All Forum Posts by: Ashley Cross

Hi Timothy! How much did you purchase the property for and what is the ARV? Within 6 months you can pull your acquisition costs.

I agree with Jesse. It doesn't really matter if the job is traditional or not. It's more important that you can show consistent income over the last two years. There have been plenty of people that have seasonal jobs or commission based income that have been able to get a mortgage. You just need to have the documents to prove it. 

It’s not as complicated as people think. Something as simple as what Zack mentioned is sufficient. 

Lines of credits are great but I would only go that route if there isn’t an option to borrow against the asset for a cheaper rate. The rate starts at 7.99% and there are 30 year fixed rate options for much lower. 

If you are able to cash flow and take advantage of historically low rates I would do that. As long as you are utilizing the cash to invest in other cash flowing properties I believe it’s a win win. Also, you’ll definitely be able to raise rents and increase your cash flow but that mortgage payment will be fixed. Unless your at the point in your investing career where you no longer want to acquire.

Freddie/Fannie guidelines prohibit lending to entities (the borrower must be an individual) and you will get the best terms with conventional financing. It is ultimately your choice but there are other ways to limit your liability if that is your reasoning for requesting the loan be in the name of the LLC. You can talk to an insurance broker about umbrella insurance or transfer title to your LLC.

That makes perfect sense. The only thing I would suggest is ensure you can get pre-approved for a loan once the home is improved. It doesn't make sense to do all of this work if you can't get the cash out refi done. 

Evan explained it perfectly. I don't think it would be beneficial to pay for two appraisals. Reviewing your comps is an important step to do before you start the renovation to ensure you will be getting the best bang for your buck. For example, if a comparable has carpet throughout and they are at a value that's the top of the market, it wouldn't make sense to do LVP throughout the house unless you have other reasons that make sense financially. If you have 6 months seasoning and you are less than a month from completion I would reach out to a lender and start the process.   

You sound like you are well on your way. I wish I had the courage to do what you're doing that young. I think it would be beneficial for you to get a mentor and work with someone directly. It's great that you have tried things but learning directly from a mentor will help mitigate your risk moving forward. Good luck with everything. 

Hi Francisco! James is correct. If you are purchasing a single family investment property, you can pull 75% of the appraised value. If it is a multifamily investment property you can pull up to 70%. For a primary residence you can pull 80%.