All Forum Posts by: Zachary Cummings

Hey @Andy Done!

Congrats on the remote position, first step to Freedom!

I am in SE Michigan so not very familiar with Mt Pleasant however, property managers in the area will be able to tell you the average vacancy %, so if you call a few PMs you can base it off the average of those then add in a cushion to be conservative. You can also do this for late payments/default. For repairs and capex I would go to  biggerpockets.com/multifamilybonus which was is provided in the back of multi family millionaire vol 1 by Brandon Turner, where you can find how to calculate your percentages for multi units.

Regardless of who you contact first, whether agent or PM, I would interview a few to gage the knowledge of said person that will help you succeed.

Hope this helps!

Hey @Travis Olszewski!

Welcome to BP! I'm in SE Michigan a little north of Detroit. If you ever have any questions, let me know! If I cant answer it I should be able to point you in the right direction.

Hey @Bankole Olonilua!

I am a mortgage consultant with Wells Fargo. Terms do vary from lender to lender. You can go FHA (if primary residence) and you go go conventional whether primary or investment. FHA you can put as little as 3.5% down. And conventional DP will vary.

Shoot me a message and I can go into further detail!

Hey @Samuel Descas!

Yes and many other factors as well. You can find population growth @ www.usa.com/rank, unemployment rates @ www.city-data.com, school districts @ www.greatschools.org, job growth and market rents @ www.bestplaces.net, and annual metropolitan and micropolitan statistical area rankings @ www.policom.com. 

There are many others as well but these helped me!

This doesn't help with your question directly but food for thought, conventional loan rates are from the mid 3s to the mid 4s currently. If I were you I would call around myself to similar lenders to see what they look like.

Basically, the income on current rentals may not be used if its not 2 years of income, BUT they can still use the rent to cancel the PITI payment so you may not be receiving income but you wont be getting hit for the debt.

Hey Johnny!

The lender (if using a lender) will usually require a certain amount of money to be put aside in escrow which can range from lender to lender usually 6-12 months of expenses. If you're wanting to put more in reserves, I usually keep 6 months per property then add capex into the account as time goes on.

No problem! Usually they can use the appraisal report that will state the rental comparisons and they can use a % of this for the subject property. In regards to future potential properties, once you own property (that isnt a full 2 years of ownership) then they will be able to offset the full amount of PITI to qualify for you for the potential new mortgage. Even if they wont give additional income on top which might seem small but can help significantly.

Does that make sense?

Yes, this is very doable if you have equity in the residence that the line of credit is on. Some lenders allow up to 90% LTV on your primary residence. Just make sure you factor in the payment that will be on the line of credit you will be making until the refinance is able to pay it off, Good Luck!

The opportunity to go anywhere, do anything and be with anyone I want when I want. Spending my life with my family on our own terms. Have tasted mini retirements that past few years and I strive for full retirement in the next 8. Bring on the deals!