All Forum Posts by: Anthony Pantuso

Hello everyone. I'm looking for property management recommendations in the Rock Hill, SC area.

Thanks!

Tony

Quote from @James Alderman:

Is the legwork and costs associated with the first conventional loan necessary? Can you max out the HELOC and find another $10k to finish the rehab? Then you'll only need to refinance and pay the loan closing costs once.

I can see the benefit of immediately refinancing if you don't have the extra $10k, if you're concerned that the rehab may exceed your estimate, or if you'd like to have the HELOC ready to purchase other properties while this one is being rehabbed.

Thanks for the reply James. I have other cash reserves to cover the delta in the rehab, so yes I should consider just maxing the HELOC. I'll finish this deal first before getting into the next. I'm a bit afraid of what interest rates are going to do since they are changing so rapidly, but the reality is I can handle the interest only payments until I can refi once. 

Hello Bigger Pockets community!

I'm working my first BRRRR deal. The property is going on market soon with an asking price of $220K. I estimate a rehab of $40K (very conservative). The ARV conservatively would be $270K, maybe closer to $300K. The seller wants a cash offer. I have a HELOC on my primary residence for $250K, so I can easily use the HELOC to offer cash. I would like to immediately refinance to a conventional loan very soon after closing, then turn around and use the recharged HELOC to fund the rehab and then finally refinance again to pull my cash out.

I spoke to my lender today who told me that Fannie/Freddie loans would require me to first hold the property for 6 months prior to the first refinance. The lender told me I can pursue other financing options, potentially through a local credit union, for the first refi and then after 6 months refi with them. 

So my question is, is the info I received from my lender accurate? How are you handling the same situation?

thank you!

Tony 

Hello everyone,

My name is Tony Pantuso, I'm just getting into real estate investing. I'm currently located on the east coast of Florida, specifically the Melbourne area. I've spent the last few months educating myself on investing. This year my wife and I are ready to jump into investing. We are focusing on multi-family and single family with the goal to replace our income with the cash flow from our investments.

I can use help on CPA and lawyer suggestions to help structuring my LLC and prepare my taxes.

Thanks in advance! I look forward to interfacing more with this great community!

Tony