All Forum Posts by: Anthony White

I have a 8-plex under contract For $60k, the estimated rehab will be another $40k

The way the contract is currently written - is for $40k down and the seller will carry $20k over 3 years allowing interest only payments for 3 years with a balloon.

The 8-Plex property has 2 units occupied in month to month leases for $375. (I think updated we can get at least $400-$425 once all updates have been completed)

I have a personal HELOC with about $60k in it to at least purchase the property.

I wanted to see what would be the best way to go about this purchase.

a) Go with the contact and wait the 6 months seasoning to refi one of my other investment homes to get the cash to Rehab the entire 8-plex at once?

b) Go with a hard money lender, for the purchase and the rehab and pay a lot higher monthly and hope they rent fast to refi and pay them off?

c) Go with the hard money lender for only the purchase, use the rest of my personal HELOC for the Rehab.

Is this a good deal?

Please - educate me on if this is a good deal or not.

How does the commercial taxes factor in?

Thank you for your time!

I have a 8-plex under contract For $60k, the estimated rehab will be another $40k

The way the contract is currently written - is for $40k down and the seller will carry $20k over 3 years allowing interest only payments for 3 years with a balloon.

The 8-Plex property has 2 units occupied in month to month leases for $375. (I think updated we can get at least $400-$425 once all updates have been completed)

I wanted to see what would be the best way to go about this purchase.

a) Go with the contact and wait the 6 months seasoning to refi my other homes to get the cash to Rehab the entire 8-plex at once?

b) Go with a hard money lender, for the purchase and the rehab and pay a lot higher monthly and hope they rent fast to refi and pay them off?

c) Go with the hard money lender for only the purchase, use the rest of my personal HELOC for the Rehab.

Is this a good deal? 

Please - school me on if this is a good deal or not. 

How does the commercial taxes factor in?

@Chris Mason under the Delayed Financing Exception, does it matter what the appraised value is - because you can only take out what you paid anyway. 

OR are you saying after I buy the property for $40k and spend $2k in closing cost ($42k ALL IN) and it appraises for $65k. 

75% of $65k is $48,750 

But since I purchased the home for $42,000 - Even though the 75% is $48,750 - I can only take out the $42,000 

So basically, depend on the cashflow of the rental to retrieve the rehab costs. 

Info for a scenario... 

Say I buy a property for $40k and with closing costs of $2k. The I place $5k in rehab. Total $47k "all in"

Now I understand, that under the Delayed Financing Exception, I would say I can only use it to take out 75% of the purchase price. meaning 75% of $42k.

75% of $42k is $31,500 so now I would have a $9k balance on my original HELOC used to purchase the property and now a 15 or 30 mortgage payment on the $31,500 new "Delayed Financing Exception"

Is that correct? 

Thank you for your time!

@Chris Mason Awesome!

Using my Primary Residence HELOC to start the BRRRR process on a few rental properties - how would I use the BRRR calculator to input the information, since it is not really a Cash purchase (I still make payments on the interest on the HELOC) and its not a mortgage because I am able to buy these properties cash with the HELOC.

Any help appreciated! 

Thank you!

Please email info: [email protected] 

Thank you all for your advice!!!! I will break the new after the Holiday! Have a great 4th!

Hello All! 

I am starting out and I have my first out of state deal under contract! 

I was wondering as an out of state investor, is it best to sign with 1 exclusive realtor? 

I feel like working with multiple realtors, wholesales and sometimes even the selling agent - helps me get a feel for the different residential areas and receive tons of opinions, thoughts, history, and even biases about things. 

Thoughts? Advice?