All Forum Posts by: Andy Finneran

Can you do a Home Equity Line of Credit on any of your properties? Interest rates aren't great now but you can use your own equity to fund the repairs and pay off with the higher rents. As the property increases in value get it reappraised for a possible refinancing option.

If you just need $10 - $15,000 for 18 months you can get a credit card with interest free for 18 months. You just have to charge everything in the first three months then pay the minimum till 17 months. Pay the whole thing off with a refi or other money and you got a free loan. 

@Marty Johnston Thanks for the detailed info. Interesting about living/ working in the property. The banker who told me about it was also a residential multi family guy.

I have contacted another commercial broker so hopefully I can make some progress.

Still looking for a lawyer but that will probably be easier.

@Marty Johnston I talked to a few banks that provided some good info on the finance options but then got stuck at finding the right person to talk to. You're right about the residential vs retail footprint being a good thing but because it's 15% retail the multi family LOs call it commercial. Long term tenants with leases and a solid rental history make it a low risk finance. It could be a side effect of covid because one bank said only 1 in 10 commercial loans were being approved. I was planning on living there but not right away. I was told running my business out of there would also help with the loan. 

Bottom line I just need to find a banker to see what kind of loan I can get. There were a few NewYork brokers I found on bigger pockets but they wanted an application filled out before they would talk to you. Any ideas let me know.

Thanks,

Andy

I'm looking to buy a 6 unit building and running into difficulties finding financing. Building has a 1st floor retail space and the other 5 units are apartments so it falls under a commercial loan. Having a hard time getting a loan officer to even call me back. I currently own a 3 unit multi family and single family as rentals in NJ so maybe I'm not asking the right questions. 

I have all the numbers (leases, taxes, maintenance, electric, gas, garbage, etc.) ran them through the Bigger Pockets and two other calculators to get a good estimate on the price. Just need to get in front of a loan officer to present this.

Also need a real estate lawyer to close that can do a trust later.

Thanks,

Andy

I'm in NJ rehabbing a 1902 multifamily as a 1st time house hacker. Here you usually get a home inspection and in my case I was buying the house as is but I got one anyway. An investor friend gave me an inspector who finds everything and goes over the place with a fine toothed comb. A few reasons why I paid the $600: 

- 1st time investor and I wanted to be sure the place wasn't going to be a complete money pit.

- Good to know what needs to be done ASAP and what can wait a few years or ignore.

- As Mark said asbestos, lead paint and electrical (plus septic if any). In some states you can't sell a house unless they are remediated. Best to let an expert tell you if there are any issues then you can share with the seller and negotiate. You might just get all your money back here.

- Follow the inspector around and ask questions. It's a learning experience on what to look for and where to look. 

- Get to see all the rooms and what the tenants are doing in them. I told my tenants to stop doing two questionable electric things like plugging a power strip into another power strip. Also fixed a door that was falling off (10 minutes plus a few screws) and avoided a new door later.

- You will get a complete inspection report with pictures to keep on file. Great for future use to compare what it looked like when you bought it.

Good luck!

Andy FInneran

I may have to update my old fire escape so I'd be interested as to what you find out.

My plan was to take off the metal fire escape and add a 2nd floor deck to double as a fire escape but I was told this deck may also have to be steel. 

Same situation, 120 year old house and no plans..

Andy

Try looking for an independent insurance agent that handles a bunch if insurance underwriters. They will shop your quote for the best price. When I bought a three family State Farm said they could only do duplexes. 

Andy

You could just ask for rates and ballpark fees for both. No need to apply unless you like the numbers. I'm doing a refi right now and I just called my current mortgage company and a few banks to get rates and fee prices. 

We ran the numbers ourselves before we applied for the refi loan. 

Keep in mind what Kevin said when making your plans. If you are going to move then keep in mind a non-owner occupied loan was about .5% higher on the east coast. So it might not be worth it to refi your current house if you plan on moving. 

The safest thing would be to keep your current house and just invest in a new property. Just make sure the numbers make sense as a stand alone deal. Who knows what will happen in the next year? If things look good in a year then swap houses.

Andy
 

I would agree that you should not sell it. I'm in a similar situation but fortunately my contractor disappeared near the end of the job so I'm not out anything. He did leave equipment that he is not getting back until we deal with his contract as he may ask me for money. 

This is new for me as well so i'd like to see what the experienced members say. 

My town requires me to submit a change of contractor form in order to close out the permits. They said it happens all the time and I found another contractor who is willing to take the job. I'm completing the finishing work to save my self some money. I emailed my old contractor giving him one month to show up and complete the job or we will cancel the contract. I also changed the locks immediately so he can't get in without me being there. Security cameras are in place as well.

I'd rather negotiate with him than do small claims but I will make sure there is a trail of emails either way. Follow up any verbal conversations with an email "as we discussed and agreed upon".

Hopefully you can get your money back!

Andy
 

Hi Kerie,

Welcome to Bigger Pockets! Hope you find a flip and get your first deal.

I'm currently looking for my first multi family in Worcester and also in search some local property management.