All Forum Posts by: Mark S.

@John Underwood, any idea whether or not there’s a step-up in basis on those properties when you pass?  Are the LLCs single or multi member?

Thanks   Would that be you?  lol

One other minor detail, if it matters: loans are in my personal name and rentals are in my SMLLC. It'd be nice to have it all under the LLC to be consistent.

Thanks @Curt Smith.  Sounds really interesting.  I was PM’d by someone at Pimlico Group.  They appear to have programs with 30-year fixed loans as well in mid-to-high 4s.  I am looking to keep these rentals long-term.  I’d love to be able to either cash out refi, lower the interest rate, keep the payments the same OR simply refi the loans at current values, lower interest rate, and juice the cash flow a bit.  My weighted average investment property loan is right around 5% (from 4.75% to 5.25% on 30-year fixed).  Just almost seems “too good to be true” that I can refi into one loan at about the same/lower rate than conventional loan.  Other than the prepayment penalty (which I don’t care about), what’s the downside?  I guess having to coordinate/pay property taxes/insurance manually vs escrow, but that’s not a deal breaker, just forces me to remain organized.  

Am I crazy to refi out of my plain, vanilla, Fannie/Freddie 30-year fixed mortgages…or am I crazy not to if I can?

Real estate friend of mine said his local credit union is offering him a portfolio loan in the mid 3s on his residential property on 30-year fixed loan terms (not just 30-year amortization, loan term of 30-year fixed).  Sounds almost too good to be true to me.  He, his lender, and the properties are all in the same state (Indiana).

I’m wondering if there are any lenders who can do that for me.  I’m in Kentucky and properties are in Tennessee.  5 single family rentals currently on 30-year fixed conventional loans.  I’d be interested in hearing if anyone else is familiar with this.  I’d always thought portfolio loans were either for commercial property or if for residential, had “worse” terms (shorter loan term, higher rate, etc.)

I'm considering investing in a class A multi-family syndication in Tallahassee, Florida.  Obviously the pitch deck is made to promote the area - employment, rent growth, etc.  Wondering if anyone living in / investing in this area has any thoughts on class A multi-family in this space.  

Sponsor is purchasing for about $180K/unit.  Built about 15 years ago.  Plan is mostly interior upgrades to boost rent by targeted $250/month.  Rent comps show similar properties with rent premiums of about $250-$450.  

Project performance projections look mostly strong; wondering if I'm missing anything that's glaringly obvious to those more familiar with the market.

@Chris Clothier, when do you think you guys might enter the KY market and what product type/price points do you think you’ll be offering?  I’m in KY but am a passive investor that would love something here but also want to be 100% hands off. 

Ouch.  I would have hoped they would work with you on the difference.  Will they instead pay the $500 for a new appraisal (that will hopefully come in higher and that the bank can lend on)?

@Jonathan Beaumont Considering their waitlist is approaching 2 years, I’m sure they’d have no problem getting another investor to buy it.  With that said, I believe they will also offer you the option to simply switch and get another of their properties.  You could always run into the same issue, but personally I never have and I have several rentals with them.  The last one I purchased, I actually bought at $2K under appraised value; it’s now worth about $20K over what I paid (not that I really care because I bought it for cash flow and do not have plans to sell).

What is the purchase price vs appraised value on your deal?  What are your numbers (rent, expenses/reserves, and cash flow)?

@Abigail Cariaga, Mid South Home Buyers.  Waitlist is extremely long, though.  I worked with one other Memphis group, but wouldn’t recommend them. If only I could find another group in Memphis like MSHB but a shorter/no waitlist.