All Forum Posts by: Tim Delaney
Tim Delaney has started 1 posts and replied 778 times.
Post: Rent out Individual Office Spaces
- Buffalo, NY
- Posts 788
- Votes 527
Quote from @Stan Boshart:
Do you think that demand will be high for something like that? I feel like there will be lots of people that are ready to get our of their home offices! How would you advertise or market it?
You would have to know your market. I know there are a lot of professionals in the suburb that I am looking that need a place to meet clients but don't necessarily want to go to their downtown offices regularly. LinkedIn, Chamber of Commerce, signage and Networking for marketing
Post: Multi Family Investing Cons
- Buffalo, NY
- Posts 788
- Votes 527
Why do you think the demand is low?
Personally I love quadplexes. I have a bunch. They can be sold to owner occupants that get a conventional, fha or Va loan. Or they can be sold to investors.
I think they are particularly attractive for new investors to buy as a house hack - you live in one and rent out 3, most, if not all, your expenses will be covered.
Look at what it last sold for, has it appreciated? Without knowing the specifics of the neighborhood or property I would expect it to appreciate the same as other 1-4 units in the area over the next decade.
Post: What would you do in my scenario. Looking to purchase second property as investment.
- Buffalo, NY
- Posts 788
- Votes 527
That HE loan would make you cash flow negative on the first property, especially considering you are not even factoring in any repairs, maintenance, vacancy or management. Personally I don’t like being cash flow negative on properties, but I guess if you have an amazing W2 and a good reserve account and the new property is going to cash flow really well then maybe consider it. I would also only do this if both properties have solid appreciation potential.
If it was me, I'd consider trying to get a HELOC on the first property and use the funds for a flip or a BRRRR so I could pay back the line of credit within 6 months and then go do it again.
Post: To Sell Or Not To Sell
- Buffalo, NY
- Posts 788
- Votes 527
If you lived in the property for 2 out of the last five years then you wouldn’t pay capital gains up to a certain amount. Otherwise you’d have to look into 1031 to avoid those. I’m not an expert, but I don’t think you could live in the new property if you 1031 nor would you be able to access any of the proceeds for personal reasons.
Post: $1.5M to $3.125M in 18 Months
- Buffalo, NY
- Posts 788
- Votes 527
Awesome deal, thanks for sharing! Love seeing good things happening in a neighboring city.
Curious, you mention converting this to apartments? Is that going to be in phases or will you be removing all the office tenants at the same time?
Look forward to hearing more as this progresses!
Welcome! I find on-market deals all the time. I flip and BRRRR so I'm looking for value add opportunities. If you are networking with realtors anyway why wouldn't you have them bring you deals that are on the MLS? At the very least you get practice running numbers and if you share your thoughts with the realtor they will have a better idea of what you are looking for in the future.
Post: Rent out Individual Office Spaces
- Buffalo, NY
- Posts 788
- Votes 527
I’ve been looking for the same near me. There is nothing illegal as long as the property is zoned correctly.
Post: AI assistence for leasing
- Buffalo, NY
- Posts 788
- Votes 527
Quote from @Caliana Johnstone:
@Tim Delaney. Thank you for that. I heard ChatGPT is a good one.
One of my rental properties is located in a low-income area, which presents unique challenges in finding suitable tenants. The no-show rate for prospective tenants in this area tends to be quite high. Therefore, I prioritize pre-screening applicants to ensure they meet the qualifications before arranging a showing. (Tedious process)
Unlike my other properties, where most applicants meet the criteria and need to see the unit to decide if they like it, this particular unit appeals to almost everyone (In this demographic)—but many fail to meet the qualification requirements. To streamline the process, I want to ensure applicants qualify before scheduling a viewing.
It would be beneficial to implement an AI-based system to consistently and efficiently ask prospective tenants the pre-screening questions I currently ask repeatedly. This would save time and ensure a fair, uniform process for all applicants. (I had chat GPT optimize this response, Lol)
That's a good point—I have similar rentals as well. Ideally, I’d love to integrate an AI chatbot into Zillow to streamline communication. However, I’m hesitant due to the risk of the chatbot going off script and potentially leading to discrimination claims. Since Zillow doesn’t allow live links in messages (even links to articles on their own site), it’s also challenging to direct people to my own website, where integrating a chatbot would be much simpler and more effective.
Post: I need loan options for primary residence
- Buffalo, NY
- Posts 788
- Votes 527
Quote from @Allen L.:
Quote from @Tim Delaney:
Quote from @Allen L.:
Quote from @Tim Delaney:
That seems odd to me assuming you aren’t in a highly negative cash flow situation. Are you trying to afford a house much more expensive than your W2s could cover? Or do you have too many conventional loans on your investment properties?
No and No. Also there is no restriction on acquiring conventional loan on primary residence even if you have maxed out on conventional loan for rentals. What is odd? Have you tried to apply for conventional mortgage when you have a lot of rentals? I maxed out my conventional rental loans when I had around 20 units, and that was basically hellish.
Basically all rentals, even ones owned under LLC, come up during loan DD as long as you file them under one tax return as personal, that was what happened to me earlier.
I’ve bought my primary with various Schedule C income and refinanced a primary with lots of schedule c and a number of properties (mostly owned in LLCs but reported on my personal return). The bank asked a million more questions than I get asked when applying for commercial loans but it was never really in doubt that I would get the conventional 30 year loan that I wanted on my primary. As @Jay Hinrichssaid, the underwriters are usually more confused and take a longer time, but the loan officer should at least be able to get you a quote for 30 fixed on your primary. Good luck
I must have not communicated clearly. It's not worth my time to deal with the hassle of conventional loan anymore, so I don't even consider it as an option. That's also what the lender told me, it would take too long and thus make me as a buyer less competitive once we're in UW.
Gotcha! Makes complete sense - it is a hassle! However, for a primary, especially if you plan to be there a while then it may be worth the hassle. The seller doesn’t need to know that the underwriters may give you more of a hassle than other buyers.
Or do you have lines of credit or a private lender so you can make a “cash” offer then try to get the financing through before close or at worst just do a cash out refi after close?
Another option may be a credit union or small local bank that would consider doing it as a portfolio loan, but the rate and term may not be as good as conventional 30 year fixed.
Post: I need loan options for primary residence
- Buffalo, NY
- Posts 788
- Votes 527
Quote from @Allen L.:
Quote from @Tim Delaney:
That seems odd to me assuming you aren’t in a highly negative cash flow situation. Are you trying to afford a house much more expensive than your W2s could cover? Or do you have too many conventional loans on your investment properties?
No and No. Also there is no restriction on acquiring conventional loan on primary residence even if you have maxed out on conventional loan for rentals. What is odd? Have you tried to apply for conventional mortgage when you have a lot of rentals? I maxed out my conventional rental loans when I had around 20 units, and that was basically hellish.
Basically all rentals, even ones owned under LLC, come up during loan DD as long as you file them under one tax return as personal, that was what happened to me earlier.
I’ve bought my primary with various Schedule C income and refinanced a primary with lots of schedule c and a number of properties (mostly owned in LLCs but reported on my personal return). The bank asked a million more questions than I get asked when applying for commercial loans but it was never really in doubt that I would get the conventional 30 year loan that I wanted on my primary. As @Jay Hinrichssaid, the underwriters are usually more confused and take a longer time, but the loan officer should at least be able to get you a quote for 30 fixed on your primary. Good luck