All Forum Posts by: Faysal Alam

@Ryan Konen i looked into ally , they only work directly with dealerships and not for refinances , I'll look in to the other 2

@JD Martin it will , because I can than get a primary residence without the car debt showing up on my debt to income

What banks or credit union can I use to refinance a car under my LLC name , my car is a 2023 Tesla model y performance , I owe $42,500 on the car , I'm looking to refinance the car under my business , my business was established 03/2023 . So less than 2 years . I am in New York City , I use the car for my rideshare business , I have no problem personally guaranteeing the car, I'm just looking to get it off my personal name so I can improve my debt to income ratio on my personal side . Please help !!

@Dustin Tucker I'm here in new york city , Owner financing isn't really accepted as much here , I'd be very interested in taking up that offer , send me a message I'll try to send you one as well and we can discuss further

All right, let me tell you guys about my current situation , i’m thinking about going down to very different routes. Let me know what you guys think

I have about 70 K in liquid cash

$250k in a heloc , so total is $320k I’m working with

Option 1: Go 5% conventional on a two family home which would be about 90 K with down payment and closing costs , I am preapproved for 950 K . Live in one unit , rent out other unit and accessory unit, mortgage on the property would be about $6800, rental income would be : $3000 from additional unit , and $1500 from accessory unit and I would be occupying one unit , leaving me at negative $2300 per month .

Option 2: I found a house that the asking price is 930k , but I’m sure I can get a discount on it because it needs a lot of work , it doesn’t qualify for traditional financing , so I would need to take a hard money loan , it needs about 150k worth of work , the plan would be to offer the full 930k asking price but ask for a 6% seller concession , I calculated 20% down payment and 7% closing cost , so total after seller concessions comes out to 21% down payment which is $195,300 . Hard money lender would finance 70% of repairs so 105k out of 150k and I would put in the other 45k . So all in I am at $240,300 , hard money I am factoring in as 15% rate and since I’m borrowing 840k for let’s say 6 months , I’m factoring in hard money costs at 63k for 6 months

So now all in I’m at $303,300

ARV should be at least $1.3 million (conservatively)

I would cash out refi with a dscr loan and get back 975k , I would pay the $840k I owe to the hard money lenders , leaving me with 135k , and I would pay myself back with that money , and since I would have $303,300 invested , I would pay back 135k to myself leaving me with $168k invested in the house with a equity position of $325k , the actual house number are such after the cash out refinance:

This house has 2 units and 3 accessory units

Mortgage : $7100

Heloc payment : $1300

Total = $8400

Live in 1st floor

Rental income 2nd floor : $3000

3rd floor: $1500

Accessory unit 1 :1200

Accessory unit 2 $1200

Income : $6900

Net : negative $1200

I also already have a house that’s breaking even , but I’m living in one unit and if I move out that house would become positive $1500 which I can put toward the payment of one of the other houses .

Which route would you take and why ?

So at the moment I'm already house hacking in NYC using my fha , I have around 175-180k equity that I can possibly pull out , I am thinking of going down 3 routes :

Option 1 put down 15-20% down on a 2 family house with an adu in NYC , it will cash flow about $1000 after all expenses renting out all units . Also probably the best appreciation

Option 2 : invest all of it in out of state properties , about 2.5 hours away , about 25k down on all the houses , I would probably be able to get about 6 houses and keep some money left over for any expenses , this would generate about $1800/ month in cash flow .

Option 3 : buy 4 rental properties out of state with about 100k , to cash flow about $1200 a month , keep the 80k and use about 60k of it to eventually buy a single family here in NYC as I can do 5% down for it , but it would have to be the following year after filing taxes .

Which option would you do and why ?

@Guy Cardinale hey man I'm also in NYC , and am also house hacking ! Let's connect ! IG : escapethematrixnyc

@Rafiat Adedayo I house back in NYC , check out my YouTube channel escapethematrix

All right so I bought my house in July 2020 , the mortgage on my house is $4050 , I rent the first floor for $2400 with utilities included , they just finished year one of a 3 year lease , the second floor is renting for $2150 with utilities separate but as of January 1st the rent is being raised to $2,300 with utilities still separate. Water is on average another $100, electric $100, heat about $200 in the winter months , and in the other months it's around $50 so I take the other $150 toward cap ex, so all and all the expenses I account for are at $4450 and I get $4550 from rent , but it's going up to $4700 starting January . I currently live in the basement unit which can be rented for $1300 if I were to move out but in this case I'm living for free. As far as income 2019 I made about $40,000 on the books, $25,000 in 2020, and I'm projected to make $40,000 (W2 income) in 2021 with maybe another 20k from 1099 Uber income , another 18k in cash off the books from tips , two families sell in a 1 mile radius for an average price of 950k I currently owe $680,000, I bought the house for 715k last year , also my income does not include the rental income as I have not filed that as of yet and I would for 2021 , based on all of these numbers would I be able to get a Cash out refinance at a $950k appraisal for a new loan of $712,500 pay back my loan for 680k , take the difference of $32,500 in a cash out , it would probably lower my mortgage as I would get a new loan at 75% LTV based on the new appraisal, meaning I would have 25% equity left in the house and remove my PMI . Side note I have about 20K in credit card debt which is currently at 0% interest , and a 42,000 car loan , I know not the best for the situation I'm in but it is what it is I need the car to make money so it is also an investment as I'm a pizza delivery driver in the 1099 income would come from driving Uber . Based on all of this do you think a Cash out refinance would be possible I'm currently at a 2.85 interest rate, but a new loan without PMI would ultimately lower my payments and bring me more cash flow . Help on this would be appreciated I know there's a lot in this

So I need a whole bunch of work done to my soon to be house hack , the list is as such but not limited to in order of priority :

-Roof for house and garage

- siding

- all windows and window frames

- kitchen and bathroom reno in 2nd unit

- fix minor foundation cracks

- upgrading all electrical outlets in 2nd unit

- gas fired boiler will need to be replaced but can last maybe another year or two without replacing if serviced

- water heater will need be to be replaced soon

- appliances for 2nd unit

- leveling the hallway of the 2nd unit

- painting the foundation and the 2nd unit

- both units currently have a styrofoam ceiling which makes the units look smaller than they are , but this will only be if I have enough money left over .

The first unit is in good shape .

Also want to do a cheap kitchen renovation in the basement if I have any money left over

What should I estimate for this project ? How should I go about finding contractors for all these jobs ? Should I have one person for everything or different people for different jobs ? Contractor referrals would be appreciated . The house is a duplex with 1814 SQ ft .

Also what other upgrades if any would help build equity in the house ? I'm buying for 715k but it appraised for 745k as is . Looking to put in the work and have it appraise for around 850k .