All Forum Posts by: Daniel Hartz

Thanks for the response. I was under the impression that I would still need 20% down for DSCR even if I owned the property. This is extremely useful intell. Thank you.

Thanks Chris, that option has been looming for a bit. 

How would you refinance an investment property in Texas?

One of my investment properties in El Paso is a SFH currently renting for $1,100. After my P.M. costs I collect $940 or so/month. 

The balance on my bridge loan is $120,000. The last appraisal from September of 2023 was before it had a tenant and came in at $165,000. 

My bridge rate is 10% and results in a $1,500/month PITI payment.

The negative cash flow stings but is worth it for the equity. I think there's a path to refinance that would flip me into positive cash flow, but I'm coming up short on ideas. 

I really don't have the $23k down payment I'd need for a DSCR, and Texas wont let me HELOC the equity out of my other rentals.

With my $1,100 monthly revenue, my 700 FICO, and my (likely) $55,000 in equity - what kind of options would I have to refi.? 

I'm looking for a source for a business line of credit: I have fair (560-640) credit, but also quite a bit of equity and rental income history across two properties. 

So I've been slowly working the rehab on an investment property purchased back in 2020 in El Paso. Formed an LLC to purchase the property using a hard money loan (about $60k) and I'm still paying the mortgage and rehab expenses from my personal funds. These expenses have dropped my personal credit. I owe $55k and expect it to appraise around $110. My property manager expects $800-$100 to be a reasonable rent to charge.

The property is in it's final $2-3k worth of rehab before it's ready for a tenant. My property manager has managed my other residential rental property, which has two units, since 2019. The other property was originally purchased with a VA loan and has had full occupancy since June. Equity in this property is about $70k.

I feel like I have enough equity and experience here to get some kind of HELOC or BLOC, cash-out refi isn't working due to my personal credit and stupid high rates. Am I completely adrift here? I can practically see the cash flow once I get this place finally fixed, but I've run dry on personal funds to keep it afloat.

Thanks for the response, I ended up creating the LLC simply because I plan on continued growth. Eventually assets will go to the LLC

So I have a very specific case and after extended research I am still not sure if forming an LLC for my rental property is right for me. Some background: I purchased my first home using VA in El Paso Texas this last December. The property has a second, detached in-law unit with its own yard. My intent with buying the property is to hold it, rent out the second unit until I am stationed somewhere new (likely summer of 2020), and then rent the main house. My question is, should I form an LLC and open a business account for collecting rent and keeping rental expenses/income separate? I understand that I will not be able to transfer ownership to the LLC for some time due to it being a VA loan, so the LLC will not provide much in the way of liability protection. My confusion, is to whether the rent payments to an LLC would be worth the hassle for the tax benefits. My goal is to continue to buy investment properties in the future for rental income. I appreciate the input, I'm very new to real estate investment and you all seem like experts.