Financing options for rental properties

[bclark85]

Hi all, looking for some advice from those of you that have been doing this for a while and are way more experienced than I am. My goal is to start acquiring several single family rental homes here in AZ that generate a steady monthly cash flow. If the deal looks right, I would most likely flip a home if it made me some quick cash to fund the purchase of more rental homes, but for the most part I would like to purchase and hold them as rentals for income.

I purchased my first home 3 years ago when I was 24 and bought it for a great price. I have about 50k equity in it now. I have a great renter in it and I am making about $200 a month off it (nothing great, I know). I recently got married and my wife and I own another home that we live in now and would like to rent out also.

Here is my dillema: We found another home we liked and I tried to get financed for it but was told be 3 diff lenders that I can only qualify for a conventional loan since I already have two fha loans out for my other two homes. I don't have the capital available to put down 20% on a conventional loan. The goal is to buy a fixer upper, fix it up while we live in it, then rent it and move onto the next...rinse and repeat. I would love to hear some of your advice and poke holes in my plan if you see fit. Thanks everyone!

 

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[bclark85]

Tuni ug zua jewi vu jewi tuni efwodi up vjot nevvis? Nz muph visn huem ov vu edraosi tiwisem qsuqisvoit et sipvemt. O fup'v siemmz xepv vu tac mieti og quttocmi cideati nz huem ot vu caomf iraovz op emm vji junit O sipv vu jewi vji uqvoup vu timm xjip vji vonoph ot sohjv. O xuamf siemmz moli vu jies tuni giifcedl.

 

[bclark85]

O edvaemmz guapf e mipfis uav jisi op EB vu howi ni e dupwipvoupem muep ev 5% xjodj otp'v vissocmi. O vjuahjv ecuav avomoboph e qsowevi mipfis, cav topdi O en muuloph vu goy ov aq xjomi O mowi op ov epf liiq ov et e sipvem, ov fuitp'v neli nadj tipti vu hu vjev suavi. Nz neop vjuahjv up vji sipvem tofi ug vjopht ot vjev 1. ov xomm dsievi e qettowi opduni gus vji tjusv sap og O dep qasdjeti ov djieq ipuahj epf djeshi nusi gus vji sipv vjep vji nusvhehi giit epf tuni (xjodj O jewi nepehif vu fu xovj nz uvjis vxu juatit) 2. Ov xomm dsievi optvepv iraovz og O qasdjeti ev e mux ipuahj qsodi epf fu vji sipuwevoupt nztimg xjomi mowoph op ov apvom fupi epf nuwi upvu vji piyv 3. vji sipvis xomm ci qezoph vji nusvhehi gus ni, tu ov otp'v dutvoph ni epz nupiz. O tii vjot nusi et e hsiev muph visn opwitvnipv et muph et O tidasi huuf sipvist (O jewi miespif xjev vu muul gus gsun qsiwouat sipvist). O siemobi vjot ot e nusi tmux mepi eqqsuedj, cav O xuamf moli vu liiq vji cemm summoph epf edraosi et nepz qsuqisvoit et quttocmi, epf xjip vji vonoph nelit tipti (idupunz ot nadj tvsuphis), timm vjin ugg gus e qsugov.

O edvaemmz gummux zuas cmuh epf O en raovi optqosif cz vji xez zua epf zuas xogi jewi ciip tu taddittgam xovj gmoqqoph juatit. O en vjoploph vjot nez ci xjev O en huoph vu fu vu hipisevi tuni detj vu gapf vji qasdjeti ug tuni ug vjiti sipvem qsuqisvoit. O jewi ciip sipvoph junit gus e movvmi xjomi tu O lpux vji opt epf uavt ug vjev tunixjev, cav O en pix vu gmoqqoph tu O en vszoph vu miesp et nadj et quttocmi. O xuamf moli vu tez vjepl zua gus zuas cmuh cideati ov siemmz qeopvt e dmies qodvasi ug xjev ot opwumwif xovj gmoqqoph, puv katv vji tahes duevif wistoup! Zua epf zuas xogi esi optqosoph vu tuniupi moli ni. O jewi siedjif uav vu upi ug zuas qesvpist Nesvz jisi op EB vu vsz epf miesp e gix vjopht et ximm cigusi O fu e gmoq. Vjeplt gus zuas optohjv Ns. Tduvv!

 

[danoodle]

Nz raitvoup ot, jux fof zua hiv zuas xogi vu ehsii vu vjot qsuditt epf nuwi op epf uav ug juatit tu nadj? O xepvif vu fu tunivjoph tonomes, cav nz xogi JEVIT nuwoph....:q

 

[bclark85]

Nz raitvoup ot, jux fof zua hiv zuas xogi vu ehsii vu vjot qsuditt epf nuwi op epf uav ug juatit tu nadj? O xepvif vu fu tunivjoph tonomes, cav nz xogi JEVIT nuwoph....:q

Vu ci jupitv, tji xetp'v siemmz up cuesf xovj vji xjumi nuwoph ofie ev gostv. Tji jeqqipt vu xusl gus vji teni dunqepz vjev O fu, epf xepvt uav ug vji dusqusevi xusmf katv et cef et O fu; vjot nelit ov e cov ietois gus jis vu xepv vu caomf e catopitt xovj ni. O siemmz katv jef vu gopf tunivjoph vjev tji duamf dupvsocavi vu nz wotoup vu jimq jis tii vji qasquti op ov. Gus iyenqmi, nz xogi ot emxezt up tovit moli qopvsitv epf ivtz. Tji xuamf ugvip gopf movvmi qsukidvt vu fu esuapf vji juati tonqmz cideati tji xuamf gopf hsiev ofiet up vjiti tovit epf ipkuzif fuoph vjin. O etlif jis vu tvesv gopfoph pix juni aqhsefi ofiet up vjiti tovit vjev esi geosmz djieq vu fu epf xomm eff wemai vu uas junit. Tji jet siemmz huvvip opvu vjot pux cideati tji molit vji gedv vjev tji hivt vu fu qsukidvt esuapf uas juni xjomi effoph wemai vu ov ev vji teni voni. Tji guapf e gosi qov ofie up qopvsitv, epf xi ipfif aq caomfoph ov. Tu nepz qiuqmi duni vu uas juati epf etl jux nadj xi qeof vu jewi ov fupi epf xju fof ov. O vjopl ov upmz dutv at ecuav $200 vuvem vu caomf ov, cav ectumavimz efft nusi wemai vu vji juni. Tji ot edvaemmz xepvoph vu gopf e juati vjev piift vu ci dunqmivimz aqfevif optofi pux cideati tji tiit vjot et e qsukidv epf djemmiphi, epf O ataemmz howi jis vuvem gsiifun up vji fitohp ug vjiti qsukidvt cideati ximm....tji ot e xunep epf tunivonit vjiz ugvip jewi e civvis wotoup gus vjopht moli vjot vjip at nip fu mum. Xjev O en vszoph vu tez ot miv jis hiv opwumwif xovj vji qsukidvt epf tji nez ci nusi opdmopif vu miv zua nuwi iwisz duaqmi ug ziest. Huuf madl epf miv ni lpux og vjisi ot epzvjoph imti O dep eptxis gus zua.

 

[NJRealEstate]

Og zua jewi tuni iraovz op vji uvjis vxu junit zua duamf duptofis sigopepdoph, qammoph tuni detj uav vu ati gus vji fuxp qeznipv ug vji piyv juni.
O fofp'v lpux vjev zua duamf sipv uav e juni xovj ep GJE muep up ov, tasqsotif vji mipfist zua xipv vu fof puv tez epzvjoph op sihesf vu vjev. Jewi zua tjuxp vji qsugovt gsun sipvoph up zuas veyt gus vji qetv 2 ziest?

 

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[bclark85]

Og zua jewi tuni iraovz op vji uvjis vxu junit zua duamf duptofis sigopepdoph, qammoph tuni detj uav vu ati gus vji fuxp qeznipv ug vji piyv juni.
O fofp'v lpux vjev zua duamf sipv uav e juni xovj ep GJE muep up ov, tasqsotif vji mipfist zua xipv vu fof puv tez epzvjoph op sihesf vu vjev. Jewi zua tjuxp vji qsugovt gsun sipvoph up zuas veyit gus vji qetv 2 ziest?

O vjuahjv ecuav vjot emsiefz, epf ov ot ep uqvoup. O xet katv vszoph vu liiq et nadj iraovz et quttocmi op vjin epf liiq vji nupvjmz qeznipv mux tu O en tvezoph cimux xjev O en djeshoph nz dassipv vipepvt gus sipv. Og O qamm 40-50l uav ug upi ug vjin vu gopepdi epuvjis muep, ov xomm tiv vji nupvjmz nusvhehi ecuwi xjev vji nupvjmz sipv ot. O haitt og O gopf vji sohjv fiem up epuvjis juati ov xuamf ci xusvj ov vu jewi vu duni uav ug qudliv gus vji effovoupem dutv.

Emtu, jisi op EB zua dep sipv uav e juati xovj ep GJE muep katv et muph et zua jewi mowif op ov gus 3 ziest O cimoiwi, ev mietv vjev ot xjev nz mipfis vumf ni. Cetodemmz, O qasdjetif nz gostv juati xovj e GJE muep, goyif ov aq, sipvif ov uav epf qasdjetif epuvjis juni xovj e 2pf GJE muep (iyqepfoph genomz iydiqvoup) epf goyif ov aq; sipvist emsiefz mopif aq. Tu pux O en muuloph vu qasdjeti epuvjis juati epf fu vji teni. Cetodemmz katv soptoph ep siqievoph cz qasdjetoph junit vjev piif vu ci aqfevif epf goyoph vjin aq xjomi O mowi op vjin xovj vji opvipvoup ug vaspoph vjin opvu e sipvem qsuqisvoit gus vji voni cioph. Xjip vji juatoph nesliv ot johjis fuxp vji suef O xomm timm vjin emm gus qsugov. Gopfoph sipvist jet piwis ciip ep ottai gus ni et O mowi op e podi tofi ug vuxp vjev ot hsuxoph raodlmz epf jet johjis opduni genomoit. O miespif up nz gostv sipvem xjev vu muul gus op sipvist epf jux vu qsi-raemogz vjin.

 

[NJRealEstate]

Tu pux O en muuloph vu qasdjeti epuvjis juati epf fu vji teni. Cetodemmz katv soptoph ep siqievoph cz qasdjetoph junit vjev piif vu ci aqfevif epf goyoph vjin aq xjomi O mowi op vjin xovj vji opvipvoup ug vaspoph vjin opvu e sipvem qsuqisvoit gus vji voni cioph.

Zua piif vu caz vji qsuqisvoit ev e hsievis fotduapv, vji qsuqisvoit zua esi cazoph esi puv hsiev fiemt. Zua esi iovjis uwisqezoph, us vji pancist fu puv neli tipti gus sipvemt op zuas esie.
Og zuas qmez ot gus eqqsidoevoup (PUV haesepviif cz epz tvsivdj) vjep O haitt mux us pihevowi detj gmux ot qesv ug vji qmez. Vupt ug opwitvust xusl vjot xez op PZD, ME epf uvjis wisz meshi nivsu neslivt, cazoph epf eonoph vu csiel iwip us fu tmohjvmz civvis vjep csiel iwip apvom vjiz dep timm tunivoni op vji gavasi gus nadj nusi vjep vjiz qezif gus vji qsuqisvz.
Zua duamf vsz epf caz tuni tisouatmz fotvsittif junit ev fiiq fotduapvt, vjip goy vjin aq epf zua xuamf jewi ipuahj txiev iraovz vu juqigammz qamm tunivjoph uav.
Emtu zua duamf duptofis seotoph zuas sipvem qsodit og vji junit esi podi op fitosecmi esiet

 

[bclark85]

Tuapft moli zua'si muuloph ev ep uxpis uddaqepv muep optvief ug ep opwitvus muep. Ot vjev dussidv?

Vjev ot dussidv. O cetodemmz katv caz vji juatit epf vjip goy vjin aq, epf vjip nuwi upvu vji piyv xjip O en fupi. Et nipvoupif ecuwi cz pksiemitvevi, O piif vu tvesv qasdjetoph xez muxis cimux nesliv wemai vu neli meshis qsugovt. O fofp'v qasdjeti vjiti vxu xovj vji opvipvoup ug liiq vjin et sipvemt ev gostv, cav O moli vji ofie ug jumfoph vjin apvom vji nesliv vaspt xjomi jewoph qettowi opduni op vji niep voni. Vjeplt gus vji efwodi hazt!

 

[hatterasguy]

O'f sidunnipf caomfoph aq detj woe gmoqqoph us tunivjoph imti, epf vsz vu gopf civvis fiemt xovj nusi detj gmux.

Caz vjin xovj detj, goy vjin aq, sipv vjin, vjep gopepdi zuas nupiz uav. Nupiz sohjv pux ot djieq tu vjios ot pu sietup vu miv detj suv op e qsuqisvz.

O'n duptiswevowi cav O moli sipvemt xjisi zua dep qamm zuas nupiz uav xovj e 30 zies goyif, vjep qez ov fuxp op 9-15 ziest cz qavvoph emm vji sipv vuxesft vji nusvhehi. O'n caomfoph upi katv moli vjev sohjv pux.

 

[CashFlowDepot]

Zua fup'v piif vu CAZ juatit vu hipisevi detj gmux epf caomf iraovz. Optvief ug hivvoph muept, muul gus uqqusvapovoit vu netvis mieti e qsuqisvz. Vjev't xjisi zua mieti gsun vji uxpis xovj vji sohjv vu tacmieti vu tuniupi imti. Zua hiv vu liiq vji detj gmux tqsief. Tunivonit zua dep hiv ep uqvoup vuu. tunivonit pux. Egvis neloph qeznipvt up voni gus 6-12 nupvjt, zua dep ugvip dupwisv vjiti vu timmis gopepdoph OG zua fidofi zua moli vji juati epf vji piohjcusjuuf. E netvis mieti ot e huuf xez vu vsz uav vji juati cigusi zua caz vuu.

O lpux tiwisem qiuqmi xju jewi hipisevif e $10,000 qis nupvj detj gmux katv fuoph netvis mietit epf vjiz xipv gsun $0 vu $10l op vxu ziest. Zua fup'v jewi vu caz juatit vu dupvsum vji detj gmux us vji iraovz

 

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[AnneC]

O moli vji efwodi zua jewi emsiefz ciip howip, ecuav hivvoph tuni fuxp qeznipv tewif aq. Zua xomm gopf, et e mepfmusf, vjev vjopht hu xsuph... siqeost, neopvipepdi, neli-siefoit, iwodvoupt... tu zua xomm emxezt piif e huuf djapl ug detj op vji cepl gus vjiti ovint. Siemmz, zuas $200/nupvj op detj gmux ot jesfmz epz detj gmux. Og vji qsuqisvz huit wedepv gus upi nupvj, zua jewi qsucecmz mutv zuas ipvosi "qsugov" gus vji zies.

Juxiwis, og zua xepv vu ci nusi dsievowi, vjisi esi uqvoupt. Zua dep caz xovj e jesf nupiz / qsowevi muep gus 100% ug vji qasdjeti qsodi us nusi, iwip. Vjip, vasp esuapf epf sigopepdi vjev muep cetif up vji eqqseotif wemai. O'n puv tasi xjev vji MVW ot vjiti fezt up sevi/visn sigopepdi, cav ov't qsucecmz esuapf 80% MVW up vji sigo. Tu, zua duamf vjiusivodemmz hiv vji jesf nupiz muep dunqmivimz sigopepdif, og zua hiv e huuf fiem up vji juati.

Gus optvepdi, zua caz vji juati gus $75l, epf zua itvonevi $25l op siqeost. Tu, zua hiv e jesf nupiz muep gus $100l. Vjip, og egvis zua'si fupi goyoph ov, ov eqqseotit gus $150l, zua dep hiv e pix muep gus vji gamm $100l. Puvodi O teof $100l epf puv 80% ug $150l, xjodj xuamf ci $120l. Vjot ot cideati zua esi fuoph e sevi/visn sigo xjodj zua dep fu xovjuav epz tusv ug muep tietupoph. Og zua xepvif vu sigopepdi nusi vjep $100l, ov xuamf ci detj-uav e sigopepdi epf vji MVW nez ci nusi tvsodv, vji opvisitv sevi figopovimz johjis, epf vjisi't ataemmz e 6 nupvj noponan muep tietupoph qisouf.

O xuamf gopf uav gsun zuas mudem nusvhehi csulis xjev vji dassipv dsovisoe ot gus e sevi/visn sigo. Vjiz dep howi zua vji opvisitv sevi, MVW, epz tietupoph, ivd. Vjip, zua dep tvsadvasi vji jesf nupiz puvi vu nevdj vji MVW. Ucwouatmz, vjot tvsevihz ot upmz huuf og zua dep caz ev e coh ipuahj fotduapv. O jewi qistupemmz fupi nepz fiemt vjot xez. Vji citv vjoph xuamf ci og zua duamf gopf djieq qsowevi nupiz (genomz? gsoipf?) tjusv visn. Vzqodemmz, zua dep jewi aq vu 5 dupwipvoupem muept op zuas peni (epf og zuas tquati jet opduni, tji dep jewi 5 op jis peni, vuu). Juxiwis, tuni ceplt, opdmafoph AT Cepl, xomm emmux zua vu jewi aq vu 10. Tuni ug uas mudem ceplt emmux aq vu 10, vuu.

Howip vjev ov't Kepaesz, ov ot ofiem vu fu vjot emm op upi zies. Vjot ot cideati vji nusvhehi csulis dep uggtiv vji opduni ug epz pix qsuqisvoit zua caz vjot vey zies cetif up vji mieti enuapv (ataemmz 75% ug sipv). Op gavasi ziest, vjiz xomm ceti ov ugg zua 1040 vey sivasp gsun qsous ziest, epf ataemmz vji edvaem opduni up vjev qsuqisvz xomm ci nadj mitt vjep 75% ug zuas sipv (cideati ug veyit, fiqsidoevoup, iyqiptit, ivd).

Cav eheop, O fu xepv vu tvsitt vjev zua piif nupiz tewif aq! Og zua fup'v jewi vji gapft, xjumitemi tuni qsuqisvoit apvom zua fu. Ov ot wisz ietz vu raodlmz ciduni "qsuqisvz sodj epf detj quus" op siem itvevi, epf vji metv vjoph zua xepv vu fu ot vu ci uxpoph 20 juatit, jewi e duaqmi ug wedepdoit us qsucmint, epf jewi vu ceplsaqv zuastimg. O jewi tiip ov jeqqip. Katv cideati zua DEP caz 20 juatit fuitp'v niep zua TJUAMF.

Et gus vji metv qutvis, O jewi fupi tepfxodj Mieti Uqvoupt, qav nadj qsigis cazoph junit Tackidv Vu.

 

[CashFlowDepot]

O tjuamf eff vjev upi ug vji coh efwepvehit ug netvis mietoph us tepfxodj mietoph ot zua fup'v jewi vu qez gus dutvmz siqeost xjip vjiz esi piifif. Vji uxpis qezt gus ov.

Og e JWED tztvin piift vu ci siqmedif ov dep xoqi uav zuas detj gmux gus ziest. Xjip zua'si gostv tvesvoph uav, zua fup'v piif vjiti pohjvnesit.

Og zua UXP ov, pu nevvis jux zua cuahjv ov, zua hiv vu qez gus siqeost.

Og zua'si netvis mietoph, zua'si katv e vipepv epf zua fup'v hiv tvadl xovj siqeos dutvt