All Forum Posts by: Account Closed

Welcome David Nutakor and happy to have you, newer here myself as well but the knowledge is invaluable. Happy investing!

I had a repairs estimated at $2,400 / $2,800 / $3,000 and went with a structural engineer to come out and look, mine was a cracked foundation by some basement Windows, but after the engineer - $300, and $150 in mortar and I was able to fix it in an afternoon and get his follow up report for structural soundness. If you're able to and have to have some repairs maybe seek out a structural engineer, it may save you big time.

@Wilson Churchill - This was Huntington Bank, I do have a relationship with them and I am based in Ohio but I believe they are in MI, OH, IN, KE. I imagine this is a bank wide This was the information given to me in today's meeting with the loan officer. I will post a follow up after I have closed on this account and can put the exact numbers on paper. I was like a kid in a candy store today going through this. I have really been struggling to find something so efficient. Once I move forward I will post complete terms on this! From my understanding this was limited to residential or 1-4 unit properties only but again I'll post more info as I learn more. 

Scott, I also invest in the Cleveland Area - Brooke Park / Parma. We should connect depending on your long term investing goals.

UPDATE: I went browsing today after work and met with four lenders, the first two did not do HELOCs excluding primary residences but they forwarded me to the other two one being a local credit union - which did non owner occupied HELOCs but on a 5 year basis at 1.0% above prime, 1 point at closing, and 80% LTV. Then the last bank I went to is who I ultimately plan on working with does a HELOC on non owner occupied residences at a $500.00 closing cost, 0.5% above prime rate, 75% LTV, and a ten year payback term for amounts that after 10 years modifies to a 20 year payback term. Even with the lower LTV, something really stuck out to me about how they handle it. They have a portfolio lender stipulation that if the customer owns more than one investment property with third party appraisals documented per property that the property can essentially be added to the HELOC pool and the equity owned is added to that pool at the 75% LTV as well. Any structural changes have to be reported and approved and the structures have to be in liveable conditions the entire time in the HELOC pool - so no rehabs until they are finished. But post rehab this seems to be a good long term fix / approach as I am more of a buy and hold investor of distressed properties than a flipper. I appreciate so much the feedback on this topic. Thank you all who responded.

I have a 3 unit in northwest Ohio that I bought with cash at tax auction, needing $60k in rehab. Current Reserves I have about $20k. One of of my rental units SFR appraises at $50k. I own that unit free and clear. But with renters in place I am having trouble finding the lender to accommodate a HELOC hopefully about 80% LTV Ratio so about $40k so I can complete the rehab and put tenants in place. Ideas or advice on what lenders in Ohio? I feel as if national lenders do not want to loan HELOCs on non owner occupied properties with the low amount of only $40k. Thank you for anyone taking time to respond!

Can't beat it! I am doing something similar to this in northwest Ohio and getting a $50 positive cash flow each month, it's not much but it's amazing how much more we can put back to find other deals! Great job!

     Here's the breakdown and background. I am not seeking out private money here, I am just asking what could be the best way of approaching financing for this deal. Private vs. Conventional?

I did my due diligence on this deal for about 3 months of prep. Good market drivers and tenant base in the area at the right price. (northwest Ohio). I ended up purchasing a close to complete rehab job at tax auction for $20k cash. I moved the parcel into an LLC. The parcel consists of 2 building structures, a single family home with which I evicted the tenants out of after they were living there for a year rent free (and without jobs) before I bought the parcel. The other structure is a triplex with some considerable water damage. Current evaluation of the property is $91k with an ARV of $170k. The total rehab is $60k for the triplex and $15k for the single family home. So I would be in the deal for $95k at the end. I am currently trying to separate the parcel to split the properties. The triplex work has already started with the structural engineer assessment complete and working on a new roof and mortar fixes between the bricks to have the triplex ready for winter. The single family is structurally sound.

     I will have about $40k of my own money in the deal but this is the first deal to where I can not finance the entire deal on my own. My immeadiate steps are to winterize the triplex, split the parcel and then focus on rehabbing the single family first to get some tenants in to help with cash flow to cover holding costs and financing expenses to come. I have never sought out private money before and that is the weakest area in the real estate investing arena. Would this be a good time to seek that out private money for 12-15% with as much skin in the game as I have, or would it better to seek out conventional financing after the single family is complete? 

     I also have a W-2 job paying $70k a year to qualify and give a personal guarantee either way. Any input is very much appreciated!