All Forum Posts by: Ashley Wynn

@Alex Talcott, thanks for the insight. For this particular property, we wouldn't be buying from the auction. The seller is the one who purchased the tax deed property and is now selling. The right of redemption has passed for the original owners. Just curious to see if there's much of a difference between the deeds. 

@Will Fraser, thanks for responding. I'm looking in Alabama. The redemption period for this particular property is over. 

Looking for feedback regarding the pros and cons of a tax deed property, specifically, after the right of redemption period has elapsed. Is it treated like a regular deed? Thanks.

Agree with @Seth M.

I just spoke with PenFed, and they no longer offer HELOCs for non owner occupied rentals. However, this doesn't affect any HELOCs you may already have with them for rental properties. I was a bit bummed when I found out as that's the institution that we always use for HELOCs.

And you can get the true property taxes by looking at the county assessor's site. Be sure that you increase it because as the value of the home increases, so will your taxes. 

Just a few things I noticed. You have a down payment listed for 70k which is the same as the purchase price. Do you have this in cash, and if so, how to you plan to get the other 45k for repairs and closing costs? If you're using a private lender, you'll need to include all the details for that (points, fees, interest rate, etc..). This will allow you to truly get your cash on cash ROI figure. For SFH, I always use a vacancy rate of 10% unless your market truly is 5% which can be confirmed with property managers or other investors in the area. Insurance also seems very low. At only $20/month, that's a policy with a premium of only $240 for a year. If this is correct, pass along the info for that agency because I need that! I would also do a worse case scenario in terms of the refinance. Due to Covid, most institutions aren't doing the usual 75% LTV especially for new investors. A lot of investors are seeing 60-65% LTV. This will definitely eat into your monthly cash flow. Just my thoughts...good luck!

@Ryan Raven, are the properties in your personal name or LLC? If it's in your personal name, you could just wait the 6 months seasoning requirement and get traditional lending for it. If you're wanting to cash out now then commercial lending may be the route for you. There are a few that do 30 year loans but the interest rate starts in the high 6% range. Try Visio or Revolver Finance.

Hi. It really depends on who may have inquired about those properties before you as it goes in order of request status. I've requested quotes before, and it took a few months before I heard anything back. Again, it just depends. 

@Andrew Postell, great info! What do you mean by "...so how do you get your cash back with a HML and a HELOC? It's basically the same strategy but you file a 2nd LIEN on the property for your cash out of pocket expenses. You will have to do this AT CLOSING though...a very important difference..."? For example, if I wait the 6 months seasoning and apply for a refinance on a duplex appraised for 200k, can I not simply finance for 140k considering I owe HML 120k and I spent 20k for costs associated with the HML (down payment, interest only payments, points, etc...) in order to pay myself back?

We just opened up a HELOC with Penfed. It was fairly simple and we were able to get up to 80% LTV. We're treating our HELOC as an emergency fund/reserves pot. It's interest only payments for the first 10 years, but you're only paying interest on the amount you use. It's really helped us in qualifying for hard money loans since we have that extra cash in addition to our regular savings.