All Forum Posts by: Douglas Gratz

Hello friends !

So I am having difficulty inputting numbers on various spread sheets due to the fact that I purchased this property with cash, put cash into it, and and refinancing to get cash out.  The tool on this website is confusing since I did it this way (paying cash first)

I bought for 91,000

Put 13,000

Total 104,000

Appraisal 238,000

I am taking 75% at 3.8 so thats 172,000

When using the calculator what do I put for purchase price, ARV, then what do I put In the finance assumption for % downpayment of purchase price?

my goal is to find out how much cash flow I will have if I take the full 75% of appraised value. This is different since I paid cash first and am confused . THANKS!

I also have a spread she where there are cost and rev assumptions and knowing the numbers above what do I put for land. building, repairs? then for financing assumptions total purchase %, owners equity %.......(this is my own spread sheet but I don't know how to input that im taking 172K out in cash and I only paid 104,000 ?)

@Hunter Vigneault thanks great input . See my last post about trying to lower two loans from 6.5% to 3.8% (refi) I would save about 100 per property (200)

I asked the underlying question bc I was not sure to take 172k or less around 130k and 200 dollars is the difference .

The numbers work, is it something a season investor would do (maybe not to cover the .200, but a move he’d consider for whatever reason )?

@Richard Crouch I use the bank. Univest

@Fred Shatzoff

Understood , makes sense. This is my job, 8 properties 12 units in 3 years , avg cash flow around 500 per door some upwards 1200.

I think I might take it all.

If I can also refi two older loans I have for 6.5 to even 4% I could save 100 a month per which will essentially cover the extra 200 payment for taking 172k 75% appraised value as opposed to a much lower number 13000

@Fred Shatzoff yeah we are working as quick as we can.  Still wondering why you say take as much as you can, id like to hear the reason behind that approach?

@Fred Shatzoff and you think these rates will go back up within the next 3-4 months ? thats my time frame Im hoping to orchestrate this all

@Fred Shatzoff can you go into more detail why this may be the better option?

and I am, its been appraised, the bank is waiting on a closing I have Friday (god willing) to pay some debts off.  But loan officer said once thats done we can get this closed 

This also entered my head. I have two duplex I pay 6.5% on the loan.  if I can refi and get them down to even 4% I would save $150 per the two ($300) which intern can cover the 1100 mortgage payment on the loan this discussion is about.

incase you didn't follow.  I have the option to take less and pay 900 month but I can take more and pay 1100 ..So if I lower those two loans, the saving can essentially go here making it quite good ?

Hello friends, I hope you are all healthy in these trying times.

So I have a refi and I know a lot of this is subjective , but I am wondering what you would do in my shoes.

Here are the facts

All in for 102,000

Appraised 238,000

Rent revived by HUd per month : $2400

If I take full amount (75%) it’ll be 172,000 with a monthlong payment including insurance and tax approx $1100.

This house is all rehabbed so I don’t foresee many maintenance expenses for some time.

I don’t have many expenses so realistically in this scenery I can guess conservatively and say I’ll cash flow 800 after all expenses (500 if so)

Would you take the whole 172k at 3.5 % and be cool with $800 cash flow as opposed taking much less and getting 1000+ cash flow on said property?

What are your thoughts? Are you cool with $800 cash flow when you could take less and cash flow much more!

@Cory Iannacone I am doing the same. 7 Duplexes in 1.5 years.  Have to love those duplex and up! 

Thanks all! When I was in college I was taking an analytics course.  One of very few courses that ever really had top use for me.  If only I could collect the right data to make prediction models and the like.