All Forum Posts by: Bridget Ariel

Hi Kerry, We are in Los Angeles so it's really challenging to find a property with positive cash flow. We just started and this is our first property. The low interest rates helped. We live in the back house and rent out the front house. When we get the back house legally permitted as an ADU we can easily rent it out for $2,500. The back house has an epic 180 degree view of the ocean so we can rent it for a premium. We room share with our 1 year old and the second bedroom we want to build will be for him. There's time to decide but we don't yet know if we will rent the back house and move to another similar property or just buy another property while continuing to live here. $1,000 is cheap rent in Los Angeles for an ocean view property if we can make it work as a family.

Hi Tim, Will ask. I didn't know that was an option but yes, that sounds like a much better plan. 

Bought a house for 1M with about 230k down at 2.9 interest for a 30 year mortgage. House includes a non permitted, detached ADU in the back where I live. The main house is being rented for $3,700. My mortgage payments including property insurance, interest, etc is about 4,333.00. I want to add a second bedroom to the 1 bedroom "ADU". The cost is about 80k. We are looking into refinancing and pulling cash out. Our appraisal came in at 1.15M one year after purchasing the house. Is there a better way to borrow money for the addition? Our broker sent us new rates ranging between 3.5% - 3.75% and our payments would jump $300/month plus closing costs. This is for a 30 year fixed mortgage. Thoughts?

Bought a house for 1M with about 230k down at 2.9 interest for a 30 year mortgage. House includes a non permitted, detached ADU in the back where I live. The main house is being rented for $3,700. My mortgage payments including property insurance, interest, etc is about 4,333.00. I want to add a second bedroom to the 1 bedroom "ADU". The cost is about 80k. We are looking into refinancing and pulling cash out. Our appraisal came in at 1.15M one year after purchasing the house. Is there a better way to borrow money for the addition? Our broker sent us new rates ranging between 3.5% - 3.75% and our payments would jump $300/month plus closing costs. This is for a 30 year fixed mortgage. Thoughts?

Bought a house for 1M with about 230k down at 2.9 interest for a 30 year mortgage. House includes a non permitted, detached ADU in the back where I live. The main house is being rented for $3,700. My mortgage payments including property insurance, interest, etc is about 4,333.00. I want to add a second bedroom to the 1 bedroom "ADU". The cost is about 80k. We are looking into refinancing and pulling cash out. Our appraisal came in at 1.15M one year after purchasing the house. Is there a better way to borrow money for the addition? Our broker sent us new rates ranging between 3.5% - 3.75% and our payments would jump $300/month plus closing costs. This is for a 30 year fixed mortgage. Thoughts?

My husband and I bought our first home 1 year ago for 1M with about 230k down at 2.9 interest. Our payments including property insurance, interest, etc is about 4,333.00. The house has a detached 1 bedroom "Rec" room where my husband, son and I live. The main house is a 3 bedroom house we rent to a wonderful tenant for $3,700. She's an A+++ tenant...always on time with her payments, has lots of reserves, and she was at her last place for 32 years. Our son needs his own room and we've outgrown the 1 bedroom rec room. We are looking into building a second bedroom for the rec room so we can stay there and continue get the rental income. Our appraisal came in at 1.15M. The new rates came in as follows if we borrowed cash. I am so confused and no nothing about this and if we should move forward or borrow the money for the second bedroom another way. 

Loan Amount: $862,500 / 30 year fixed / 75% LTV

Loan Amount $920,000 / 30 year fixed / 80% LTV

The owner wants 2.6m cash, zero contingencies and sold as is. What if investor#2 defaults on the loan and investor#1 buys his debt and continues to pay off the loan? investor#1 will get the property at a discounted rate assuming investor #2 stays for at least 1 year?

Investor#2 is the current tenant and has been running a business from the property and paying 11/000 rent per month and has a NNN lease. The other investor is my family putting up the cash. Unfortunately, no banks will loan money on the property because the land is contaminated. Most of the buildings in this area have some level of contamination. It's a booming area. I've watched the property for the last 8 years go from 800k to now 2.6m and they already have four cash offers from investors according to the owner and realtor. The owner said he prefers to sell to the tenant. I was hoping to make this work for both parties and minimize the risk for the investor putting up the 1M+ cash

Thanks for your feedback. As long as the property being bought isn’t used as collateral then it’s ok, right?

I see what you are saying. It’s not a fair deal. Investor #2 doesn’t own assets. Back to the drawing board 

Two investors are buying a warehouse. One investor is investing 1.3M cash and the other got approved to put in the remaining 1.3m through a hard money lender. The loan is secured by a first trust deed against the property. The term is 12 mos with a balloon payment at the end of the 12 months. The broker who found the loan swears she can find another loan with better terms during those 12 months to avoid the balloon payment.

How do you structure this so it’s fair to investor #1 who put it in their own cash?