All Forum Posts by: Arthur Schwartz

you have the tools and financial acumen to do a series of what if scenarios.  change one variable at a time treating this as a single property.  vary down payment; ltv; and expected purchase price.  also consider sitting tight and using the cash flow to pay the current mortgages down to zero; you may find that you don't need a new purchase.  let us know what works! 

i'm interested in following this

they get a hard money loan for the property; then they get a draw on a line of credit as they prove to the lender that each item has been rehabbed

for such a small addition, skip the architect and just get a general contractor

What methods are there to convert poh to toh?

Yes and I don't recommend.  The prices will be better in more rural small towns than more urban areas.  If you are handy and you live locally, it may work out  But if you need a contractor to come from a larger city, they will charge an arm and a leg, if they come at all.  And if you move, who is going to manage the property?

Consider bringing in a new partner to help with funding, and offer them a guaranteed return or a percent ownership

From your PITI, how much is the monthly or annual pay down on principal?

you can probably get it insured through citizens. ( if you close the claim, the likelihood of reopening is zero)

Either selling or a 1031 exchange, the equity as a 20% downpayment would allow you to buy up to $600K new property. Or, you can use the equity as a 5% downpayment to purchase a duplex, triplex, or quad, as long a you live in one unit for a year, under the recently announced rules of FHA Fannie, and Freddie