All Forum Posts by: Tim W.

@Marcus Auerbach I don't agree. I think using LLC's is prudent, if you have any kind of personal asset base. Also, you can secure 30 year fixed rate DSCR loans.

granted, if you're a new investor with no money/assets, it doesn't matter. But your analogy comparing an LLC to a corp jet is not accurate

Hi All- I've got a couple multi's in my portfolio that I've been fortunate enough to buy in cash. But I'm looking at a 5 unit that I'd buy under my LLC and I'm getting rates from a broker between 7.5-8% on 30 yr fixed debt for a $250k loan (35% down).

with the 10 yr at 4%, those rates seem high. Maybe I'm working with the wrong broker? Also, points are between 1-2% and one quote has a$1500 lender fee. Appreciate any insights from someone who has experience in this lower end DSCR loan. Thanks!

Hi all- I'm in a fortunate position that I've been able to buy some good multi's with my own cash, but I'm now looking at buying more properties and will want to utilize some leverage. Question- I'm trying to buy a 5 unit outside Pittsburgh for under $400k. Assuming I put down 30-40%, the loan will only be for around $250k. The quotes I'm getting for a DSCR loan via a broker seem super high... 7-8% rates, 1-2points, $1500 lender fees.

I get many banks and institutional buyers may not like loans under say $500k, but does anyone have any advice? With the 10yr at 4%, I was hoping to secure a 20-30 year fixed loan with a 6 handle. 

thanks!

Hi Jared- I've spent a good bit of time looking at deal in Cincy and found the properties selling for under $100k a door tend to have a good bit of deferred maintenance (roof, electrical, plumbing, hvac). Suggest you plan on an additional $20-40k for things like this.

Follow

Listen to Dave Myers podcasts. He's done deals while living over seas. I invest in the Midwest from the east coast. Having great realtors and PM's is critical. It also comes down to good underwriting. Happy to connect if you want to hear from my experience (and mistakes)

I can’t help with most of your stuff, but I’m non renewing two tenants at a property in Pitt (well my PM is doing so). Expect to not get paid rent! While the non renewal process was done respectfully, both tenants apparently decided to forgo paying rent. Now we have to go the path of evicting. Just be prepared for the lack of CF

I think BP is losing its allure. I'm about to non-renew my pro membership for the first time. I'll live without the few things I still like about the site. 

This post has helped remind me how much things have changed the past few years. Love this site and am very grateful for it, but things have changed and it doesn't provide nearly the same value it did in priory years 

Hi All,

curious for your perspective. On a new C class multi-family building I have, there are a few tenants that are on Month to Month leases, than I plan to renew to long term leases (if they want to as well). The current rents are well below market (ie $500 for a 1bd vs market of $900-$1000). My Property Manager suggested waiting a few months before pushing for a new lease with increased rents, but how long should I wait? 

also, any tips on getting rents up? Anyone had recent luck with the "book binder method"? Thanks!

A lot of variables to consider, but if you've never owned a home, I'd suggest the house hacking route. Go with a conventional loan, buy a 2-4 unit property, learn the business. You can learn a lot with podcasts and books, but nothing substitutes the real experience of doing it yourself