All Forum Posts by: Account Closed

@Mark Gallagher I have been researching the direct refinancing or "delayed financing" which I have seen a lot of. I am still a bit confused, though So, I purchased the house for $53k cash. The total at closing ended up being $54,270. The rehab ended up being $30k. I have not had the house appraised yet, but I am thinking it will appraise between $105-115K. So, if I was to go the delayed financing route, the only amount I would get back would be my $54,270? OR would I get back a percentage of the appraised value? What does the loan on the property get based on, the appraised value, or the original cash purchase price? Thanks for the help.

Dan

@Mark Gallagher I have heard of doing that, but I am leaning more towards getting a full 75% of the appraised value. I closed on the property March 31st and the rehab is now complete. (Finished this past Friday)

Does anybody know of/recommend investor friendly banks in PA, specifically the Lehigh Valley? I am finishing up the rehab on a project and am shooting to have it rented within the next month or so. I am looking to cash-out refinance. Thanks!

@Andrew 

@Andrew Acuna I occupy 1 unit in my 2 unit property. I will have to call the county and see what can be done. @Clint Galliano I will have to order that book next. Thanks @Colleen F.

I just finished reading "Investing in Duplexes, Triplexes and Quads" by Larry Loftis. There is a section he brings up about claiming a Homestead Exclusion for your primary residence. I have never done this. Does anybody have any experience with filing for this exclusion for the benefit of reducing your property taxes?

I just found a great article on here explaining the basis of this. @Account Closed thanks for the info. It looks like after 4 units it all turns commercial.

I am currently house-hacking a 2 unit multi-family home. Buying with little money down has been great for this deal. I am interested in purchasing something larger, more like a 5+ unit building. Can I still house hack with this in regards to obtaining traditional financing with little money down such as FHA, 5% down etc? I know you can only have one FHA loan at a time, but would love to get into a larger property with little money down. Is it possible!?? Starting my research now. . .

@Korie Apgar Good information on areas to invest. There are a lot of good areas to invest in our area, but it is amazing how local the market is even within the same city.

thanks @Steve Kontos. What do you think about the deal structure below??

Here is the deal & numbers I am working with right now. . . what do you guys think? Again, this is going to be a long term rental. I will describe a couple options I have been contemplating over the past several weeks.

Option #1: Cash purchase/Personal loan from Wells Fargo Rehab.

Purchase price $53,000 + Est. $3,000 misc. fees

Rehab $20,000-$25,000

ARV $100,000

70% cash out refinance after 6 months= $70,000 based on $100k appraisal.

Being conservative and allowing for error : $56,000 + $25,000 = $81,000. I would have $11,000 into the deal after paying off the Wells Fargo personal loan for the rehab.

Option #2: Fix and Flip hard money loan from Lima One Capital. Includes purchase price & rehab. Based on same numbers above. . .

$70,200 loan amount

$16,000 due at closing

12% interest on loan, monthly payment $722.xx

$70,000 cash out refinance @ 70% $100,000

$70,000-$70,200 loan amount from Lima = -$200 -$16,000 down payment = $16,200 into deal.

What am I missing here????

@George Taylor

Either that or use a small cash down payment for a purchase only loan then pay the rehab yourself.

George, I didn't even think of doing that. Thanks a lot for the input!