All Forum Posts by: Shaydon Childers

I am in the exact same position and currently trying to network in Washington state. My wife is also a new real estate agent and I have a couple of friends who are investors looking for more deals as well. Good luck on your search and your with your new family!

I am confused.... I thought rental insurance covered the tenants personally belongings in case of fire, theft etc? Do the policies also protect the structure if the tenant trashes the place? I thought that's what my insurance policy was for (landlord insurance).

Hi everyone,

I would like to get some opinions from wholesalers on what the best strategies are for picking up off market, distressed properties. My wife is a new real estate agent and we are both new investors. We are in the Kitsap County, WA market and the housing supply is still pretty low in our area making deals hard to come by. I would also be interested in connecting with a wholesaler in my area to help find a flip properties for two investor friends of ours.

Hi Mary, I have a SF rental that is in an LLC. I asked around for a HELOC and got turned down by a few lenders. One offered me one but they wanted my to draw 70K immediately so they could start charging interest. Then my credit union (BECU) whom I bank with but don't hold the mortgage with offered me one with no automatic withdrawal requirements. The current mortgage is a conventional fyi.

Very curious as to why you couldn't do either of those things. I would consult a tax advisor/preparer who deals with clients in real estate. 

Talk to him and tell him you need to sell the house and his "collection" will deter potential buyers. Buy a vacant piece of land close by and offer to store his stuff for free until the house sells. 

Or make him an offer to buy it all from him right before you put the house of the market. Then get creative and get rid of it all. 

I used to do landscaping and junk hauling for free for the neighboring houses when I was employed by some flippers doing renovations. I know the extra time and money sucks but it might save you in the end. Good luck!

I am also a new landlord and just rented my first property last August. It's a really nice house that I put a lot of effort/money into remodeling myself. I had a family willing to pay 6 months of rent in advance with good credit, financial statements etc. They were relocating to the state so the husband could attend a specialized shool in the area. I chose to rent to a local law enforcement officer instead because he had a steady job, good credit and lived locally. My thinking was he would be a longer term tenant with less risk of not being able to pay (after 6 months). So far it has gone really well! I wish you luck with your decision. 

David,

I just got done doing this in Washington State. I bought a house with 0 down in 2019 using a down payment assistance program. I used the knowledge I had from a 6 month residential construction job I had in my late 20's and completely remodeled the entire house while living there with my family. I had to ask some for experienced friends a few questions along the way but the house turned out great. Four years later I bought another house and turned the first one into a rental property. Some words of advice. I used a conventional loan with down payment assistance because the appraisal process is less strict than FHA or USDA and the bathrooms were barely functioning. The rate was pretty high but I refinanced 2 years later and it all worked out. A 203k Rehab loan might be an option but you will need a licensed contractor to work with you on the remodel. You will need a lot of tools if you don't own them already. Look for deals at your local pawn shops for tools. Good luck! This is a great way to get into your first house in a very unaffordable time to buy.

Thank you for the reply. I have no debt other than my mortgage on my primary and a mortgage on my 1 rental. My primary has 0 equity because I just bought it last summer. The rental has quite a bit but it's at a 2.875% rate that I wouldnt trade for this deal. What about doing a bridge loan for the initial purchase? Make some cosmetic repairs and then straight into DSCR? I imagine I would be close to 75% LTV after light repairs. Would a down payment be required during the transition from the Bridge loan into DSCR? Is that considered a refinance by the banks? Sub 2 won't work. Wells Fargo wants the 70K from his mortgage deferment during covid which is the reason he is in this mess.

I am looking at an off market deal to help a neighbor and make a long term investment. My neighbor needs to sell and doesn't want to move. I wanted to propose he sell to me at a 20% discount and I would lease it back to him for an extended period of time. 

Home Value 510K

Purchase 400K

How can I leverage the instant equity instead of making a down payment? I was told I need 15-20% down for a DSCR even with the discounted price. If you buy with another loan type could you refinance into a DSCR at 80% LTV and not have to make a down payment? If someone can tell me how to do this deal with less that 20K out of pocket I would appreciate the help. Loan assumption isn't an option here. My DTI is maxed out too. The lease he signs if done will meet the debt service on the loan or I wont make the deal.