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All Forum Posts by: Brian Stevens

Brian Stevens has started 1 posts and replied 9 times.

Post: Pre/Post Foreclosure and Legal Discussion

Brian StevensPosted
  • Flipper/Rehabber
  • Gresham, OR
  • Posts 9
  • Votes 3

Do you have monthly meet ups? I'm from the area and am looking to attend some. Thank you.

Post: Should I Refinance My 5 Plex

Brian StevensPosted
  • Flipper/Rehabber
  • Gresham, OR
  • Posts 9
  • Votes 3

@Mary Mitchell

I have other deals that I’d like to go after, I need some capital to do this. My predicament is that as soon as I refi the property I will be doubling my interest rate and my payment will also go up accordingly. I will be held to a forced refi because of commercial lending. I know I will be ahead in the long run because I will increase my cash flow and I will add equity to my portfolio but I’m also adding more risk and more work to my life. I guess I’m just thinking out loud now. I should probably just look for outside financing and let the 5 plex soak. I love bigger pockets because a lot of us probably know the answers to our own questions but it’s hard to see them until you write down your question. Thanks for your response.

Post: Should I Refinance My 5 Plex

Brian StevensPosted
  • Flipper/Rehabber
  • Gresham, OR
  • Posts 9
  • Votes 3

@Mary Mitchell

I know I’m not alone! I like having the cash flow but it just sucks to leave equity sitting, I would love to find a equity line on it. I have debated on moving my residency back into it and bringing it back to a four plex just to pull the equity out. I’d say conservatively there’s 300k in equity.

Post: Should I Refinance My 5 Plex

Brian StevensPosted
  • Flipper/Rehabber
  • Gresham, OR
  • Posts 9
  • Votes 3

Are there any banks or lenders that will allow an equity line or a second mortgage on a commercial property? I have called all the banks and credit unions in my area and they all want to be in first position!

Post: Should I Refinance My 5 Plex

Brian StevensPosted
  • Flipper/Rehabber
  • Gresham, OR
  • Posts 9
  • Votes 3

@Diana Muresan

Just to paint a more clear picture. This is a 5 plex that I converted from a four plex after getting residential funding, 3.25% apr for 30 years it’s zoned commercial and zoned 5-8 units. It sits on a 2+ acre piece with the plex and parking lot sitting at the very front. I bought it for 350k, I owe 315k, it grosses 5600 a month. It is currently listed at 950k. It has had some activity but no offers yet. It clears about 32-3400 a month depending on water and electricity. I am married with six children. I recently purchased three homes with additional tax lots that I’m trying to develop. I was hoping to get some advice on how to access some of my equity from the plex to help with my other investments and continue to invest. We are currently house hacking and my wife is at her wits end. I know that I can put the money to work if I refinanced it but it pains me to give up that rate. The property has future development potential as well. I’m curious what the BP crowd would do?

Post: Should I Refinance My 5 Plex

Brian StevensPosted
  • Flipper/Rehabber
  • Gresham, OR
  • Posts 9
  • Votes 3

I understand that concept. The property cash flows over 3k a month currently and I look at the equity as money for potential growth in other areas or within that same property if I could pull money out. If the market goes down than that equity number changes but my cash flow should stay the same or close too. The question that I keep asking myself is “what is 3400 a month worth in passive income”. Meaning how deep would I go in debt to get that return? Everything in my Gut says that paying it off is the way to go because I will then have 5000 a month in passive income for the price of 315k! Then I think that if the money is only costing me 3.25 to borrow than maybe it’s not the best choice and my money should be used elsewhere. I hope I’m explaining my dilemma appropriately without getting too wordy. I understand that this is kinda a good problem to have, I just really want to make the right move! The property could pay itself off in about ten years if I just put the money back into the property but I’d be only saving the 3.25 interest rate.

Post: Should I Refinance My 5 Plex

Brian StevensPosted
  • Flipper/Rehabber
  • Gresham, OR
  • Posts 9
  • Votes 3

All great information! I am new to the BP family and I finally thought I’d just ask for a little help! This is a commercial property and is zoned for 5-8 units and it sits on 2 acres. Cash flows well however the interest rate keeps me from doing anything. I have thought about doing storage units on the lower half but how do I offer security to an investor?

Post: Should I Refinance My 5 Plex

Brian StevensPosted
  • Flipper/Rehabber
  • Gresham, OR
  • Posts 9
  • Votes 3

Thank you for your response! I keep hearing that it’s not smart to keep a lot of equity sitting in a property. I have 300+ in equity that I can’t get out. I also feel like it’s not smart to pay more on this property because the rate is low. I’m just kinda confused as to what my best move is from here. My wife and I have six children and we are currently house hacking and doing our best to still move forward while trying to raise a family. I have maxed out my LTD for purchasing and feel like I’ve hit a wall.

Post: Should I Refinance My 5 Plex

Brian StevensPosted
  • Flipper/Rehabber
  • Gresham, OR
  • Posts 9
  • Votes 3

Please help! I worked really hard on my first multi family property and created a lot of equity but also was able to lock it down on a 30 year mortgage at 3.25% apr. I’m not sure if I should refi and enter the commercial world of finance and pay a higher interest rate with the unknown of future rates and having to be forced to refi every ten years. If anybody has creative ideas to get some of my equity out and still keep my loan please chime in. The banks will not do a second on a commercial property. Thanks in advance