All Forum Posts by: Tsipora Smith

If you go with a portfolio lender or a DSCR loan they have more flexibility to set their own guidelines.

Typically you're looking at a private lender, hard money lender or construction loan. Private and hard money will typically only go up to 75% of ARV. This means they would lend $138,750 based on your ARV. Some HML will lend 100% of the rehab but I think you might want to take another look at these numbers. Sales price of 185k-12,950(closing costs) - 5500 (holding costs interest payments + utilities for at least 90 days) - 25,000 (rehab) - 118,000 purchase = 23,500 profit.

The 250k approval that you currently have is what type of loan? If it is conventional or FHA, then you actually qualify to purchase the property because their approvals are based off of single family income. With a duplex, you'll be able to count the rent from the other side of the duplex as income which will increase your approval enough to qualify on your own.

Quick question: Are you running the CoC calculations including the "rent" of the side you're living in? Even though you are living there, that lack of rent/mortgage you would be spending to reside somewhere else counts as part of your return.

@Richard Loniewski thanks, I checked but you guys don't lend in Texas

@Tarik Turner Texas

Texas is a fantastic place to invest. For one you are more likely to see much more cash flow than in California but you also get really good appreciation. If your focus is cash flow, small multi-family will help increase that. Consider pairing the BRRR method as well to make your 185k stretch even further!

Yes, most HML are concerned about the property and your experience as an investor. They are asset based lenders and the property is the asset.

I use apartments.com They have an option for landlords to collect rent for free. It then gives me direct deposit into my bank.

Whoa! Sorry you're having to deal with all of this. Here's a few of my thoughts. Yes I would evict the older fellow because he is in violation of the lease by allowing illegal activity to take place in his apartment. I'd also tip off the police so hopefully they catch the grandson in the act and he will be gone as well. Cameras are a great idea but they will simply be vandalized if that's all you do. I would ask the PM what their suggestions are. What can you do to keep them and to turn around the environment. Low income does not have to equal a headache. I'd also use their assistance as sort of a parent. To my understanding evictions, illegal activities, etc are all cause for them to lost their government assistance so I would get in touch with their case managers as well. It sounds like you need to turn the whole place around. Request increased patrols as well.