All Forum Posts by: Anthony J Ruma

Hell BP!

I'm looking for some help regarding LLCs and having rental properties in multiple states. If someone could provide me with a little information on how to obtain, or any legal help would be much appreciated. I have properties in CA and in TN, now totaling 9 doors, and I was told I should get an LLC asap.

I’m a little lost on this subject , and would love to get some help/advice

Anthony

@Nathan Gesner

This particular area I’m assuming has had zero interest due to the lack of population. I believe this tiny country ‘town’ has fewer than 10,000 people , per last I checked. Also the same reason why it’s been vacant. No particular industry, small country town, etc. the other units have been rented for years, and I will find out more on their lease agreements as the week progresses. I however, believe I have stumbled upon an area where there is going to be a proposed growth due to expected expansion for a small racetrack being built near bye. I want to jump on the opportunity before it is too late. If it doesn’t work out, it’s just money at the end of the day. I can always get money back. I know that’s not the typical response for an investor, but I do things a little out of the box, and it has provided me well so far.

Anthony

@JD Martin

JD thank you so much for your response. The duplex is located near Bristol. I met the individual by complete chance. He said he had the 3 duplex for sale for nearly 4 months on the market, and had just given up. Zero interest he said. 5 of the units are rented out, with one being vacant for over a year. Ideally, if I knew how to gain capital like most of everyone here on BP it seems, I would buy all 3 at the same time. Since I have zero understanding still, no matter how much I read into this platform, on how to obtain capital, I believe I can only purchase one at a time .

Anthony

Hello BP members! Looking for some help!

I have an opportunity to buy a duplex for a great price, under market value in East Tennessee. One side is vacant, and the other side is leased until December. Ideally, I’d like to buy it, and fix/update both sides at the same time for ease on my end.

My question is what are the renters rights having an active lease through the end of the year? Am I able to cancel the lease as a new homeowner? Would I have to pay them 1 months rent to leave? If so, how many days do they get to pack and leave? Is it not an option what-so-ever?

This would be my first multi family investment opportunity, and If it goes the way I’d like, I can purchase 2 more duplex’s from the same owner.

Id love any and all input and help regarding this manner.

Thanks so much!

Anthony

@Kevin Woodard

So I will cash flow for sure, but the question remains, unless I am confused on the process.. my cash flow can and will go towards the heloc, or the hard money lender, but I don’t cash flow enough where it won’t come out of my own pocket, at least not both loans.

I was under the impression that people pull money out of the home, after the ARV has snot up, and they use that money to pay off the loan. However, the reason why I am getting a small heloc, and using a hard money lender is because my home with all of the equity is located in CA. It is rented out where I break even on my mortgage. All of the lenders and CUs don't offer HELOCS on non-primary residences, and the very few that do, don't count my ‘rent money' as income.. so they see a large mortgage for that home, plus a heloc payment of $350k (which is the amount I want) which will equate to over 70% L2V . Which they won't let me take out that $350k because they said I won't be able to afford it. I am so confused and angry as to why I'm not understanding a certain aspect, and why they won't lend on non primary homes, or even take into consideration that my renters pay my mortgage.

I hope this somehow makes sense

@Taylor Dasch

I understand the rule, but I read and hear on the daily that people will finish a property, then pull the money out of that property to pay off the previous loans,, then do a heloc on the property they just finished, just to buy another one and repeat.

Being that the credit unions won’t allow me to take more than $50k out of my house with $700k In equity, not only is frustrating, but now makes me use a hard money lender. Now I essentially have three large payments, (original mortgage on home, heloc loan, and hard money lender) that all seems too risky, and something doesn’t seem to be adding up.

Thanks for your reply

Hey BP family, I have a question?

I am under contract to purchase my first rental property. I pulled $50k out of my current home, as a heloc. I am then getting $300k from a hard money lender to purchase said off market rental, under market value. The question I have is after rehabbing. Due to the current market, I should not refinance at these high rates.. but then how will I pay off the hard money lender and my originals heloc if I don’t refinance? Am I missing something? Should I refinance anyway? I’m a little confused as to how this process works

In case there is confusion: I currently own a home with $700k in equity. I’m house hacking with roommates. I’m going to make the plunge finally on my first true, rental investment property. Due to the market/rates, I am only allowed to pull little out of my own home, which is where the $50k heloc will come from. From there, I have a hard money lender lined up to loan me $350k. I’ll use both loans to purchase, and rehab the rental. But afterwards, I’d like to pay those loans off so I do not have 3 open loans, if that makes sense.

Any help would be much appreciated, and after 2 years of listening to this podcast, hopefully with a little input from you guys, I can purchase this home in the next few weeks!

Thanks so much,

Anthony

@Jaysen Medhurst

Oh the 1% rule. Yes I was thinking of something else.

The $700/month rent is for home under 1000sqft and are old homes. My home is over 1300 sqft and will be fully renovated, for the most part.

I’m looking to get $900/month which would def fit in the 1% rule .

@Jaysen Medhurst

I may have lost that 1% rule.

Lmk the numbers you’d like to see and I’ll post away. (First time so I need help with what numbers you want.)

Thanks @Jaysen Medhurst

Hi all!

Was wondering if I could get some help and information on my first BRRRR property. I know that I might be missing some numbers here, so this is why I'm reaching out.

Home is in Texas.

Purchase price $39,900

Estimated Rehab $30,000

It’s just an estimate, but I’m sure it’ll be pretty close to the real thing, I’ve worked with GC before. I’m not sure of the closing costs yet, or any other fees (this is my first property, so pls bear with me)

Rent in this area is a strong $700/month for homes that are very, very, basic/average, with no updates.

Doing the math on just those numbers alone the total ROI is 12%. Sounds like a good deal.

However where I'm nervous, is in the ARV. As I mentioned above, my home is in disrepair, most other homes are just old and not updated cosmetically. Homes in the area range from 40k-90k, with a few homes in the 90k-130k. And from what I can see the larger homes are pulling in the higher value.. if every home in the neighborhood is valued so low, due to being not updated I'm assuming, then how is my home supposed to appraise for what I want. My home is a larger home, but I'm nervous that my ARV will not be where I want it to be. It would be awful to purchase property, rehab it, then not be able to pull any money out (BRRRR) because it's only valued at what my total cost was..

Does this make sense? Sometimes I think too fast and jumble my words.

Any and all help is appreciated.

Thanks,

Anthony