All Forum Posts by: Alexander Flores

@Ben Williams I believe they cannot foreclose if they file bankruptcy since you own the property. If the deed is in your name and you pay the mortgage on the property then you're fine. 

I think the key here is making sure that the deed is in your name. If you take over their payments by paying them but never actually receive ownership of the property then you would be in trouble if they foreclose I think.

Anyone correct me if I a wrong.

@John Hilton 

@Jason Coyle Gave a great response, you need someone whose goals align with your own. One of the BP podcasts was interviewing flippers in I think Texas and they said how they have trouble finding contractors sometimes since they do not pay top dollar since they are flippers. They wouldn't be able to sustain their business.

Be upfront and do your due diligence.

@Jason D. Says it perfectly with over-leveraging can get you into trouble during tough times. The cash-out refinance we did on our one rental was only up to 70%, we got most of our money out of the property and within 6 months had the rest.

I like the HELOC since you do not need to use the money, it is only an option. Just make sure that when the HELOC ends that it does not turn into some type of mortgage product.

@Daniel Pitner Depends on the lender, I have heard people getting up to 100% on a HELOC if it is their personal residence. For an investment property, we have been able to get up to 80% on a HELOC.

IMO, I would rent the property out since only having 18k in equity if you sell it at 188k, you most likely would lose money when you factor in your closing costs from purchasing the property, your holding costs when you lived in the property and then the fees associated with selling the property.

If you can manage the property and make a return on renting the home I would do that. I would buy a new home and put 20% down or as close as possible. Then get a HELOC on my new primary residence to use in case I wanted to invest in a new property.

Shop around for everything, insurance rates, mortgage rates, HELOCs, renters. 

Anything else let me know. I have a higher risk tolerance since I am young at 26, don't have kids, have not too many bills, make a decent income, live pretty frugally and my sister who is younger than me, smarter than me, makes more money than me and is better with her finances is a 50/50 partner. This may make my course of action different from yours.

@Daniel Pitner I am not a mortgage broker or anything but have used an FHA 203k to buy a home, helped my friends use an FHA loan and helped friends who did 5% conventional down on a home.

At the end of the day, it is a numbers game in my opinion. Using an FHA loan you will be paying upfront PMI at closing, which can add a significant amount to your closing costs depending on the purchase price of the home.

Also depends where you are at in your investing life. Are you planning on scaling fast or buying properties at a slower pace? You could put as much down as possible to save on the FHA extra closing costs, then take out a HELOC on the property to get your cash out if you need it for another property.

I have done cash-out refinances on an investment property but the closing costs were insane compared to the HELOC I a currently doing on another.

You will have to find the strategy that works for you, good luck!

If anything I said is wrong, please correct me.

@Ryan Blake @Paul Lambert

Ryan's answer pretty answers your question perfectly.

Theoretically, you could do exactly what you are asking but you have to make sure the numbers work. You would have to wait a minimum of six months to do a cash-out refinance to BRRRR out of the first mortgage. You would incur holding costs and other costs that would not be in your rehab.

Paying for two sets of closing costs on traditional mortgages would eat heavily into your numbers. We only got 70% ARV on our first BRRRR.

Nothing is impossible but could be very improbable. If the numbers work then they work but know that estimates are just those. 

Any other questions let me know!

I have BRRRRed both our rentals and also refinanced out a live and flip prior to selling.

@Akeem Moreno

I am in located in Ocean County NJ so if you're looking in this area let me know. I am a realtor in NJ as well.

Welcome to BP Dana, I am down in Ocean County. 

• Reads book, BP and other sites about REI.
• Listen to podcasts.
• Attend REI meetings in your area, BP has a section that shows events close to you.
• Ask on the forums for clarification on anything you are trying to figure out.

Best of luck!

Originally posted by @Akeem Moreno:

Looking to make a purchase on a property New York, New Jersey. Any help will be appreciated as this is my first time getting into real estate. Thanks All!

 Need a lot more information.

• Primary Home or Investment
• Purchase Price Area
• Where do you live in NY or NJ?
• What are your cash reserves and income?
• Do you have a ton of debt? 

@Joel N. Got my license a couple of months ago. There are talks of getting rid of the referral agent soon, just an fyi.

@Jorge Roman Thanks for the insights Jorge! I'll definitely check out the sites you referred. I have experience with running the business side of things having been managing my properties for a few years. I love the book Traction, systems are key! Alex