All Forum Posts by: Daniel Suarez

Thanks so much Scott. I actually had an ELC against my stocks, but because the prices kept on dropping and min balance required, i had to close it. 

While reading what you're saying, I realized a couple of things as well. The rate is 6.25%, but I would be paying $7k in closing costs, which is about 12 points of the loan I would be getting, and also that the rest of my original loan would be increasing by more than 2 points by doing this.

I don't really like to sell stocks either so that is that. I definitely have to think harder on it. I could always replenish the stocks with the extra cashflow I get every month. 

I have never done a HELOC or a second mortgage, I can definitely take that into consideration

Hey All, 

I purchased a home about a year ago for around $200k, I put close to $90k in fixes and did a historical appraisal that came up to $410k. I borrowed $70k from family and was planning to return it after the refinance, but the bank refinance came back at $330k which is much lower than what I expected. So my options are these. 

Cash-out-refi the property. That would give me about $54k to pay, the loan and I would sell stocks to cover the difference. The problem is that my original loan is at 3.99% and the new one would be at 6.25% (they only allow me to get 60%) So my monthly mortgage would go from $1207 to $1715, that's almost a $500 loss in cashflow. 

My other option would be to not refinance and instead sell stocks. I would sell about half of united healthcare that in reality didn't do bad, so I wouldn't be losing there and losing stocks the other half for tax purposes. 

I know this can be a very "I can't decide for you situation" but I would love to hear what would you do in my position. A couple of notes about myself. I'm a high-income W2 and I expect this house to value for a lot higher in the next couple of years. Thanks in advance. 

Hey All, 

I'm buying a property with another partner who lives outside of the country. We're planning to go in 40% me and 60% them. I am in charge of managing, getting the deal, getting the credit under my name, getting tenants, keeping track of rents and they will be just passive. i was planning to charge them an extra 10% so even though we go 40/60. The cashflows and ownership will be 50/50. Does that sound fair? 

Also, with cashflows it is straight forward, but how about the equity on the property? Would you keep that 50/50? or is it fairer to do 60/40? 

Thanks in advance. 

Hi All, 

I have a multi-family under an LLC with my partner that we plan to sell and 1031 exchange for another bigger multifamily. The other LLC is much more expensive and we plan to join forces with another foreign national LLC. Since we're doing a 1031 exchange, the new property would also be under the original LLC, not including the foreign nationals in the title.

Our plan was to buy the property with the original LLC and get a commercial loan with the original LLC (the title and credit will be under me and my originals partner's LLC) Once we do that we plan to form a Joint Venture where all of the income and proceeds of this property will live and it will include the foreign national members.

The reason we would do that is because getting credit with foreign nationals is very hard, and the new property needs the same owners needed originally. I would love to hear some thoughts on this. Thanks so much in advance. 

@Russell Brazil are you renting that Canton one by the room? Also, was it a chap Reno? Would you mind sharing some numbers?

@Ken Chud Where do you get those numbers? If he refinanced his 200k, his new mortgage is $810 pm + 60 ins + 200 taxes so $1060 not what you mentioned. Yeah the $2000 a month sounds realistic, maybe a bit more with section 8. 

Hello All, 

Wanted to see if anyone else went through the same experience. I'm looking at buying an 9 plex in Maryland for about $2m with another partner. He would put 75% of the downpayment and I would put 25, making us 75/25. The problem is that he is not a US citizen or even lives in the US and I'm having trouble finding commercial lenders that would lend to us. He has an LLC formed in Florida and Tax id, but no US income or anything yet. Has anyone done anything similar?

Thanks in advanced. 

@Brandon that's exactly what I need to do, I need to take pictures of everthing before and after and send them a reminder before they leave so they know, that's a great idea and something i've been slacking on. The inspection is also something I need to do more often. In your inspections, do you check the cleaness of the house? Can you point out if the house is dirty? or do they have the right to be dirty if they want? Also what is normal dirtiness vs not?

@Theresa Harris, that is an excellent idea about the carpet replacement and also the same would apply for painting. I'll definitely start doing that

Hey All, 

These is kind of a 2 step problem. First, I had a tenant turn in the house after the lease was up and left everything in really bad conditions. Stains in walls and carpets and the house was digustingly dirty. I spent about $5k fixing it. Repainting the entire house, replacing the carpet with LVP and fixing a lot of small things and cleaning of course. She is arguing that the carpet and wall are regular tear and wear and that I should give her all her security deposit, but pet stains and dirty stains that don't come off with washing or steaming are the tenant's fault, right? 

Now the follow up question, what is your procedure when the tenant is moving out to make sure there are no security deposit issues? I'm thinking of doing a pre-walkthrough before they move out pointing out the things they need to fix and how much it would cost if they don't fix them before moving, that way they know ahead of time, any thoughts? or anyone else does something similar? or any other tips?

Current cashflow is about $750 per month. Refinanced cashflow at $165k would be $680 a month pulling out $27k. I would need to add about $30k to buy one more property that would cashflow similarly about $700 but with fewer headaches and building equity ARV would be closer to $250k.

The other option would be to sell this one and get about $70k. I would need to add about $50k to buy 2 properties each will also cashflow about $700 and build equity that i can later also cashout-refi to reinvest.