All Forum Posts by: Cody Barna

@Tyler Mutch nice, that should leave you enough equity to fund another deal.

@Tyler Mutch it sounds like you have the right idea, if your plan is to continue using traditional financing then finding a higher paying W-2 job makes the most sense. Considering the majority of your debt is associated with mortgages, trying to reduce smaller debts such as a small car payment, low credit card balances, etc. probably wouldn't make a huge difference. If you don't mind me asking, what do you currently do for work?

@Tyler Mutch congrats! Any idea what the ARV will be?

@Mark Przybysz What kind of condition are the properties typically in?

@William P. congrats! Working two jobs and going to school, that definitely takes a strong mindset. Have you had the property appraised since completing the renovations?

@Khizer Husain I'm not very familiar with it, but I believe some lenders do offer cash flow loans. How many units is this property?

@Kenneth Williams there's nothing wrong with asking questions, that's how we all learn. Using hard money is typically less desirable than conventional bank financing, first because the fees are much higher and the terms are a lot shorter. However there's certain circumstancing where it makes sense such as a BRRRR, flip, etc. basically if the property is in bad condition a bank won't finance it. (There's some exceptions.) For a cash out refinance the bank sends an appraiser to the property to determine the value. They'll then typically give you 70-80% of the LTV (Loan to Value), for example if you purchased a property for $80k and it appraises for $100k, the bank will write you a check for $70-80k. It can be an extremely powerful strategy when doing what is referred to as BRRRR (Buy Rehab Rent Refinance Repeat) If it's a great deal you can virtually pull all of your initial investment back out and own a cash flowing rental property for no money out of pocket.

@Kenneth Williams I'm trying to determine exactly what you're asking, you won't be able to use that initial equity before purchasing the property. However lets say the property is worth $100k and you purchase it for $80k using hard money, you could refinance through a bank and pull the equity out to pay the HML back. (As long as the property appraises for high enough.)

@Zach Simpson I would say the biggest issue is not being able to drive by and visit the property every now and then. That becomes much more challenging when it requires significant travel, you're putting a lot of trust in the team you hire when you give them 100% of the responsibility. Personally I would find it hard to believe that a PM is screening tenants at the same level I would be. If you're new to investing it's extremely helpful to learn the process first hand, not to mention you're typically less familiar with the local laws, market and economic conditions.

@Ralph Ace I believe it's classified as anything below the ground level, however when doing a CMA for example the basement is not included in the total SQFT of the home because it's not considered part of the livable space. On top of that in order for a basement to be considered a bedroom it needs to have a closet and an egress window.