All Forum Posts by: Carter Mayberry

Yes, it is currently an FHA. I would be financing it to a DSCR and moving it to an llc at one. Yes i am living in one unit

Awesome, thank you. I wasn't sure if asking my FHA lender about switching it to commercial will raise red flags. Sounds like they could have different PPP or fees that go along with refinancing with a different lender. I appreciate you pointing out the taxes and future depreciation or capital gains.

Yes, 3/4 are rented. I am living in one unit but the lender is aware of this and said we can still move forward with it. Yes, I misspoke about the DTI. My debt on this home will show, but so will the rental income from it. LTV at this point is 58% ish.

My current LTV is 58% right now. Current FHA loan is 225k and appraisal is 385k. Remodeled all the units and brought gross income from $30k to $43,500. The lender I'm talking with is planning on 75%, I just want to make sure their isn't anything with the FHA loan that says I cannot refinance and move to a LLC without consequences.

Bought a 4 plex with an FHA loan under my personal name. Closed on it January 19th 2024. After renovating, I'm ready to refinance and push the property to my LLC. Am I going to run into any issues with this if I close before a full year? Any taxes or other issues that I may run into down the line?

The goal is to pull the 60k worth of equity out and free up my FHA & DTI so I can rinse and repeat. Just want to double check I'm not going to run into any issues. Thank you!

Additional Thought - Would a line of credit/heloc against the equity be a possibility? Until I wait for the seasoning period to be over.

How can I pull the equity out of this building? Is FHA refinance or cash out possible before 2 years? Can I sell it to my LLC? But then my LLC will need a down payment and I wont have access to the equity right?

Jan 2024 > Purchased a 4 plex with an FHA loan. $230k - I believe $5000 out of pocket, seller paid closing costs etc.

January - Today > Remodeled Unit 2, 3 & 4 New Flooring, Kitchen, Bathroom, Tiled Showers, ETC.

Today > Resigned Unit 1. Its good, didn't need a full remodel and tenant stays there 1 day a week because she travels for work.

Now I am ready to pull my equity out, move onto the next project. I have way too many tools/supplies for an apartment and a very high drive German Shepherd. Ideally I move into my own home with a minimum down and use the rest of the cash out to flip or brrr again. I'm open to a duplex but I need a yard and garage. 

How can I pull the equity out of this building? Is FHA refinance or cash out a thing before 2 years? Can I sell it to my LLC? But then my LLC will need a down payment and I wont have access to the equity right?

$230k Purchase Price

$225k Balance

$25k+- in renovation materials. I did all the labor and will have to come up with my labor worth (Finalizing this number but its in this ballpark)

$3,575 Current Rents > $2,545 Previous Rents (40% Increase)

             - Unit 1 $595 to $750 - Unit 2 $650 to $900(when I move out) - Unit 3 $650 to $1075 - Unit 4 $650 to $900

$360k - $400k ARV > $380k x 75% = $285k - $225k = $60k Cash Out? (True comparables are very limited)

Thank you!!

This is for a friend of mine and I don't know Colorado Law.

My buddy has rented a townhouse from a guy for the past 3 years, re-signing a 12 Month Lease in July '24. Last week the landlord mentioned he wanted to sell the townhouse but had another home available that my buddy could move into. They met in person and looked at the house. Though slightly inconvenient, my buddy  agreed to move into this home and increase his rent from $2,000 to $2,900 so the landlord was able to sell the townhouse. They've had a good relationship for the past 3 years so as a win win, they would move so he could sell the townhouse but he would lower rent a bit to $2,900 so it wasn't such a jump in rent. A new lease was never signed for the swap.

4 days later, the landlord is now retracting the offer for the swap to the new home and would like my buddy to just move out of the townhouse. Is he able to kick him out if rent is paid on time every month and no parts of the lease have been broken?

Keep in mind my buddy is 28, a manager at a large tech company and very responsible/clean. He lives a standard young professional life, so no damage or issues have come up in the past 3 years that could break any lease terms. 

Any thoughts? Does he need to get a lawyer and if so, any suggestions?

Thank you!

In Iowa looking at a house for $20k. It was a 3bd/1ba 1050sqft, gutted to the studs. Does anyone have any updated number for a "mid grade" fix and flip from the studs per sqft? I saw previous numbers of $70sqft? I can do most of the work if I needed to but for timeframe reasons, I'll probably hire some of the work. Yes, I should get quotes from contractors but the owner wants it under contract before I start sending contractors to the house. Just looking for some rough numbers. Comps that are clean but outdated are selling for $100k - $130k Thank you!