All Forum Posts by: Dan Sundberg

Update to this. Talked to some lenders and found one that will do this. Properties are in Sacramento, CA and lender is Mt. Diablo Lending - Ramon Von Walker. They can cash out refi on residential income properties based on Debt Service Coverage Ratio (DSCR).

Very interesting option in this case because we are adding an ADU to the property, which appraisers haven't quite figured out how to value, and a refi based on cash flow can more than double the value an ADU brings. Higher interest rate, but might make BRRRR doable in a hot CA market...

Awesome thank you for the tip Andrew, I'll check out some local groups for this info. 

Does anyone have any recommendations for a lender who will do a cash out Refi based on Cap Rate for a property with 4 or fewer units?

@Logan Krutsch - that's interesting you put it on the inside of the walls, how did that work? The house I'm looking at is Lath/Plaster, which is certainly a concern for getting into the walls.

@Eric L May - what your saying is making sense - a patchwork of wiring feels like a big question mark, and especially as we're going to split a single family into 3 units, the load on the system will be much higher than it was for the last couple decades...It might not even be able to handle that much. 

Appreciate the input everyone, I know just enough about this stuff to know when to ask people who really know. 

Thanks @Louis D. and @Sean Smith just sent you a message for those recommendations

Hey @Paul M. - did you wind up doing this? Thinking about the same thing and curious what the result was for you. 

Just got into contract on my first buy and hold out in Sacramento, CA and inspections showed some of the house was still on Knob and Tube wiring. It looks like the house would be fine without touching it, but since I'm planning to own this long term, I'd prefer to just get it all replaced while other work is being done. 

Anyone have experience with getting knob and tube replaced in California in terms of pricing or regulatory pitfalls? 

The new BP insights tool seems like it would be really useful to find this information. I've only played around with it at a surface level, but it's got a ton of good data on there.

Thanks for organizing! Will try to be there!

Sounds like a solid first deal @Dhanasekaran Ranganathan - do you have a sense of whether this will be a cash flow or an appreciation play (or mix)? I'm also looking for property in Sacramento and there seem to be opportunities for both.