All Forum Posts by: Dror Brumer

I think the key info for a better answer will be how much is your cashflow on that house today , what will be the cashflow after the refi' and what will you do with the money you are cashing out ?

If you will do a cash out and use the money to close the HELOC ( I guess the rates are 10% on those today) you will also save ~28K a year of paying the HELOC int' .

0 Votes

Quote from @Chris Seveney:

@Julie Asmussen

Why are you wanting to cost yourself more money? Moving to a LLC only costs you more money and does nothing else for you

If you think it will do asset protection you are getting bad info because your LLC is not separate from you, why is that, because the LLC did not even buy the property you moved it over and still have a loan in your name

What about setting a trust that will hold the property and the LLC will hold the trust ?

1 Vote

Hi all,

I am looking for a mentor that will help me to achieve my 2024 goal of buying a multifamily investment

Currently I have SFR long term properties and I am looking to take the step to buy my first multifamily investment . I read a few books about multifamily but still feel I have a few part missing in the puzzle.

What do you think?

Dror

3 Votes

Thank you all for the good advises.

I agree being negative for $68 is not too bad and with a $45K I can have a down payment for my next one in different state

I will play with the numbers and will decide

Thanks

0 Votes

Quote from @Shaun Weekes:

The plan is to hold for it, it is already rehab and rent for $2600 .

my HELOC rate is 9% - it was 4% when I bought it and went up during the year.
i have a very good Credit score and no issues with the DTI.
since Mortgage rate are around 7% -6.5% switching to a mortgage will increase my Cash flow.
I didn't plan for this to be a Brrr but if I am refinancing I thought it will be good to cash out

I bought the house in a cash deal, so paid 367K (100% down) from my HELOC account. the loan amount today is 255K

I bought the house a year and 2 month ago - it is a SFR house

If your C.I.A. (Credit, Income and Assets) is solid you should be able to cash out 75% of the appraised value or 300k since you mentioned that the home is worth 400K. You can go about this with Fannie and Freddie since you have more than 12 months of ownership interest or a DCSR type loan if your D.T.I. (Debt to Income Ratio) won’t cut it. This is guessing that this is a long term hold of course. If it's not then I would just leave it and sell 12 to 24 months from day 1 ownership to the end of 2 years.

I would pay off the HELOC so that you can complete the BRRRR. What is the current rent on the property and during your rehab did you work on everything that needed to be fixed up? What is the rate you're being quoted on 300k?

BP. I'm not looking for business, I'm walking the investors through the process so that they can get to the final (R) Repeat.

0 Votes

Quote from @Shaun Weekes:

Quote from @Dror Brumer:

Hi All ,

I have a rental property I bought with LOC , The LOC rates are very high and I was thinking to take a mortgage on the house with a cash out option to invest in one more property

When I am running the numbers the mortgage rates will eat all my cashflow ( getting a negative of $68 a month instead of $200)

House cost 367K - House estimation 400K - current loan amount is 255K - looking to barrow 300K at the new loan

What am I missing or is it due to the mortgages high rates ?

How long have you owned the home?
How much did you put down on the home?
Is the property and SFR or 2 to 4 unit?

This additional information will get you more answers.

I bought the house in a cash deal, so paid 367K (100% down) from my HELOC account. the loan amount today is 255K

I bought the house a year and 2 month ago - it is a SFR house

0 Votes

Thank you all for the feedback - I must say I didn't think about the 25% increase but you make me think

THANKS !!!!

0 Votes

Hi all ,

I have a rental property and the contract ended on Feb/2023 . The tenant asked me to extend the contract till end of April and we signed on the date changes.

Yesterday the tenant asked me to extend the contract one more till the end of June.

I didn't increase the rent when we signed the first extension and I am wondering if I can do it now for the 2nd extension.

I was planning to increase by $50-$70 a month but not sure how I should approach this with the tenant., when she is adding 2 month to the old agreement over and over

This is also an out of state property and I will need to pay for an agent to find me a new tenant incase she decide to leave - and that will cost me way more than the extra $50-$70 I planned to increase

0 Votes

All Forum Posts by: Dror Brumer

Dror Brumer has started 6 posts and replied 17 times.

Post: Using TurboTax with real estate

Post: Real estate privacy trusts

Post: Mortgage refinancing advice

Post: Moving Property into an LLC

Post: Looking for a multifamily mentor

Post: Question about. BRRR

Post: Question about. BRRR

Post: Question about. BRRR

Post: Rental contract ends soon

Post: Rental contract ends soon