All Forum Posts by: Cory Starkey

Thanks Bob! 

Hi Bob,

I appreciate the tongue in cheek illustration, but some context around that would be helpful. Are you suggesting that it’s very challenging to find any cash flowing properties in the areas you referenced, because of these unexpected fees? Or just that inexperienced investors continue to see lower than expected returns, although still being reasonable? 

If I give you a stylized example, of a house purchased all-in for $75K including rehab, expected to be rented for $1K, what might an invester pay for these fees? 
Of course there are the POS violations but these would presumably be addressed in the rehab. What other fees might an investor expect?

Thank you for your insight!

Cory

I’m an avid listener and follower of Bigger Pockets, and want to tap the forums for some advice! I’m a new real estate investor in the Cleveland area and have a couple general and area specific lending questions.

1. Are investors in Cleveland having success doing cash out refinances following a cash purchase of a single family rental property? If so, is a 70% LTV a fair expectation?
2. What do banks use to determine house value for a cash out refinance? While I know some lenders will use appraisal value, I’ve heard others will use purchase price plus renovation cost, or a valuation based on the income the rental generates.
3. Is a 6-month period after purchase a fair expectation to be able to refinance? I’ve heard it could be as little as 3-months.
4. What is the minimal loan amount or condition of the property if I do decide to use a mortgage to purchase the house?
5. If any investors know any lenders that you would be willing to refer me to, that would also be greatly appreciated.

Thank you in advance!