Rental Property Investor · Plymouth Meeting, PA · Member since 2014 · 49 posts · 9 votes
Hey,
I have a few questions. regarding
Can you buy a property through an llc with a line of credit private money loan
Can you refinance the investment property to a conventional/long term loan that was bought in cash to cash out and pay off a private money loan
If yes then how long will it have to season the property and show income.
The scenario:
I have a new LLC for Sober living houses. I am going to be having a private money line of credit structured loan. I will buy a house for my type of business at or below the 200k range below market value. For the style of business the start up expense per house is about 18-20k. The recurring expenses monthly are about 3k. The income per month is about 6-11k. The profit after all monthly expenses
Example:
250k line of credit at 10.5% intrest only loan for a 12-18month term.
Total due at terms: $276,250
Total monthly (intrest only): $1,459- $2,188
Purchase price: $200,000
Start up expenses: $18,000-$20,000
Recurring expenses: $3,000
Total monthly income: $6,000-$11,000
Total monthly profit after monthly expenses: $1,513-$5,812
If there's any other information needed to answer the questions please let me know.