All Forum Posts by: Logan Turner

@Kenneth Garrett

I've tried 8 local banks and have seem to get the same terms at 15 year am. I would love the 25 year and 5-6 percent! 

Property rents for $1600  so it can support a 15 year note but I'd prefer the extra cash flow. 

Should I reach out to local banks in other nearby metros? 

Hi, 

I have a rental property in Texas with a 75k private loan. Property is valued at 145k. I'm looking to do a cash out refinance on the property. It is currently in my LLC and all the lending choices I have come across so far have been kinda crap compared to conventional. Best choice so far is 80% LTV, 15 year am, adjusts every 5 years at 6.5%.

Should I transfer this property into my name and get conventional? (I'm not near the limit and would easily qualify with DTI). Are there banks out there that don't require a seasoning period, or one less than 6 months, since my private loan is due in 5 - 6 months.

Also, what is the best way to transfer title to myself? warranty deed, quit claim deed? Can I do this on my own or do I need an attorney or title company?  All in West Texas. Any lenders in the state I would love to chat. I've spoken with 8 banks locally so far. 

congrats on the BRRR. Market is very competitive it appears. Super slim margins, but if you can float it, should be worth a lot more in the long term. Factoring in PM, maintenance, vacancy and cap ex, may have negative cash flow until rents can catch up. Maintenance and cap ex should probably be low though since you guys gutted the place.

The rehab looks really good. 

Is your all in counting points and interest paid to HML? If so what were the rates? <4k for 190k loan is amazing

What are expected rents? I'd be curious to see what you will get an do some calculations on it. But if you truly average 100 a month I would pass. Your cash on cash return would be too low. I wouldn't count on equity, as it gives u no return. If you have 3 rentals in Lubbock maybe diversify into DFW? Or another market. Can you substantiate "massive potential"? Not saying it doesn't, but let's let numbers and trends convince us, not emotional statements.

Matt R. I'd love to see what these reports showed for 2006-2008.

John D. Great info man. Read your bio. Very Interesting. I'm traveling along a similar path as you, but much earlier in the path. What is your take on short term rentals in the San Diego county or Temecula? Are you still purchasing places around Coachella? What's your vacancy rate (based on days In the month) for your current houses?

@Nick Vought 

This is how BRRR works. You buy a house all cash. You put in 10 percent, hard money pays 90 % of our Purchase price. You then pay between 0-20 percent of the Rehab with your own money and hard money covers the rest. After the property has seasoned, meaning you've owned it for 6-12 months, you can do a cash out refinance. Some lenders may require less time, especially if commercial or portfolio loan.

recent example of what I am finishing. 3/2 1200 sq ft house. Purchase price 51k, rehab 50k, interest on 75k private loan 7k, holding costs 1k. I'm all in for 51+50+7+1= 109k. 

House appraised for 147k. Lender will allow 75 percent LTV. That equals $110,250. 75,000 goes to private lender 30,250 goes to me minus loan origination fees and appraisal fee.

Recap of the 109k, 75 came from private money. 34k from me. But I am able to refinance the house and take out 110k which puts me at 0 dollars in. Maybe even come out a couple hundred bucks. 

Rent will be 1600-1800 and will leave me with a conservative cash flow of 500-700 dollars. (548 for mortgage + interest, 85 insurance, 190 taxes, 150 maintenance, 160 management fee- which I currently self manage)

Works better for cash purchases as they sell at a discount because the house can't get financing without serious work done to it. 

@Dave Foster thanks for the response. 

I sold the house to the current owners 7 months ago and have had the note for that period of time.   

So really my only options are to hold the note, or sell and pay taxes on my gain. Am I correct?

So I have a question for some smart people out there. I own a note (seller financing to a homeowner) and I'm interested in selling my note on a discount and then with the proceeds performing a 1031 exchange into a cash purchase on a rental house. Is this possible? Is a note purchasing a property a like kind exchange? Second question: what if I sell my note, and use the money to purchase the note that is on one of my rentals? Would this qualify? I own the note in my name but the rental is in my LLC. Thanks everyone! Looking for Opinions not legal advice.

Yes