All Forum Posts by: Adam Drummond

Are you cashing out an investment property, or your primary residence?  I called around to 10+ lenders in S. Carolina before i found 2 that offered me better terms.  I do not like arm loans..  i had a couple of them years ago, and when the market goes south, it is much harder to refinance those loans.  On my rental property i am getting an in house loan with a local credit union with a 30 yr term, and no balloon, or adjustable rate.  I had to shop around for a while before I talked to the right lender though.  Best of luck.

Adam 

@Todd Dexheimer

great advice!

@Jason Dillard

"if you're tired of tenants, toilets, and ... "  (cue banjo music)

I will have about 50k tied up in the property including purchase price, but i can refi quite a bit more than that.  I have to disagree with all you guys who say to pull out the full 75-80 ltv.   Someone earlier made a good point.  Refi the amount that makes sense based on what rent you can collect.  This house will rent for $900 per month.

thanks though for the reply.  it seems like if you talk to 10 investors, half of them will swear by one method, and the other half swear by a different approach.  

adam

that's sounds crazy!  what are they saying has asbestos?  i am no expert at all on asbestos, but i have changed a lot of windows over the years.  you're just pulling off window trim, and i assume pulling out the old sashes.  doesn't seem like you're exposing anything but framing, and window jambs?  maybe old insulation? 

@Alexander Felice

i understand what you're saying, especially in a market that has been trending up for quite a while.  what about when the market slows down or stops?  i'd rather have equity in my properties, instead of having everything leveraged to the max.  seems like you're possibly setting yourself up for disaster if you max out your properties.  my 2 cents.

adam

@Tyler Weaver   

thanks.  the house is in a quickly gentrifying neighborhood close to downtown greenville, but it's not there quite yet.  the house when finished should bring close to $200 per foot in today's market.  to me there is no way that it should be worth that, but that's another discussion.  obv the market will soften /slow down at some point, and i'd rather owe 75k on it than 100k.  

thanks, 

adam

i agree with you 100%.  I sold real estate full time starting back in 2004-2005, and i remember the market just coming to a complete stop.  i want to be able to sleep at night knowing that i can handle /manage what i currently have.  i think there is prob a good middle ground somewhere in between both sides.  

@Gareth Jackson

@Stan Sugarman

@Michael Noto

@Brian Garrett

thanks for the input.  some people say dead equity is a bad thing to leave sitting around...  others say leverage as little as possible, and cash flow as much as possible.   i am more conservative, and do not want to owe a huge amount if not necessary.  always looking for different advice from others who have a lot more experience than i do though.

thanks,

adam

i am almost finished w/ my first brrr property.  i bought the property and rehabbed the property w/ my own money.  i will refinance it and pull all my money back out, and do it all over again.  the house will cash flow almost 400/month, and once i refi... i will have zero money out of pocket, and will still have a lot of equity in the house.  what's not to like about that method?

adam