All Forum Posts by: Aron Cohen

Johnny Lujan I am doing research on this matter and not sure if this applied to cottages but there was an article on bigger pockets about someone who purchased a multi family with their Fha and rented the other rooms out to cover expenses. I am not an expert nor do I know the legality of the Fha loan but if the bank is receiving their payments on time I can't imagine them pressing the issue. I wish I could be of more help. Good luck

@Cody Barrett thank you. We contracted all of our construction work out. It took a while to find the right contractor for the right price and right quality of work but after many trials we were able to do so.

@Jerry Padilla very interested I will contact you via PM

@Brent Coombs I believe we were able to pull out more than we invested due to the appraisal value. If we were to ever foreclose on the property the bank should have no problem selling the homes for the amount that was given by them. We also have a very strong cash flow that I believe helps to secure against any larger loans. 

@Steuart Wright thanks , the majority of the homes are in the northeast philly area , but we are gradually testing new zip codes trying to get familiar with their rents and appraisal values. 

@Robbie A.  yes that is correct. No problem feel free to PM if you need more info. good luck

@Robbie A. the BRRR stands for Buy , repair, rent, refinance and repeat. The homes were bought with cash (not with a bank loan/mortgage loan). Therefore there is equity in the property before you rehab and fix it up. After buying for cash we fixed the property up to the higher value of neighboring properties. The ARV (after repair value) is higher than the purchase cost and cost to repair the home. The bank will then appraise the home and give you a loan (LTV) loan to value usually 70 to 75% in which you can do the process again. I hope that that helps.

@Kevin N. we are using Valley Green Bank for commercial loans. 

@Donnell Evans the HELOC was from my primary home and the bank I used for the was First Trust Bank.

Thank you and absolutely I would love to @Ayodeji Kuponiyi

@Anthony Gatt the bank we are currently using did not have us wait the traditional seasoning period. We are getting commercial loans and are able to close within 30 days after appraised.