All Forum Posts by: David Chappell
David Chappell has started 12 posts and replied 162 times.
Post: Purchased 2 properties, need help refinancing

- Austin, TX
- Posts 164
- Votes 107
Curious to see if anyone else had any feedback?
Post: Is this deal too good to be true?

- Austin, TX
- Posts 164
- Votes 107
@Aseel Yerunkar nice save! Good to see you found that out before it was too late
Post: Is this deal too good to be true?

- Austin, TX
- Posts 164
- Votes 107
Originally posted by @Aseel Yerunkar:
@Amy Aziz yeah I agree. Although I was sent the pics and while it definitely looks trashed, I didn’t see any obvious signs of structural damage. I guess I’ll wait for a boots on the ground feedback and then all this is confirmed I’ll proceed with an contingency offer!
How did this turn out? Did you purchase?
Post: Purchased 2 properties, need help refinancing

- Austin, TX
- Posts 164
- Votes 107
Hi Aseel! Thanks for the kind word. Im pretty surprised at myself for taking such quick action on the second property, but Im definitely glad I did. The closing is being delayed a little bit but I am excited for the potential. To answer a few of your concerns, I will double check with regions on the fees of everything. Im not too worried about the high interest rate since I only plan on having it for 4-5 months. For the prepayment, I did confirm with the HML. It's actually the wholesaler that I am buying the property from that is lending me the money, and he wants his money back as quick as I can pay him back :)
I am just hearing so many conflicting things from the banks. I wish I would have put the rehab costs on the settlement statement for the first property so I could get my $$ back quicker.
Thanks for your input!
Post: Purchased 2 properties, need help refinancing

- Austin, TX
- Posts 164
- Votes 107
Hi everyone! I hope the info below is enough to get started. I got tired of reading and took action, found a second deal a little quicker than I thought now I am trying to find out the best way to get the cash back and start again! Thank you so much for the help everyone.
Your goals and story: I have two properties. Property 1 purchased on 6/11/20 and Property 2 will be closed in the next few weeks hopefully. I have 2 main goal. For #2, I hope to refinance that as quick as possible to pay the hard money lender back their 80%. For that property I have applied for an loan at regions that will pay 70% LTV with no closing costs and a 15 yr term with zero seasoning requirements at around 6%. Since there are no closing costs, I was thinking I get that loan to pay the HML loan back and then refinance again once it hits the 6 month mark and I am able to get a 30yr term at 75% of ARV. The strategy is to have the longest terms possible on all my properties to maximize cash flow.
For property #1, that was funded using my HELOC which I can make interest only payments on. I was thinking I could wait the 6 moths for that to fully season and get a 30yr 75% LTV loan and get all of my cash back. But that means I wouldnt have cash to purchase another property for another 5 months or so. I guess another option would be to repeat the same Regions Bank refi on this property as well to free the cash up to make another purchase and then refi again in December.
I have looked into commercial lending and these properties wont cash flow very much using the 15/20 yr terms they offer, or at least the ones I have spoke to.
The overall goal is to pay cash (from HELOC) for properties and then refi them into 30 yrs for as close to ARV as possible and as fast as possible :) I know it's a tall order in this climate. BUT, with all of that said, am I going about this the right way?
Type of property: 2 SFHs
Location of property: Birmingham, AL
Purpose of financing: rate/term refinance, possible cash out refi
Type of financing sought: fannie/freddie, 30 yr rate term refi
Current or prior ownership of real estate: currently own 1 primary residence and 1 investment SFH, closing on 2nd investment SFH in the next 30 days
Occupancy: investment with soon to be traditional long term leases
Value of property at present and/or your offer price: Property 1: $63,500 purchase price + $14k rehab costs (not included as a line item on settlement statement) Property 2: $105k purchase price + $5k rehab costs (added as line item on settlement statement)
After repair value: Property 1: $115k Property 2: $145k
Anticipated or actual appraisal issues: none hopefully
Current rents per month: TBD for both properties
Fair market rents per month: Property 1: $1k Property 2: $1400
Down payment or equity: Property 1: paid for property + rehab using funds from HELOC on primary residence. Property 2: hard money loan (7 month interest only) for 80% of property, down payment + rehab paid for with funds from HELOC on primary residence.
Source of down payment funds, if applicable: see above
Income Source: Salaried/hourly W2
Gross monthly income (optional): $12k
Monthly debt obligations appearing on credit report, plus (if applicable) personal rent and alimony/child support/etc: $2k
FICO: 760+
Credit issues: none
Additional details:
Post: Market Analysis Down to Zip Code

- Austin, TX
- Posts 164
- Votes 107
Originally posted by @Dominique Ross:
@David Chappell thank you for that. That is the 1st time I have heard of that and i will definitely look into it. I have heard some many things about the TX market and high taxes. I am sure that forces you to use a certain level of creativity.
Yep, definitely, thats why I'm investing out of state :) Property taxes and insurance in my area make it hard to find cashflowing properties under my strategy.
Post: Market Analysis Down to Zip Code

- Austin, TX
- Posts 164
- Votes 107
@Dominique Ross when I was researching my market I paid for a month subscription of neighborhood scout and spent about 20 hours inputting all of the micro neighborhoods into a spreadsheet and recording their metrics. It has helped a ton in deciding where to buy.
Post: BRRRR in Birmingham

- Austin, TX
- Posts 164
- Votes 107
@Bruce Glenn hi Bruce, I sent you a private message early last night. I am about to be in the refinance stages of my process and I would like to get some tips on how to get the highest appraisal possible. Any tips you could give me would be greatly appreciated, thanks!
Post: BRRRR “refinance” NEED HELP

- Austin, TX
- Posts 164
- Votes 107
Hopefully not hijacking this thread, but if you use a HELOC from your primary residence, is that considered a cash purchase?
Post: BRRRR in Birmingham

- Austin, TX
- Posts 164
- Votes 107
Nice, congrats! Any idea on who you are going to use to refi? Im having some trouble finding a bank that will give a decent rate AND let me refi before 6 months.