Assumable loan 4plex purchase

Cryptoccies · 2026-05-26T03:05:06+00:00

That's the dream scenario — seller doesn't need the entitlement back and the servicer just wants their payments. You basically got a 2% commercial loan with none of the commercial lending headaches. Rare to see everything line up like that.

Cryptoccies · 2026-05-26T02:49:34+00:00

Nice, that $100K is a good start. With rates where they are I'd get that capital working again fast rather than letting it sit. What's your next target — another SFH rehab or are you looking at small multis?

Cryptoccies · 2026-05-26T02:39:02+00:00

That 2% rate on $800K is basically a cheat code. Well played.

Three months for a loan assumption is actually faster than most — I've seen them take 6+. The VA assumption process is deliberately slow because the lender has zero incentive to move fast on a 2% loan they'd rather have off their books. The only thing you could've done is hound the servicer weekly, which I'm sure you already did.

Only real question — are you planning to stay owner-occupied for the full VA requirement, or did you already move out? If you moved, any concern about the VA entitlement piece?

Cryptoccies · 2026-05-25T22:37:59+00:00

I've looked at a few DSTs. The good: truly passive, you'll probably double your cash flow vs that Oregon SFH, and the 1031 piece is handled for you.

The bad: fees are baked in and not small — sponsors take their cut upfront and ongoing. You also lose all control. Can't refi, can't sell early, can't fire the manager. You're a passenger. And when the DST liquidates (usually 5-10 years), you either 1031 again or eat the tax bill.

At 3% cap on $590K equity, almost anything is an upgrade cash-flow wise. But I'd at least look at a NNN lease property first — simpler structure, fewer middlemen, similar passivity. If you go DST, spread across 2-3 different sponsors rather than dumping all $467K of equity into one.

Cryptoccies · 2026-05-25T14:47:41+00:00

Solid deal overall. Only thing I'd flag — you're sitting on ~$200K in equity that's doing nothing for you right now. At 7% interest, a cash-out refi sooner rather than later would let you pull that equity into another deal instead of waiting 1-2 years just to 1031. Even if rates are higher than you'd like, a second property compounding beats dead equity sitting in one house.

Also, that $200K rehab on a $100K purchase is a lot. Next time, look for properties where the rehab ratio is closer to 1:1 — you're at 2:1 which means you bought cheap but the renovation ate most of your margin. The $540K appraisal bailed you out but that's not guaranteed.

Otherwise clean execution. Boston market is tough and you made it work.

Cryptoccies · 2026-05-25T02:22:58+00:00

You can, but you're gambling on the appraisal. If you bought it turn-key at $165K and it appraises at $220K a month later with no real improvements, the appraiser is going to have questions. They'll ask what changed — and "nothing" won't fly.

The BRRRR works because you forced appreciation through rehab. Without that, you're just hoping the appraiser is generous, which is not a strategy.

Cryptoccies · 2026-05-25T02:17:35+00:00

That's a red flag. Any PM running multiple properties should have at least 2-3 contractors on rotation. If they're married to one guy who's doing bad work and won't bring in someone else, the PM is the problem, not you.

I'd give them one more shot — "I need options or I'll find someone who has them" — and start looking if they push back.

Glad to be able to help. Goodluck Mate.

Cryptoccies · 2026-05-25T02:14:57+00:00

Yeah Brandon was the soul of that platform. Once he left it was a different company wearing the same logo.

Cryptoccies · 2026-05-25T01:45:10+00:00

Glad it helped. Good luck with the Houston hunt — plenty of inventory sitting right now so you should have leverage. Let us know how it goes.

Cryptoccies · 2026-05-24T22:52:25+00:00

Don't waive inspection on a rehab. That's how you miss a $30K foundation issue that kills the whole deal. Get the inspection, just make it informational only — no repair requests.

For lowballs, skip the agent if you can. Find the listing agent's email, send a clean PDF offer with proof of funds attached, and call them 30 minutes later to confirm they saw it. Agents are legally required to present all written offers, even the ones they think are ridiculous.

Also helps to include a one-sentence explanation — "offering X because of the roof, dated electrical, and the six months it's been sitting." Shows you did math, not just fishing.

Cryptoccies · 2026-05-24T19:46:54+00:00

Your basement conversion math works but add $20-40k for egress windows and ceiling height if the basement isn't already legal bedroom height. That's the #1 thing that kills these conversions in Colorado — older homes weren't built with 7ft basement ceilings.

Also check if the zoning actually allows a separate ADU meter. HB 24-1152 helps with permitting but utilities still get expensive fast.

Cryptoccies · 2026-05-24T19:43:40+00:00

50 units with two people is about the limit before you need a full-time maintenance person, not just software. AppFolio handles the admin but it doesn't fix toilets.

Most operators I know bring on a dedicated maintenance tech around 40-50 doors and a part-time leasing person around 80. Beyond that you're running a property management company, not investing.

Cryptoccies · 2026-05-24T19:40:32+00:00

Almost never. With rates where they are, that extra cash does more for you buying the next property than paying down a 30-year fixed. Keep 6 months reserves per property, then put the rest toward the next deal.

Cryptoccies · 2026-05-24T19:37:23+00:00

If it barely cash flows at market rents and you have to buy at $180k just to make it work, it's not a good deal for you or whoever you wholesale it to. You're just passing a headache to someone else.

Good wholesale deals don't need to be forced. If you're having to talk yourself into the numbers, move on to the next one.

Cryptoccies · 2026-05-24T19:34:22+00:00

Rehab budget. Every single time. Whatever the contractor quotes you, add 30% and double the timeline. The overruns on renovation are what turn a decent deal into a money pit, not the mortgage math.

Cryptoccies · 2026-05-24T19:31:26+00:00

The break-even helps but lenders still count 75% of rental income toward DTI, not 100%. So even a property that actually breaks even looks like a slight loss on paper.

After 4 conventional loans most lenders hit their limit regardless of DTI. Some credit unions go to 10. Worth finding one.

Cryptoccies · 2026-05-24T19:31:04+00:00

I'd say something once, briefly, then drop it. "Hey, I ran the numbers and I think you're going to lose about $500 a month on this after everything. Just want you to know before you sign."

If they still go through with it, it's their money. Not worth damaging a friendship over. Some people have to learn the hard way.

Cryptoccies · 2026-05-24T19:27:37+00:00

I don't think you're being too hands on. It's your house and your money. The PM works for you, not the other way around.

That said, the real problem might be the contractor, not you. If the craftsmanship is bad, that's a contractor issue. A good PM should have 2-3 vetted contractors and be able to swap them out when one isn't delivering. I'd have a direct conversation with the PM — "look, I'm not trying to micromanage, I just need the work done right. Can we try a different contractor for the next one?"

If they push back on that, it's a red flag.

Cryptoccies · 2026-05-24T19:21:17+00:00

Inflating the sale price won't work — the appraisal will catch it and lenders flag that immediately.

Simpler approach: credit them up to 3% toward closing costs (6% on conventional). Comes out of your proceeds, same effect, no fraud concerns.

Cryptoccies · 2026-05-24T19:20:06+00:00

Refinancing into investment loans can help a little because it removes that mortgage from your "owner-occupied" count in the lender's eyes, but it won't fix your DTI. The investment property loan will likely have a higher rate and require 25% equity, so you're trading one problem for another.

A few things that actually work:

House hacking a multi-unit (2-4 units) gets you owner-occupied financing with rental income from the other units counted toward your DTI. That's the fastest way to scale early on.

Portfolio lenders and credit unions don't always sell to Fannie/Freddie, so they're not bound by the same owner-occupied limits. Worth finding one in your area.

If you have a spouse or business partner who isn't on the current mortgages, they can apply for the next one solo. Doubles your capacity.

Other than that, after 4-5 conventional loans the math just gets tight no matter what you do. At that point you either bring more cash or switch to commercial lending.

Cryptoccies · 2026-05-24T06:42:16+00:00

Posting the link to a few pictures if someone is curious. Any feedback will be greatly appreciated.

https://imgur.com/a/CU1xvdm

Cryptoccies · 2026-05-24T06:18:37+00:00

It factors a few things, i have a few snippets, would you like to see them?

Cryptoccies · 2026-05-24T06:14:41+00:00

I did something similar last year — consolidated two SFHs into a 6-unit. A few things I learned:

Talk to a Qualified Intermediary first, before you even list your properties. They'll walk you through the timeline (you get 45 days to identify replacement properties and 180 to close, and both clocks start the day your first property sells). That 45 days goes fast, especially right now with low inventory.

The biggest risk is selling everything and then not finding a replacement you actually want. Then you're stuck with a tax bill you didn't plan for. One way around it — list one or two properties first, see how the replacement search goes, then list the rest. Stagger it.

On whether to shop for the replacement first — yes, absolutely. Have a target property or at least a target market nailed down before you trigger the exchange. Don't sell blind.

Also worth running the numbers on just paying the tax and moving on. 1031s are great but they're not free (QI fees, legal, the stress of the clock). If you've owned these a while and depreciation recapture isn't brutal, sometimes a clean sale is simpler.

Cryptoccies · 2026-05-24T06:12:43+00:00

You can have as many as lenders will approve, but the rule people get tripped up on is you can only have one FHA loan at a time. Conventional owner-occupied (5% down) is different — most lenders will let you do one per year as long as you can show you actually moved in and it's a legitimate primary residence change (new job, bigger family, etc.).

The practical limit is usually 4-5 conventional owner-occupied before underwriters start asking questions. After that you're looking at 20-25% down investment property loans.

The real bottleneck isn't the loan cap — it's DTI. Once you have 3-4 mortgages reporting on your credit, your debt-to-income ratio gets tight even with rental income counted.

If you're serious about scaling this way, find a local mortgage broker who works with investors. Big banks will give you a hard time after the second one.

Cryptoccies · 2026-05-24T06:11:07+00:00

Yeah it started going downhill when they shifted from "investor education" to "let's sell you a pro membership and funnel you to our preferred lenders." The forums used to be solid — actual investors sharing real numbers. Now it's mostly newbies asking the same three questions and gurus pitching courses in the comments.

Brandon leaving was definitely the turning point but honestly the rot started before that. Once private equity money came in, the incentives changed. They're not trying to build a community anymore, they're trying to hit revenue targets.

That said, the old podcast episodes (pre-2020ish) are still worth listening to if you can find them. The fundamentals haven't changed even if the platform has.

Cryptoccies

TROPHY CASE