All Forum Posts by: Account Closed

Here's the scenario:

I currently own a 3 family home in New York that has been appraised at 1.1M in the recent months. I currently have a HELOC out for about 150k for expenses that I have incurred over the past few years. I am looking into pulling out some equity and making an investment into another 2 or 3 family home to buy and hold and create some type of passive income.

My question is what are my options? I have heard a cash out refinance can pull out a substantial amount of money from the house (I would need anywhere from 300-500k for down payments and renovating). Are there lots of stipulations and hoops to jump through to do something like that (active income, other assets)? I know that the rent from the investment property would not count as my income when applying.

If anyone could shine some light on this subject I would appreciate it greatly!

Thanks,

Anthony T.

disregard this post, wrong category.

If anyone is looking for an intern, you'll know where to find me tonight ! LOL

Hey Mike, I'm from Brooklyn looking for the same thing I'll be there next week!

I appreciate all the knowledge you guys are giving me! I feel kind of embarrassed, but I'm happy to see experienced investors helping me out. Now the real question is, how do I find someone willing to let me buy for 140k? And will lenders really finance the whole thing plus the rehab? 

Alexander Felice I'm starting to get it now. So if the comps for a 3/1 go for 200k with all the normal upgrades I would base my offer on a flip property like this: 200k is the ARV Less 20k in rehab costs Less the 10k in profit I want 170k would be my offer? And what about if I wanted to keep it as a B&H? Would rehabbing help an appraisal?

@Natalie Kolodij

 Thank you for clarifying! So my numbers would apply to more of a flip deal I'm guessing.  

Now what would the appraisal be after rehab if I wanted to B&H with a refi? Just an estimate.

@Chris Simmons Thank you for the breakdown!

Now isn't that based if the loan term is one year? Or will the lender expect an 11% each year if the term is 2 years? I don't know if I'm explaining correctly.

@Alexander Felice

So if the home is appraised at 100k and 15k is but into rehabbing, how much should I expect the ARV to be?

@Chris Simmons

 I understand there are underlying costs with the lender but can you explain how to you get to $733?

I always hear about people getting deals like this what should be the realistic numbers I should be looking at? Any advice is appreciated!