All Forum Posts by: David S.

I’m finishing a renovation on a 4plex, and am trying to figure out my next step. I am going to do a cash out re-fi, but would appreciate advice from here. Appraisal should come in around $550k

Option 1

5.25% for a conventional loan

75% LTV for cash out. $412.5k

Solid conventional loan, lowest interest overall

Option 2

5.5% for commercial loan

75% LTV for cash out. $412.5k

5 year balloon, 25 year amortization

if I re-fi into a 30 year fixed at 5.25% in 5 years this looks like $64k more in interest over the life on the loan

If I re-fi into a 25 year loan, adds $170 more a month, but total interest is $5k less over the total 30 years. Probably a slight loss after the second set of closing costs, and that's with the gamble that interest rates don't rise.

Option 3

5.5% for commercial loan

65% LTV for cash out. $357.5k

5 year balloon, 25 year amortization

10% line of credit at prime +1

One plus here, I won’t be paying interest on money I’m not using.

A big concern is timing. I’m doing a walkthrough on an off market duplex on Monday, and it looks like a good deal. I probably wouldn’t have time for the conventional cash out to have money on hand to do the deal. I’m also having my wife do a walkthrough of two possible flips on Monday, both look like solid deals for our first flip. With the commercial re-fi, both could happen easily.

Are there other options I'm not seeing? I'd need about $38-45k for the duplex, and another $30k for one of the flips. Would a crowdfunding site provide the purchase capital and take 2nd position to get me into the deal? Or do I bite the bullet and pay more interest using a commercial loan to free up cash faster?

@Chris Baber Try a google map search for "Community bank". It should show the small, local banks that have fewer branches. Check out their websites, and go from there. I am meeting with a local banker Friday to discuss commercial lending. 

@Nathan Gesner Thanks. I'm looking into used options, but calling plumbers is a good idea. 

Does anyone have a suggestion for replacing hot water baseboard heater covers? We're renovating a 4 plex, and when gutting, the covers got tossed. I figured no big deal, until I tried to find replacements. $70 for a 4 foot piece of metal? What the hell? Not feasible when I've got probably 60 feet in one unit that needs replacement. 

@Tim Swierczek Do you have any 4plexes? I had one quote at $1800 for my 1900s era fourplex, but the next cheapest was around $3600. 

I want to at least get a quote for fixing it. I'm guessing replacing it with a much less visually appealing deck would cost $20k, maybe even $30k. 

Ok, maybe porch is more accurate, but it is open - no windows. It is two stories, with a roof. Main level is about 4 steps off the ground, then a second floor for egress from the upper units. Exterior is stucco, beams are wood. 

I'll see if I can find a foundation company. I talked to one, but they wanted someone with an engineering degree to figure out how to lift it up. 

How did you find the note?

I have a two story deck that is sinking and pulling away from the house. Might be original with the house from 1908. Has a roof, is made of stucco. Has no footings. 

I'd like to have the deck jacked up, and put diamond piers, helical piers, screw piles, or whatever under there to keep it from sinking further, and so I can make minor repairs to the deck. 

Anyone have a contractor to recommend? I've talked to probably 8, and all have been either unwilling or unable to do the project, or straight up don't respond after a while. Haven't even been able to get a single bid. 

@John Mocker Thank you very much for the information. All good things to know.