All Forum Posts by: Darren Budahn

If you want to expand the portfolio I would definitely use leverage in your situation. Based on the limited information you gave, the SFR looks it would produce a higher return. But as was mentioned above, I would never be looking to pay retail for any property. Just curious, where are you finding $50,000 SFR's that rent for $1,400?

Unless you think you can have it appraise for around 100k after doing 15k in rehab, I wouldn't try and use the BRRRR strategy. Otherwise you won't get all your money back--if that's your goal. If there's no major issues with the property, just buy with conventional financing and once the tenants move out then rehab the units. You could then refinance. It all depends on your goals and when you need the cash back.

Your purchase price, closing costs, and repairs are higher than your ARV. I wouldn't buy it.

If your contract said you should get pro rated rents I would be contacting the title company. You should have received this money at closing. If you're expecting the seller to pay you after closing I think your chances of getting paid are slim to none

Yes, I do have a few commercial/portfolio loans myself.  @Scott S. gave a good overview of what you can expect as far as rate and terms, but if you have any questions feel free to reach out. 

For a five plex you can't get conventional financing. You are going to need a commercial loan.

James Bertrand I don't think refinancing in your scenario is going to be a viable option. If the property is already rehabbed there likely won't be enough equity to refinance in a year. You could pay down the HELOC with cash flow possibly and unless your property appreciates spectacularly in 12 months, refinancing won't work

If you are planning on getting an FHA loan you need to live in the property for 1 year.

You should be able to find a local bank or credit union that will lend around 90-95% LTV. Ask them if they have interest only payments or if a minimum amount of the balance needs to be paid monthly.

I would look into hard money if you don't have the cash yourself.