All Forum Posts by: Andrew Lackey

@Chance Brookins hey! It is rented now at 975 until July 2020. I’m still trying to figure out if I should refi ASAP or wait until new lease with higher rents in place.

@Todd Rasmussen I'm thinking I might go ahead and check rates and see what it would be to go ahead and refi

 Thanks 

You should make minimum $200 per SFR door in Atlanta market after all expenses

It's a beautiful fall morning! The birds are singing, the sun is shining, the BRRRR of winter is not fully here yet ;) Or maybe it is?!?!

haaaaa....ok enough funny business down to business of this post. 

Ok, I have a property I just purchased a few months ago that I want some feedback on whether or not to refinance now or later.

Situation:

Property purchased 130k cash

$10,227 in repairs

"All in" cost so far $143,451 total including everything

Rents for $975 through 6/30/2020 

Cashflowing right now $730 if i include monthly property mgmt, insurance, and taxes

ARV after repair approx $180k

Rent will be raised to $1200-1300/month 7/1/2020

Once refinanced, will cashflow $220-250 depending on rates.

Cash on cash return between 27-63% depending on how things shake out on ARV(probably sounds crazy but this accounts for all in cost 143,451+closing cost to refi estimating 8,000-rental cashflow now until June 2020 5,840-refi cash out payment 138,000)

Questions I want to get some opinions on:

1. Should I let is cashflow at $730, with no mortgage until 6/30/2020 and just wait to refinance once rent is raised to appropriate market rates, or should I refinance now, and make literally no cashflow until 7/1?

2. If i refinance now, I would have my cash back and more, but is it really worth it?

3. I'd like to have the cash back to be able to redeploy the $, but is that smart?

4. Would you try to break the lease and give cash for keys?

5. How much cash would you offer?

6. Would it be smart or ethical to ask them to vacate for a payment this time of year?(my management company says keep tenant in place until lease is up)

7. Should I get appraisal done before lease is up so i can refi very quickly once new lease is in place?

8. Any other suggestions to make this deal better?

Curious to see what reactions and opinions i get!

Thanks BP. I hope to hear from you soon!

@George Yu

What amount of cash do you need to build a 36 unit apartment? Just curious what the entrance fee is

@Monika Haebich I am not sure what you mean by "guaranteed wholesale net income." I would be working with a PM that does not give me leads, and then have a prospective PM that i cold called, sending me leads for potential deals. Can you please elaborate on what you mean?

THANKS!

@Dawn Brenengen i like your response. "don't bite the hand that feeds you." thank you 

@John Van Uytven, @Char Prado,  and @Account Closed for your opinions as well. It is really helpful getting some options from everyone. If this deal goes through i will spread out the property management to different providers

i like having two managers for different classes of propterties 

thank you Peter

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