All Forum Posts by: Bob Manning

@Jason Shackleton thank you for the response. Appreciate the help!

@Kerry Baird thanks for the response Kerry. I’m in touch with my lawyer to see what the transfer costs would be and timeline would look like to put the property back in my name. I’ll pm you to discuss portfolio lender.

Thanks,

Bob

Hey BP,

I own two STR's in a New England ski town. They are both in an LLC. I purchased the 2nd property with a HELOC and now want to refinance to pay the HELOC off. I've owned the property for a year and it's been a great rental so far in year one.

I spoke to a lender up there and was told that Freddie or Fannie will not do a residential refi on a rental property that's in an LLC. This is the first I've heard of this, however I'm relatively new to REI. I'm wondering if putting the property in the LLC was a mistake so soon. I feel like a lot people have their rental properties in an LLC and refi. Am I missing something here???

Thanks for reading

@Brent Coombs. Thanks for the reply and your opinion.  That makes a lot of sense. 

@Benjamin Aaker Thank you Benjamin. I'm glad you said that. I read @ChadCarson book Retire Early with Real Estate and loved his rental debt snowball plan. Maybe taking the profits from both units at the end of the year and putting them towards paying back the HELOC would make the most sense.

@Kevin Romines Thanks for the response Kevin! What I think you’re saying is, I’ll need a year of rental income and a tax return to show a lender before I’ll get a quality loan with a decent rate.

I’m not too far away from the year mark. Maybe I’ll start getting my ducks in a row and be ready to refi in May.

Thanks!

Hello BP,

I had a question or I'm looking for advice on my HELOC.

I currently own two short term rental condos at a Northeast ski resort.  Everything is going really well for both condos.  I'm getting great nightly rents and very few vacancies during the ski season. The properties are cash flowing and running smoothly. There's been significant appreciation there this year as well. All good.

I purchased the 2nd unit with a HELOC I took out on my primary residence in April of 2020. I've been paying the interest only on the HELOC for 10 months now. Am I throwing money away by only paying the interest? I'm wondering what the next step is. Do I refinance the condo in a traditional mortgage now? I'd like to free that HELOC money up to do another deal. I thought by keeping the loan payment low I'd be able to increase cash flow and save up for another down payment.

Any advice is appreciated. 

Thanks!

Bob 

Good morning BP,

Can anyone recommend a good contractor in Freehold, NJ? I’m looking at two properties that both need a significant amount of rehab work. 

Thanks in advance!

@Ian Livaich

Thanks Ian!  Would love to get together to talk Jersey investing.  I'll get in touch soon.