All Forum Posts by: Jill Haselman

Bought a 4-Unit ($520K), gut renovated with my cash, fully occupied, furnished vacation/short-term rentals (with a waiting list).  Here is the property

Booming area of Delray Beach, FL in best location possible.  Cash flow is incredible, as predicted.  Recent news article refers to my street and the neighborhood it's in as "the next hot spot" and that "land prices have doubled in the last 12 mos" (they have).

Seeking a cash-out refinance ($700K) and all numbers look great, BUT lenders and Appraisers don't have an identical comp (that's why it's the hottest little boutique spot in town... duh), so they are stuck and don't know how to value the asset or the business or which way to go. When will banks and lenders understand actual markets and investments vs. using outdated generic formulas that don't fit a specific deal?

Issues:

• 4-Units vs. 5+, so it's "Residential" vs. Commercial, but doesn't operate as residential, nor should it.
• Short-term leases (with 11 mos history) vs. annual leases.  Bank statements to prove the income.  I would make pennies on the dollar with annual leases  AND people with annual leases can lose their job or leave overnight, so where is the security in that model?  Q1 of this year had average gross monthly income exceeding $30K/month!
• No current identical comparables- that's why it's such a good investment. Two strong comps under contract but not closed yet for $1.25M and $1.4M. Neither renovated. Closing dates are unknown per their Agents, largely because the area is such as massive building zone and they are held up in permitting. SFR being built across the street for $1M+. Shacks (tear downs) that were listed 1.5 years ago at $450K are now listed for $900K just for their lots. It's unreal, but I can't get an Appraiser who "gets it".

I need to refi my HML, which is already on an extension, and get my cash back out. I have already lost two other deals in this hot area because I have my hands tied.

I'm also not new to real estate investing and have great credit.

Why is this such a challenge?

@PeterPhilando I have done a few So FL deals and have had nightmare experiences, but one excellent experience. Sandra Puerta (Master Contractors, LLC) is a GC and Architect, her spouse is a GC too and focuses on roofing, but she and her team do it all. She is the only person I will use going forward. I have no affiliation to her; just a solid, honest referral and hopefully it will save your soul and frustrations. Won't let me post a cell or email here for some ridiculous reason, but I'm sure you can Google her.

www.lavidadelray.com.  Two small buildings with a pool in the middle.  Each unit is approx 500sf with the total being just shy of 2000sf.

Just renovated a four-unit MF that now has a value somewhere around $1M in Delray Beach, FL.  I'm getting insurance quotes of $9600/year.  It's not owner occupied and does have a very small pool.  Is this normal?

Doing a cash-out refi on a 4-Unit that has completed a gut renovation. I'm working with a mortgage broker that I very much like working with, but these terms strike me mediocre at best. I have a strong track record, great credit, funded the rehab personally, and I'm showing >1.2x DSCR. It's adjustable, but only UP? Prepayment penalty?

Thoughts?

Terms:  

@Paul DeSilva I am in the midst of doing the exact same thing, but with a 4-unit in Delray Beach, FL.  Just waiting to refinance- who funded your refi?

Perspective? Purchased a 4-Unit in Delray Beach, FL last July with HM (Lending On- they have been excellent) $520K pp w/25% down- gut rehab with my own cash- now a weekly vaca rental/short term stay lux compound (www.lavidadelray.com). ARV currently >$1M based on comps and knowing the market.

Opened May 2018-- Despite being off season, already have solid income trending and future bookings.  

My goal is to cash out refinance to recoup my cash investment and replicate the process or go bigger into 5+ MF.

Suggestions for financing?

Buy value-based deals-- it's all about the deal--and have a strategy (BRRR or Flip or ?).

$75K+

My Vacation Rental- Selling to 1031 and distribute equity in FL