All Forum Posts by: Matthew Masoud

The pros are I can use this money to build up my war chest. Deals are coming and my funds are lower than I'd like them to be. Also after the refi I'd only be in the deal $41k skyrocketing my cash on cash.

The cons are, I'm increasing my interest rate by a point and this refi would put my DSCR right at 1.2 meaning this property would be cash flowing very little.

Would you refi?

0 Votes

Quote from @Brian Cauldwell:

Hi @Matthew Masoud, I think you touched on the biggest issue with mid-term rentals.

"I'm also having trouble refinancing these properties because banks hate seeing anything but LTR. So even though I bought a distressed multifamily and stabilized it, I'm unable to access the cash."

In my mind, this is the biggest reason why mid-term rentals are a headache. Most lenders are going to want there to be a 12-month lease for any property type.

For 1-4 unit rentals, they would look at market rents.

However, I have not run across a multifamily mid-term rental. Very interesting. I will shoot off a couple of emails to some of my lenders and see what they say about that and refinancing a property of that type.

Let me know if they get back to you.

Most banks said they will refi based on long term market rents. Some said they won't do it at all.

I also can't refi in Frannie/Freddie.

1 Vote

Dayton, Ohio

Quote from @Tracy Ross:

Hi Matthew,

Are you managing these yourself? And if so, will it kill your cashflow to get a good property manager? That can ease a lot of the headache of multiple turnovers. Sometimes you have to see where you can actually leverage back your time.

Otherwise I think LTR's are ALWAYS a great strategy if you're into it for the long term equity potential. Then, like you mentioned you can refinance and repeat- building your portfolio!

My VA takes care of most things and he is MUCH cheaper than paying a property management company 15%-20%. If I'm paying 20% to a manager than LTR is the no-brainer.

0 Votes

Dayton, Ohio

I'm considering getting out of the Mid-Term Rental Game.

I purchased 30 apartments (two 10 units, a 6-unit, and a 4-unit) for the purpose of running them as Mid-Term rentals.Currently, half of them are being run as MTRs while the remaining are still LTRs.

My MTRs average $1,600/month while the LTR rate $900/month.Now that I have some data, I wanted to compare apples to apples for MTR vs LTR revenue.After adjusting for the increase in Insurance, my VA for communicating managing, and supplies/increased repairs it's looking closer to $1,200 for MTR compared to LTRs $900.

It's a lot of extra headaches for $300 more per month.

I'm also having trouble refinancing these properties because banks hate seeing anything but LTR. So even though I bought a distressed multifamily and stabilized it, I'm unable to access the cash.

The numbers still work great as a long term rental but ever since I ran the numbers comparing the two I realized it's not as profitable as it looks on paper.

For context, im in a small tertiary market (Dayton, OH) and most of my apartments are 1 bed / 1 bath with some 2 beds.

4 Votes

Dayton, Ohio

Tenant is 3 months late on rent. We knew she was pregnant and we tried to get her rental assistance through multiple programs to no avail. We made it clear at the end of the 3rd month She would have to leave.

We need her rent to pay the mortgage, tax, insurance, ect. Out of the hundreds of evictions I've done in my career, this one is going to sting the most.

0 Votes

Quote from @Tabitha Bean:

My novice status will show here...I recently purchased a 4-unit multi-family property in Washington, DC. Though this has seriously boosted my net worth, it has stuffed my cash flow into the trash.

I have a significant amount of equity in this and other properties, but thanks to this property shooting my DTI so high, everywhere I go I get shot down for HELOC's and personal home improvement loans. I did some research on Fund & Grow, but it makes me feel uncomfortable because I have no experience with something that CREATIVE. I have one high credit card balance that I am able to pay down now, but I can't even apply for Fund & Grow's services for 3 months after the balance is paid down.

My contractor and crew are waiting for the word today though. This is a real growing pain for me as I am leveling up as an investor. I am feeling discouraged because I am hoping to continue to grow my portfolio, excited to purchase more single-family homes without any doubts about my ability to manage my portfolio with great success. But not if I am stuck without any access to financing. I think this is a knowledge issue and that many of you out there know ways to turn this situation into a fairly simple solution.

Grateful for any advice!

First, $45k rehab for a single unit is crazy. I'd get other quotes to be sure the pricing is right. Full gut rehabs, in my experience, cost about half that.

Sounds like you'll need hard money but be sure you have a strategy to refinance and pay them back after the rehab.

0 Votes

Washington, DC

Quote from @Kyle Baxter:

I would guess timing in the market plays a much bigger role than time in the market in the context of real estate. I don't think I could start now with my preferred strategy and be terribly profitable due to the inflated rates and prices (i know technically rates are still on the lowish side). I'm sure there are still strong strategies out there though.

Quite the opposite. Even if you buy an objectively bad deal, hold it long enough, and history shows you will come out on top.

0 Votes

There certainly are parts of Dayton you want to avoid. Try to stick to markets like Kettering, Oakwood, and Beavercreek. You'll pay a slight premium but more stable cash flow.

1 Vote

Dayton, Ohio

It's mostly about what kind of properties are you looking for.

You'll have trouble finding cashflow in a market like Raleigh but the appreciation is expected to be aggressive.

On the other hand a market like Dayton will likely have strong cashflow in exchange for little appreciation.

Market is heavily dependant on your goals as an investor.

0 Votes

Quote from @Matthew Perez:

Quote from @Matthew Masoud:

1. Make sure you are on all the platforms.

2. For FF tenant have a direct booking site where they can finalize their reservation.

3. My best source to connect with traveling agencies as been furnish finder. Every once in a while I get an agency asking about my listing. Even if I can't accommodate the one they are asking about specifically, I make an effort to build a relationship with the agency.

4. Have teams to handle repairs promptly.

Thank you! I am listed on Furnished Finder, for almost two months now. Unfortunately. haven't had much success, as I have yet to receive a direct booking request. I have received two general housing requests, but 98% is unmatched housing requests, to which i've responded to all, regardless of whether it matches up or not.

Do you use FF message, or do you text/email the client off the platform?

If they have contact information, I'll use that. If not, I use FF messaging.

1 Vote

Fort Lauderdale, Florida

All Forum Posts by: Matthew Masoud

Matthew Masoud has started 43 posts and replied 319 times.

Post: Would you Refinance this Deal?

Post: Getting out of Mid-Term Rentals

Post: Getting out of Mid-Term Rentals

Post: Getting out of Mid-Term Rentals

Post: The Dark-Side of Real Estate. Evictions

Post: Rental needs emergency repairs, personal DTI too high for personal loans

Post: Success Rate in Real Estate...Shockingly Low

Post: Starting my investment journey in Dayton, OH ! Whats your BEST advice ?

Post: Texas vs north carolina?

Post: Seeking Mid-Term Rental Connections