All Forum Posts by: Christian Nachtrieb

Hi BP,

Question about a new property I'm closing on Tuesday. My fiancé and I currently own 1 rental property together that's set up in an LLC together. We bought it with conventional financing and immediately transferred it into an LLC we setup with its own business bank account and such. Everything's been going just fine with that. We're getting married in December so waiting until AFTER the wedding to begin the rehab work on this new one (currently a tenant is occupying the unit so we'll be collecting cashflow in the meantime). My question is for this new property... How do we handle the finances of this property while it's in "limbo" prior to transferring it over to our LLC? This will be a BRRRR, and after it's done I'd like the LLC to have both properties in its name.

-Should we just do it immediately like last time?

-Do I need to establish a separate checking account if it is going to be held in our names for a few months before we rehab / refinance?

What are your thoughts? Thanks everybody.

Christian

@Dan Barli Oh I see what you're saying Ok that makes perfect sense, thank you my friend. 

Sounds like you already got some good responses, but will also add one more for you. Hanscom Federal Credit Union was awesome for helping close my first HELOC. I worked with Diane Mautino, got a rate of Prime +.5%. Whole process was fairly straightforward and took about a month from the time I first emailed them.

I'm doing a HELOC now to pick up a property in Dorchester, however I'm pursuing a BRRRR strategy with the intent to paying back the entirety of the line of credit after the refinance. Careful about just taking out a HELOC without a plan in place to repay the funds, as interest rates are rising and likely will shoot up 2 more times before the end of the year.

Are you saying that you can lock in a refinance rate even before starting that process, such as *during* the seasoning period immediately after purchase? Wondering if you could elaborate in this point, thank you!

@Adam Anderson I'd say go for it. I have one property in Dorchester near Ashmont and another I'm closing on next week just down the road. What neighborhood of DOT are you looking at for this deal? @Kate

@Kate Ziegler undefined is spot on with the timing of rent. Even missing the 9/1 frenzy by 2 months can force you to take a little ding either with reducing rent or having to wait for a QUALITY tenant to come around.

@Michael Lee Ok, I'm intrigued haha. Who is the mystery man I would love to devour his YouTube channel!?

Hey @Kate Ziegler Thank you for the tip!! So that's what I'm working on this week I'm actually going down to the Housing Authority this afternoon and that's something I'm going to discuss. I currently do not know what portion of the rent the tenant pays the current landlord. 

Hey @Christopher O'Brien I'm putting 25% down, but your numbers aren't quite right. Any & all cash brought in pre-rehab is being put towards upgrades and renovation in March. It's not an "appreciation play," I simply am just putting it off until I have time. POST renovation, rents in a 3br/1ba in the area fetch $2200-$2400, and we're talking new kitchen, bathroom, water heater, windows, so A) My capex expense category is small, as are repairs and maintenance B) While still saving for vacancy, NOT worried about getting this unit rented C) Homes here do appreciate quite substantially but I am not taking that into consideration, I'm simply working on the forced appreciated through updates and fixes.

I will post a big post-deal analysis with photos once it's all done. Good luck with things on your end,

@Christopher O'Brien I have confirmation from an officer at Section 8 that this property can be rented between $2000-$2100 in the condition it is in now, prior to upgrades. I'm holding off on doing any updates and starting eviction process until early spring as I have a wedding I'm currently planning for December and will not have the time to juggle both. It's going to cashflow around $6k per year after the rehab / refinance is done, depending on what kind of rate I can get.