All Forum Posts by: Daniel Levine

I am struggling to refinance my triplex because it is in an llc. I own the triplex out right and believe it will appraise around 230,000. It rents for 2275.00 and the NOI is around 1100.00 per month. I'm looking for 130,000k to get my original investment out and to continue investing. Banks are reluctant because of the llc. I'm considering a personal guaranty but would rather not go that way. Any suggestions?

I recently saw a post about someone purchasing the houses in their name then after the refinancing they changed the deed into a trust. That might work on my next investment. Does anyone have experience with this as well? 

Hi All,

I am trying to close on my first rental property. I have some concerns and could use your advice. The purchase price is 62,000. Rehab costs are 27,000. ARV is 130K. With some holding costs, closing costs, ect I will be all in around 100k. It is a triplex currently not rented. The anticipated NOI is $1,680.00. I have already talked to several banks and I found one that will lend me 75%LTV on a 10-1 Arm at 5%, with no balloon payments amortized over 20 years.

My plan was to use a HELOC I have on my personal residence to fund the purchase price and rehab costs get the house fixed up, rented, then do a cash out. My concern is that they won't give me the loan when we are all said and done and I will have my cash tied up in this house.

After that long winded approach I am looking for advice on what banks look for when it comes to personal finances, credit score, cap rate, collateral ect. I am currently in the process of closing on another house a duplex as the loan application is being reviewed. Will that effect my ability to get a second loan. My concern is that they we say my debt to credit is no good. PS my personal credit score is around 790. Any thoughts.

Hi all, I am struggling with the analysis on this one. I am looking at purchasing 3 multi families from the same owner. The only way the deal will work is if I purchase all 3. My biggest concern is that two of the properties (church st and Center st) are located in an area that may never see any appreciation, and there is no easy exit strategy. Multi families are not desirable and only investors will purchase them from me. I am afraid that leaves me with few options for exiting quickly if needed. However from a cash flow perspective they are very good. I will try and lay it out below so you can give me your feed back. Thanks in advance.

Foordmore Rd house: Triplex only one unit is completed 2 others need finish work

Center St House: duplex fully rented needs new roof and some minor plumbing work

Church St house: Unoccupied, needs total rehab but has 3 units:

How do I determine a reasonable discount rate? Can I use the cap rate? I am trying to calculate the IRR on a few different investment options. Thanks.

I know bootstrapping your first few deals is hard and people always want to save a penny upfront. However to speed the process up you may take the 9k and hire a contractor to finish your live and flip quickly so you can move onto your next deal.

As for quitting your job, no good things come with out sacrifice, patience, determination, and hard work. I want out of my job so bad, but by sticking it out I have much more money to invest and my time line is shrinking because of it. Wealth is not built overnight and because you have started at a young age you are ahead of most, but leverage your steady income to purchase more properties in less time. 

always shop around...

sound interesting. Send me a colleague request and let's see how it goes.

save everything you can, by a duplex live in half rent out the other. Once you have your next down payment saved move out of the duplex and do it again. Also look at Cash out Refi, or heloc loans on your current properties equity. The rates are so low right now you can use that cash to purchase your next property. You are young and if you stay employee live below your means, save every penny and purchase properties properly you can get out of the 9-5. Maybe even before you hit 30.

My first goal is to build a cash flow portfolio, then I will look at appreciation positions. Thanks for your thoughts it helps validate what I am doing.

would you purchase a house that can reliably produce a 500.00 cash flow if there was little chance for any meaningful appreciation? A 40k house with 4 units, section 8, rents for 2000 per month. After expenses including PITI, repairs, vacancies, and some saving for cap x, it cash flows 500.00 per month. Any thoughts?