

If you don't have the intent to occupy the home and you're going to buy the new home as a rental property from day one, you'll need a minimum 15% down for an investment property purchase, which would cap you at a $100K purchase price (not accounting for closing costs & pre-paid expenses).  

What type of strategy/occupancy are you considering for the home?

Hi there Savannah & welcome to Colorado! Colorado Springs is such a great area and has been a really hot market for a few years now. I'm a Colorado native and fellow real estate investor and would love to connect and learn more about how I can be a resource for you. I have some pretty creative financing options I can educate you about depending on what type of strategy you're looking for. 

Hi @Bernadeau C. - we actually have an All-In-One offset mortgage on our primary residence.  Here is a link you can check out that talks about it -> https://www.cmgfi.com/all-in-o...