All Forum Posts by: Coley B.

I have a similar question. I have a Series LLC which holds my rental buildings. However, I'm also looking to get into fix/flips this year. I know that I can set up one series as a normal LLC for my rentals and another series as an S-Corp for my fix/flips. However, my question is this: What if I decide that I want to BRRRR instead of simply flip it right away? That would require a loan and I'd like to max out the 10 loans under Fannie (30 year fixed and lower rates) which can only be done in my personal name and not in the LLC. Then I simply quit claim deed it into my LLC once I have the loan (I know...I know...banks may call the loan but they never do). So should I buy all flips under my personal name and take out extra insurance just in case I decide to BRRRR or until I max out my Fannie 10 property limit? Then switch to buying all properties under my LLC after that? What do you guys do?

Chicago area. I have a 3 unit building with GFA and all the ductwork but no AC. I plan to install central AC in the top two floors using existing furnace/ductwork. Should I also install AC for the basement unit while I'm at it? Or is that overkill given basements are cooler and the unit will only get used in July/August?

I know the tenants could put in window AC units but given its basically ground level anyone could push those in and break in easily so I don't think that would be an option.

I'm in Chicago and I'm going through the same decision on a 2 unit HOLD property. However, the first floor is a 3/1 and the top floor is a 4/1 and about 1500-1600 sq ft each. I haven't talked to contractors yet but given I have the space to add a full bath and I figure I can charge about $400-$500/month more in rent I'm gonna go ahead and do it. I figure the build out and plumbing will be about $10k for each bathroom but I would rather have 3/2 and 4/2 both for cash flow and type of tenant (married couple / family).

With that said I also have another building all with 3/1 that I renovated with new kitchen, bath, granite, stainless, etc. not too far from this property and so many tenants came through and said "My budget is $X" so even though I priced it more I had to lower it to meet the neighborhood because it was mostly kids straight outta college who only make $X amount. I'm glad I didn't add a second bath in those units because I likely wouldn't have been able to recoup my money fast enough with rent increase.

So like someone else said, look on craigslist and see what the neighborhood is dictating for rents and that will help you decide. No sense in pricing yourself out of the neighborhood.

 Once you have found the specific item you want you simply click on it and then hit the orange button "Select from available items". This will focus on the washer/dryer closest to you based on your zip code. You'll see a list of them with different prices and locations. Wait about 30 seconds and underneath the orange "Add to cart" button a blue "Make an offer button" will suddenly popup. I don't know why there's a delay but there is. I simply lowball and then they usually meet me in the middle.

For commercial LOC, Wells Fargo allows 75% LTV on first lien position and up to 70% on second lien position. They hold my first lien so I imagine they would go up to 70% on a second lien.

What do YOU prefer - LOC or cash out refinance to pull out equity in a non-owner occupied investment property?

I have a long-term buy and hold strategy. I purchased and renovated a multi-family investment property over the last 2 years. So I want to pull out the equity to buy another property. I plan to do the same thing over and over (buy, renovate, rent, cash out, repeat). I understand the pros and cons of refi vs. LOC. I also understand the difficulty in pulling cash out. I'm simply wondering which one do YOU prefer and why (refi or LOC)?

- Looking to pull out $100-150k

- Current loan is 4% over 30 years

- Refi closing costs in Chicago are about $2k (includes appraisal)

- Wells Fargo would charge 1% on LOC loan amount plus annual fee of 0.25% (approx. $1,000 - $1,500 in closing costs plus $250-$375 annually)

I love the flexibility of the LOC and not having to pay interest until I use it. Plus since I'm simply gonna use it for a down payment on next property I would simply rinse and repeat. But with interest rates so low and my very long term buy/hold strategy should I simply refinance at a slightly higher rate (4% --> 4.5%) so I can lock in that extra cash at a low rate over the next 30 years? I'm thinking a cash out refi makes the most sense.

I use Sears Outlet because they're brand new except for a cosmetic scratch or dent that tenants don't care about. Here's what I do:

1 - Look for washer/dryer with great reviews online through sites like Home Depot, Sears, etc. I find Maytag and Whirlpool had the best entry level reviews and there's tons of reviews on other sites but not on Sears Outlet (note Sears does not own Sears Outlet)

2 - Look for that same model washer / dryer on Sears Outlet.

3 - Put an "offer" in online by using the offer button and you get it for even less than discount price. Usually they don't accept your offer but meet somewhere in the middle. You find out immediately too.

4 - Buy the appliances one at a time because after you buy the first one Sears Outlet will send you an email coupon for $20 off your next purchase. I use that coupon to buy the next appliance.

5 - Finally, if you really want to save you can buy discounted giftcards online at sites like giftcardrescue.com and save an extra 10-15% but the downside is that you have to use the giftcard otherwise your stuck with it.

I just bought 6 side-by-side washers and dryers from Sears Outlet for an investment property using this strategy. Saved a bundle!

If the sizing works I've used pre-made glass blocks with the vent built in. They come in a wavy glass and ice chips glass version too so they're very hard to see through and let a ton of light in. Plus the vents are huge and tilt either up or down while still blocking views. I've torn out the old window and mixed glass block mortar and put in new ones myself in a few hours. Something like this:

http://www.homedepot.com/p/TAFCO-WINDOWS-NailUp2-Wave-Pattern-Glass-Block-Window-NU2-3222/100660080