All Forum Posts by: Daniel Hollar

See response above. New to the forums and didn’t realize could do a direct response until after I posted. 

The house itself is livable. The property has a 30’ x 50’ red steel workshop on it which has its own septic. GA Power subcontractor went onto the property with trucks and skid steers. The trucks broke all of the drainage pipes under the drive way, they are still able to allow water to flow but the edges of the pipes are sharp so if tire hit it the wrong way then it may put a hole in tire of a vehicle. They also parked their large truck behind the building overnight when it rained and it got stuck on top of the water/sewage lines coming out of the building. They then proceeded to use two skid steers to pull it out which tore up the lawn beside the building.  Water is not able to flow to the septic tank from the building, I am assuming due to crushed pipes. 

We had a lease for a tenant to move in the within the next week for $1900/month.  But due to the issues the tenant did not move in. The company has already agreed to cover the lost rent as well as fix the damage but they are “conducting their investigation” so no actions have been taken to correct the issue yet. 

I need to pull cash out of a property. I own one free and clear(around 425K). Which currently does not have a renter due to Power company messing up the yard and sewage system. Primary has around 300K equity, and different rental (has renter) only about 50k equity (about 70% LTV). I want to pull cash out to consolidate debt and fund another property (Not listed above due to being in LLC) I just finished renovating until it is able to fund its self. I need about 150K cash out but my DTI is not able to support doing a HELOC (at least not enough to warrant doing one).

What is my best option to get at least 150K cash out? 

1.Try to DSCR the free and clear property?

2. Get Hard money loan to pay off debts while I get HELOC either on Free and Clear

2a. or the primary 

3. Other….

I am new to this as well so take this for what it is worth. I would assume that you are doing a cash out refinance if that is the case, I would continue with it since the property would still cash flow or at least break even. And you can take the extra funds from the refinance to put a down payment/rehab on another property. I recommend to never sale unless you have too. 

House was built in 1979 currently a 3/3 SFH and a 1/1 apartment. It has had many self done additions over the years so going to take about 250K to do the remodel.When all said and done will be a mostly all new 3/3 plus 1/1 in-law suite, and two apartments 1/1 and 2/2. It should cash flow between 2-3K+ a month. ARV somewhere around 1.1M.

I currently do not have a loan against this property. 

What is best option to fund: 

30yr 400K fixed rate loan with about 4% interest (250K reno and 150k to make payments until we get renters) 

or 

HELOC still 400k but with floating interest initially about 3% (10draw/20pay)

Thoughts?

Thank you for your response. I didn't know RMs were a thing. This does sound more what I am looking for with this project.  

 My wife and I recently inherited a property in ATL that has been sitting vacant for about 3yrs. (This will be our 1st rental property) The property currently has a 3 bed 3 bath house with an attached barn/storage workshop, and a 1 bed/1 bath above the barn.  The house has had many self (non professional) add-ons since it was built in the 70's to include a sauna and hot tube in the master bath area (originally a 1 bed 1 bath I believe). Part of the renovation is due to the hot tube not being drained before the property sat vacant for the 3+ years (now we have mold in master bath, master bed and basement). 

I plan on turning the barn into a 2 bed/ 1 bath or 3 /1  depending on sqft. And turn the current 1 bed/1 bath apartment into a 2 bed /1 bath (both are same sqft (Guessing about 1100 sqft)

Now a few questions:

Does anyone have any recommendations for a General contractor in the ATL/Brookhaven area?

Should I turn the basement (approx. 1000 sqft I'm guessing) in to an in-law suit, close off to create another 1/2 bed 1 bath unit, leave as pretty closed off basement, or leave as basement and just open it up?

Any thoughts will be helpful.