All Forum Posts by: Bill Couture

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Plainfield.

Purchase price: $135,000
Cash invested: $60,000
Sale price: $380,000

Four-plex purchased with seller-financing. Classic BRRRR deal where deferred maintenance was addressed, rents were increased and capex was completed (new Mitsubishi mini-splits, new hybrid hot-water heaters and new roof). Decided to sell off-market to a local first-time home buyer and the sale proceeds will be rolled into a new self-storage development.

Hi Sadie. Yes, you can call me at eight six zero three six seven seven nine zero seven

Hi Sadie. Is it possible to refinance a private/seller-financed mortgage into an owner-occupied FHA mortgage? It sounds like your goal is to use your HELOC's short-term but to not be stuck with those monthly payments into the indefinite future. I'd recommend finding a property that the BRRRR method will work on where you'll obtain enough funds in a cash-out refinance into an FHA mortgage to pay off the HELOC's that you used for part of the purchase and the assumed renovations. You can use a private/seller-financed mortgage to purchase your next property.

I'm doing this right now on the four-family at 45-51 Aldrich Ave. Purchased for $195,000 in May 2021 and used a hard money lender to finance $152,000 of the purchase. Spent $20,000 in renovations and will be closing on the cash-out refinance at the end of this month (6 months since purchase). Used cash for the down payment and renovations but could've used a HELOC to achieve the same results.

Appraised value is $265,000 and getting a 30 year fixed mortgage at 3.875% for $185,500. It's not a perfect BRRRR where I'll get all of my down payment and renovation funds back but it's pretty close!

@Laci White Glad to see this thread is still alive! Since asking the question five years ago, I've implemented Buildium and haven't mailed a rent payment receipt in four years. Technology is a wonderful thing for landlords.

@Sarah Present   I spoke with an SBA lender last week about the prospect of using a 504 loan to purchase a vacation cabin (2 single family homes and 10 cabins on a lake) property similar to what you're describing and they said that YES, they COULD finance the the purchase with as little as 10% down. The 51% owner-occupied requirement would be met as long as your real estate rental business rents the cabins on a short-term basis (less than 30 consecutive days to each vacationer). You couldn't purchase the property and run it like a multi-family with permanent, long-term leases in effect. It would need to stay as an AirBnB property which is obviously your intention.

I have an SBA 504 loan on a self-storage facility that I recently purchased in Connecticut and I'm happy to discuss my experiences with the loan program and process.

Hi Everyone. I'm looking at a lakefront cabin property in Connecticut that is currently only rented on a seasonal basis (May-September). Has anyone either upgraded their own cabin(s) or ran the numbers on the costs to improve a ~500 - 700 SF cabin with insulation, sheetrock and heat so they can be rented year round?

Jaysen, Thanks for the shout out. I'm happy to look at deals east of the CT river. -Bill, Commercial Loan Officer, Jewett City Savings Bank 

Hi Leslie. You'd be hard-pressed to find a conventional commercial lender (bank or credit union) that will offer fixed rates over 10 years. With that said, I can't offer a 20 year fixed rate. We typically do 5 year adjustable rate mortgages with a fully-amortizing 20 year term. Thanks

Hi Luis. I've worked with a multitude of BP investors to do exactly what you're looking to do, refinance a pool of investment properties into a single commercial mortgage. The commercial rates have been rapidly declining due to the Coronavirus scare. For a cash-out refinanced on seasoned (1 year or greater of ownership), our interest rate today is 4.10% for a 5 year adjustable rate commercial mortgage with a 20 year loan term and amortization schedule. I've done a few deals for New Britain investors. Feel free to give me a call at Jewett City Savings Bank in Eastern CT.

Hey Rick. Not sure if I mentioned in previous conversations but I own and self-manage a 13 unit rooming house in Eastern CT. Most days, the place is awesome and provides an incredible amount of cash-flow. Other days, I would pay someone to take it off my hands. Feel free to give me a call. Thanks