All Forum Posts by: Frankie Woods

I'm looking for recommendations on property managers in the Lancaster, CA area. I currently own a SFR, but I'm looking to pickup a multifamily in the near future. Thanks in advance!

@Jackson Long DTI is a separate criteria from LTV for the banks. Banks generally want your DTI do be below 50% and preferably below 36%. If you are buying cash flowing properties, your DTI should increase. I've rarely heard of having "too much debt". Fannie and Freddie have the 4 / 10 loan limit, but that is a limitation that is not tied to DTI, LTV, and overall debt.

Cheers,

Frankie  

 Interesting.  I do not quite understand why they would care about your rationale.  Out-of-state investors is not a new concept.  Maybe you are just talking to inexperienced bankers or banks.  I have never encountered a bank who loans in a market I'm investing in ask why I was investing there...other than is it a primary or investment property to establish the risk profile. 

BP friends, my team found a commercial property in C-Springs that looks very promising with value-add opportunities.  We have a very experienced PM and contractor in place.

Sale Price: $870,000, Down Pymt: $217,500, Mortgage: $652,500, Mo. Pymt: $3,910 (assumes 5.25% int. rate, amortized over 25 years); Mo. Income: $40,500 . We plan to make these NNN leases.

As an investor in St. Louis, I completely agree with your description of the devastation of churn on your ROI. I'm barely breaking even on my properties there that met the 2 - 3% rule based on my flawed analysis not accounting for increased vacancy and the resulting costs associated with it. Lessons learned. At least I didn't pay a guru I suppose.

Welcome to BP!  I like the potential and stability of the ABQ market.

@Steve Vaughan is accurate.  I believe it's 75% when less than 5 units.  

I see the best reason to do this is the velocity of money concept.  The faster you can find and purchase properties, the faster you can scale.  It speeds up the recycling of your funds, which increases the compounding effect associated with your purchases.

Yes.  Other than the hold (i.e., seasoning) time, the process is the same regardless of the type of financing you are using.  I've done all my BRRRRs except one using conventional financing.

Love this thread!  I've had too man bad deal galore :/.  Bought a condo in '07 that is still bleeding.  Bought some 4-plexes in St. Louis that are mx / tenent turnover nightmares.  I know I should sell, but the pride won't let me.

Just update the value quarterly or annually.  The change shouldn't be much within that timeframe.