All Forum Posts by: Anthony King

@Tim Kaminski second the estoppel agreements. The title company should also have the prorated rents on the closing docs as well as the security deposits to convey. How is that not already acconplished? Your realtor dropped the ball on this. Do not close until prorated rents, estoppels, and security deposits are figured out.

@Greg R. Gotcha.

@Greg R. Why can't he 1031 in a year?

@Nick Weisend If you're looking to quickly scale like your profile says I would keep it and take out a HELOC while it is a primary residence and take advantage of the higher LTV. Since you lived there greater than two years you can rent it out for another 3 years and avoid capital gains if you sell within 3 years of moving out. However I would hold onto it longer and do a 1031 when your ROE gets below the return you can get if you sold and redeployed that money. Either exemption will allow you to avoid capital gains.

Once you open the HELOC I would take that money and use toward an FHA or other low down payment option on another small multifamily and house hack for 1 year. Rinse, repeat, then cash out refi each property every couple years and keep buying more and more.

@Bobby E. You can keep one door and get $1800/month minus PITI and expenses, which equates to a couple hundred a month in cash flow. What is your Return on Equity if you do that?

Or-

You can cash out that equity and get five doors that grosses $3550/month minus PITI and expenses....and the all in cost to you is 82k, with 35k ready to do it all again.

Run the numbers yourself, but I would take option B all day.

@Kris Marmol multifamilyu dot com has a quick apartment analyzer under resources.

@Malcomb Stapel $1,075,000

@Joshua Esparza no points for either bank. They are both local banks in NE Ohio and just about all other terms are the same. Both have prepay penalties in first 5 years unless I refinance with them. Each one seems to get their rates differently and the 6.6% option adjusted almost daily. The 5.91% option has not change since the first day I inquired about financing about 6 weeks ago.

What is the best way to compare mortgage options if the down payment and interest rate are dissimilar? I know a lot of people say to put the least amount of your own money into the deal as possible, but that can't always be the case.

For example I have two commercial lenders who have approved my purchase on a 16 unit multifamily.

Lender A wants 20% down, 6.6% interest on a 20 yr amortization.

Lender B wants 25% down, 5.91% interest on a 20 yr amortization.

Do I look at IRR or ROI at some point in the future to compare the two? Or something else?

If the 20% down option had an 9% interest rate, you'd probably be better off with the 25% down and 5.91% right? At some point the higher rate stops being worth the lower down payment, but how do you know when?

Thanks for the help!

@Benjamin I Singer Forgive me if this sounds a little too harsh, but unfortunately there are no step by step guides and if you're asking these types of questions I don't really think you have what it takes....yet. You have to be a self starter. You're not an employee, with a boss who tells you what floor to sweep, and when you get to take a bathroom break. You have to do the work and you have to think like an entrepreneur because that's exactly what you are in this business. There are no shortcuts and no one is going to hold your hand. Start reading, researching, watching videos, going to meetups, etc. Go down rabbit holes learning about new terms, how to analyze a deal, etc. Good luck.