All Forum Posts by: Brandon Bartley

Thanks @Nicholas Covington! When you say verifiable income, would this just be a matter of showing the lender signed leases from my tenants? Or would tax returns from the past two years showing the rental income also work?

@Marcus Auerbach Thanks for the advice! A 30 year fixed could be a great option so I can maximize my cash flow to grow my portfolio like you mentioned. I will be sure to talk with few more local lenders this week to go over the details of what a cash out refi would look like in my situation

Three years ago, I invested in my first property as a primary residence, a duplex in NY that is worth about $125k and I owe about $74k on it. At the time, I didn't know much about the power of HELOCs and ended up going with a large national lender that does not offer any type of HELOC product, but was able to get a great fixed rate of 3.875% for 15 years. I have since moved out of the area and would like to purchase another property using some of the equity I have in the duplex, but the local NY lenders that I have talked to have quoted me rates at 6.5%+ for because it is no longer my primary residence.

The NY property still cash flows at this higher rate, but the prospect of my rate nearly doubling on the property is hard to swallow. My question is, are there any other options for using the equity in the property on another deal that I have not thought of? Also just looking for any insight from people who may have gone through this process before and how the determined if the refinance was worth it.

Thanks!

@Blake Edwards Congrats! Looks like a great deal. BRRR investing is definitely something I have put down as a goal of mine in the near future. It's great to see the details of deals like this for motivation!

Congrats @Jon Ward! Looks like a great deal! I'm currently looking to buy a small multi family property in Charleston to house hack in the near future. Hoping to get into something with numbers as good as this!

@Troy Gandee Great, thanks Troy. Do you have a recommendation for a good mortgage lender to talk to in the Charleston area? 

@Troy Gandee It sounds like the conventional would make much more sense for my situation. That's good to know about the first property not affecting my DTI for the next property too. Thanks again for all of the information. When you say you've helped others leave one multifamily and buy another do you mean as a real estate agent?

@Bryan O. Thank you. I will be sure to start meeting with lenders to see what their requirements are for my situation

Great, thank you @Bryan O. Right now, I am renting in the short term so buying a primary with the FHA or conventional should seem reasonable to a lender. I will look into a standard conventional loan as well, having the PMI drop off at 20% equity is definitely a plus..

One other question I had is, I recently purchased an established business in Charleston that has been in business for 30 years. To acquire the business I created a separate LLC and did an "asset purchase" to protect from any liability associated with the previous owner. Even though my LLC will show it was created in 2018, I assume that a lender would accept tax returns from the previous LLC if the name of the business, clients, and nature of the business all remained the same in the ownership change. Am I correct to assume this or would the lender want to see 1-3 years of returns for the newly established LLC to qualify for financing? Any guidance on this would be greatly appreciated.

Brandon Bartley

@Melvin List Thanks Melvin! I appreciate your help