All Forum Posts by: Bruce Weisenburgh

Justin, great to hear from a fellow Cincy investor! As we are newbies, it's great to get feedback especially from the locals! Also, thanks for the feedback on smaller/no profit based on the next 'bigger' deal. Since we have the next deal lined up, our 60% covers the buy and rehab to put a new renter in it. (Option #2), and hopefully we can HELOC and have some non-interest paying monies available for the 'unknowns' that I'm sure will arise. BTW, do you attend the local REI meetings?

JD, Thanks for the response and great point on the value/cash flow at the 80% LTV, one point is that we think the appraisal was higher than we could sell anyways based on our own comps, so we do have a small profit at 80% of what we believe the true selling point is. We're definitely looking at the option #2 for now @ 60% to be safe. Thanks again for the great input!

Clayton,

Thanks for the response, and agree, don't think we want the negative cash flow either. We're in Cincinnati, great market, hopefully still growing over the next years, and we're definitely in this for the long haul with the BRRRR strategy. I do like the Option 2, as we hadn't thought about that, and I've already reached out to the broker and asked this question. I'll pm you the bank we're using as we are not working with them directly but through the broker I mentioned. Thanks again for the quick response and I'll be in touch soon.

All the best,

Bruce

After buying our first rental last fall with cash (LLC with business partner), we are currently refinancing the first property to a cash out refinance in order to invest in second property. The appraisal came back alot higher than we expected and the bank is allowing 80% LTV, which is way higher than we want to take out due to our rent. After considering PITI, cap. expenditures, repairs, vacancy, we were shooting for $250/mo net, which is achievable, but based on our appraisal, we can take out alot more money and have a zero net. Is there any advantage to maxing out our LTV on our first rental, so that we can have extra $$ for the next house, or does it depend on the next deal? We have the next deal lined up, and we are approved, just need to let the bank know what we need. Current decision is to take out 60%, leaving us with $120/mo after (PITI, cap. expenditures, repairs, vacancy,) and this will fund the purchase and rehab of the next investment property. Thanks in advance to any insight.