All Forum Posts by: Chris Rosenberg

Hey everyone. I'm looking to venture out into other markets as my home market (Myrtle Beach) has been pretty tight for a while now. I've been looking at a few areas and Columbia, SC is on my radar. I've been looking for 1-4 unit BRRRRs. The numbers seem to pencil out but I'm trying to figure out these property taxes. I know it varies based on tax district, but it seems like taxes are 3-4% of market value. Is this correct? And do they reassess after a rehab or do they basically go based on sales price? I mean $6k taxes on a $150k house is pretty steep. 

And although I prefer small multifamily, it seems like SFR works better in Columbia based on price points, rents, and tenant retention. Are you finding this to be true? Thanks in advance.

We have 2 monthly meetups in Myrtle Beach. The groups are on meetup.com. One is called the Horry County REIA which meets the first Tuesday of the month and the other is the North Myrtle Beach REI meetup which meets the second Saturday of each month.

 @Ricardo Dunmoodie Congrats buddy. I’m happy for you guys. It was worth the hustle. 

@Christle Stezskal For a new purchase I would say 75-80% LTV and around 5.5% with 2 points and a 5 year prepayment is pretty standard for a DSCR loan. Depending on your credit score and experience of course. You may be able to find better rates and terms if the property is newly rehabbed.

 And in my experience it’s more like a rate promise than a rate lock. 

@Myrtle Mike Thompson gave some great advice for our local market. If you’re looking for condotels your best bet is to go local. 

@Steven Goldman I 100% agree with you. DSCR loans are my only option bc of my DTI but some of them close very fast. I've had one close in about 25 days (not business days). My last refinance which was last week took about 45 days. The appraisal took a while.

@Christle Stezskal My appraisals cost about $850 for the value and income reports. I’ve also had rates jump on me during the process but still got a good rate. Points and fees didn’t change. It was I think 1.75 points and $1000-$1500 in fees. 

No matter which market you pick, I absolutely love using a heloc to pay cash and brrrr. Especially if you have cash reserves to back it up. I almost exclusively use that strategy. It’s the cheapest money I can borrow and I have full control over it. But if you do that you might want to speak to some lenders first to see what their requirements and rates and terms are on those condotels if that’s what you’re interested in. 

@Karl Brenner Hey Karl. It sounds like you are just doing delayed financing. I'm guessing you want to wait for a lease to get signed bc you are qualifying for the loan based on DSCR, not personal income. Most non conforming lenders will allow around 75-80% delayed financing. For cash out refi most require a 6 month seasoning period, although some banks are more lenient and only require 3 months. You probably need 6 months of reserves and a decent credit score. If you need any recommendations feel free to PM me.

@Monica C. Hey Monica. For a pm in Myrtle beach I highly recommend Pete Schmidt. He’s a BP member. As far as the stocks vs real estate debate, who knows. I have my stock buy orders ready (at much lower prices than they are now) and I’m also still buying real estate and refinancing a few properties to lock in some good interest rates and unlock some equity. I think it’s a great time to refinance, but as far as new purchases the inventory has been so tight here I’ve only bought off market. Competing long distance here against local investors will be extremely tough, you will have to pay up and all cash. Unless you want to pay market price for a multifamily that’s probably doable but single family is on fire. 

@Eric Brust PM me. I have a few recommendations. 

@Mark Fitzpatrick I’m guessing your condo is not in an area that would make it a successful short term rental, otherwise that would be my plan. I would probably rehab the kitchen, raise the rent, do a cash out refi before interest rates rise, and put that money to work. Your mortgage payment will be higher after the cash out refi so make sure it still cash flows. Or just rehab and sell, and put that $100k into a multifamily property that has better cash flow.