All Forum Posts by: Dylan Braun

Hey Angela,

My reason for refinancing would be to get a lower interest rate and have a lower monthly payment. When I was talking with my bank, they said that since I would be living in this as my primary residence still that I would get an owner interest rate. If I did decide to move out and rent it out next year, I would be able to decide at that time. If I decided to refinance after renting it out/not living here anymore, then I would be given the increased refinance rates. The lady I was speaking with informed me that I would be able to refinance at a 3.1% right now. This was for a regular refinancing option - I did not ask about a cashout option (I would assume they are higher).

If I would do a cashout option, I would ideally like to use the money for purchasing a new rental property. 

 Hey Brian,

I currently owe just under $200k, so refinancing (adding estimated closing costs of $5,000) I would be getting a loan for about $200k

I think I answered some of my questions while trying to clarify my question. So the one question I had remaining was the Capital Expenditure question.

- Some of the larger maintenance costs that capEx covers such as: are driveway, siding, and roofing/shingles is covered by my HOA. So, what would be a reasonable percentage to add to the rent for capEx on Townhome properties given that I would not need to save up for these expenses myself?

Hey everyone! 

I am new to real estate investing and looking to get my foot in the door.

I have been living in my Townhome for 2 years. I am looking at refinancing and then in Spring 2021 turning it into a rental property (and potentially moving in with the gf - so no 'new' mortgages). My refinance mortgage would be for roughly $200K with property value around $285K-$290K. The Townhome was built in 2000/2001 so it is fairly new.

- would you enter this into the BP rental property tool for the $200k with all of it being financed? Or how would you use the tool to calculate the ROI as it has not been rented out since the initial purchase date?

- also, with this being a Townhome (HOA fee covering all exterior/driveway/siding/roof/etc.), how much capital expenditure would you include compared to normal?

- I'm not sure exactly how cashout options work... but is that something you would consider (would I even be able to at those numbers?) in order to have a down payment for a second rental property?

Any advice would be much appreciated! Thanks!

When an HOA covers the exterior (driveway, lawn, shingles/roof, siding...) and I would be responsible for windows and interior... how would you calculate CapEx/what percent would you use?

The majority of the larger purchases are covered by the HOA so I wasn't sure if you'd go as low as 1-3%(?) for the other things I'd be responsible for covering.

Any suggestions?