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All Forum Posts by: Andrew Garcia

Andrew Garcia has started 0 posts and replied 706 times.

Post: Found a good deal, now what?

Andrew GarciaPosted
  • Lender
  • Charlotte, NC
  • Posts 739
  • Votes 410

Hi @Jose Aguilar, first, you need to figure out if you can obtain financing and how much you need to raise in equity. 

There is no faster way to burn bridges and ruin your reputation in your market than to tell someone you can do something then fail to deliver based on something so basic.

Once you have financing secured, go find equity partners that you can pitch the deal to.

Hope this helps! Let me know if I can be of any assistance.

Post: Inherited Real Estate

Andrew GarciaPosted
  • Lender
  • Charlotte, NC
  • Posts 739
  • Votes 410

Hi @Jaylan Route, your father could do a cash-out refinance and pay off the other two brothers. Then, do a seller financing or a sub-to deal to you so you have managing rights to the property. Eventually, you can buy him out as well.

That is the way that I would approach this situation. Let me know if I can be of any assistance.

Post: In south Charlotte and ready to learn!

Andrew GarciaPosted
  • Lender
  • Charlotte, NC
  • Posts 739
  • Votes 410

Hi @Brittany Scantland-Lall, welcome to the BP community! I actually just moved from Charlotte. I do miss the Queen City!

Just know that Charlotte is not the most inducive environment for house-hacking. There is not an abundance of multi-family properties in and around the city.

Hopefully, your realtor can help you find one but they are pretty competitive.

Good luck! Let me know if I can be of any assistance.

Post: Considerations for turning expensive home into rental

Andrew GarciaPosted
  • Lender
  • Charlotte, NC
  • Posts 739
  • Votes 410

Hi @Stephen Williams, if you have enough VA entitlement left to buy a house in Florida, there is really no reason to sell your property. Unless you want to invest that money somewhere else.

If you did, you would have to look at what your return on equity is. 

After all the fees associated with selling your home, you will likely walk away with $225,000. You will have to put 20% down for each investment property. After closing costs, let's say you can buy $1,000,000 worth of real estate to keep the numbers simple.

A few considerations:

1. Will those properties bring in $1,000 per month before factoring in maintenance, cap ex, vacancy, and management expenses?

2. The interest rate will be higher so cash flow will be tougher.

3. Will you see more appreciation in Seattle with an $800k property or in Florida with $1,000,000 worth of property.

4. How much is your time, energy, and effort worth to find, acquire, manage, and eventually dispose of 4 properties compared to one.

You can also look into a HELOC so you can access some of your current equity to buy a property in Florida. Then, see which one performs better and invest accordingly.

Hope this helps! Let me know if I can be of any assistance.

Post: Beginning my Real Estate journey!

Andrew GarciaPosted
  • Lender
  • Charlotte, NC
  • Posts 739
  • Votes 410

Hi @Adam Manookian, I just moved out of Charlotte for work. I wish I could go back, the Queen City is amazing!

Anyways, welcome to the community! I would love to connect with you and help you in any way that I can.

Sending you a colleague request.

Post: Interest rate cash out refi

Andrew GarciaPosted
  • Lender
  • Charlotte, NC
  • Posts 739
  • Votes 410

@Danielle Du Plooy, it depends on a few different factors. If you are looking for conventional financing on an investment property, this is a point higher than the market. If it is a primary residence, it is over 1.5% higher.

If you are looking for a DSCR loan, that pricing is in line.

Pricing is also determined by more than just your credit score so I am basing this off a cookie-cutter scenario.

Hope this helps! Let me know if I can be of any assistance.

Quote from @Eugene DuShawn Smith:

Thank you everyone. your replies have been very helpful I now know to use a private lender. Its unfortunate but YES 5 years is seasonal with Navy Federal and they will not LTV for anything less

 @Eugene DuShawn Smith, you do not have to use a private lender. You just will not be able to use conventional or FHA financing. You can still go through a licensed mortgage broker or another reputable lender that has access to investor-friendly products.

Post: North Carolina LTR Market

Andrew GarciaPosted
  • Lender
  • Charlotte, NC
  • Posts 739
  • Votes 410

@Tim Wolak, of course! Happy to help.

Let me know if there is anything I can do for you.

@Emily Wilson, the payment will be based on the reporting payment. If you have not used any of it, then there will not be a payment reporting and thus will not impact your DTI.

Post: North Carolina LTR Market

Andrew GarciaPosted
  • Lender
  • Charlotte, NC
  • Posts 739
  • Votes 410

Hi @Tim Wolak, the 1% rule is for cashflow-centric investors targeting lower price points. For example, if you buy a $100,000 house in Cleveland, you could easily hit the 1% rule but that is not necessarily the best option.

The thing with Charlotte is that it used to be great for cash flow 2-3 years ago but it has seen explosive growth since then. 

If you buy in the right areas, you could see massive appreciation. I know a woman that bought her home in June of 2020 in Concord and today that property is worth $450k. It has not even been two years and she has $160k in equity.

The question is then: would you lose $200 per month in cash flow to make $80k per year in appreciation?

That is why so many investors continue to pour their money into Charlotte.

If you are looking for cashflow positive areas, you will be looking at lower price point homes and probably 2 beds.

A local real estate agent should be able to help you more with that.

Hope this helps! Let me know if I can be of any assistance.