Bought my first house, I am in Vero Beach, FL and house hacking it!

[Luke Panas]

Hey all, really look forward to learning from you guys! My name is Luke. I am a business owner of 2 stores, 1 in Vero, and the other in Port St Lucie. i got a killer deal on a house in Vero Beach, Florida. The only problem was that I couldn't buy it in my own name (a complicated story, but there was no way for the underwriter to write for the property to be put in my name as the buyer) so i created an LLC with my father and I as managing members and got the funding for it through a hard money lender. I got a great price at 210K and it appraised at 260K at time of purchase - this was in April of 2023. Since then I have made significant improvements and am making the previous garage conversion into an actual ADU. I am planning to get a cashout refi, which I believe I need to move it solely into my name first, but there is also a prepayment penalty attached to the loan for the first 3 years. My interest rate is 10% though, and i think i am paying way too much on such a small mortgage.

I am looking for some guidance on what the best next step would be once the rental side gets done on how to move forward to structure a second deal. Sorry for the complicated scenario as my first post! -(And thats the cliff notes version!)

[Gregory Schwartz]

Its all a numbers game. Is the pre-payment penalty worth the lower rate you'd get. On a refinance you might not be that much better than the 10%. So maybe wait till rates come down some more next year. 

Either way congrats on taking the leap and house hacking! Sounds like you have a great first deal