All Forum Posts by: Gerard Scranton

Thank you all for your feedback! Really appreciate it.

The ARV is $130K. I have 2 very strong comps in my area that were sold in May 24'.

You guys are absolutely right about the DSCR and penalties they may carry. Great point to consider.

Average rent in this area for a 2/1 is $900-$1200. This house is currently a 2/1 but with the additional 480 sqft of living space (main bath, dinning, walk-in closet). From 990 sqft to 1470 sqft. Should definitely add great equity to the property. 

@Nate Herndon I really like this approach and would like to connect with you to discuss further.

BP Fam! I have a property with over $80K in equity. I would like to rehab the property. Rent it out and refinance. The mortgage balance is $26K (-/+). The rehab + landscaping = $65K (approximately)

Would it be better to seek out private money and pay them back at refi or attempt a cash out refi. This will be my very 1st rental opportunity. I do have a holding LLC and an LLC within. I have tried to get business funding but I'm facing such a run-a-round with that. I have been in the real estate community for some time now and feel as though I should just know what to do and how. But unfortunately, I feel stuck. How do I proceed forward with little to no funds? I hear people all over talking about how this is possible. Can someone please shine some light and direction?

Extremely Grateful!

@Dustin Tucker

Thank You so much for your response and insights. I do have a Holding LLC with an LLC within. But, because this property was deeded to me and my wife, I don't think I can move this into my current LLC because of the anonymity. I will open an additional LLC and move forward.

I didn't think about DSCR and how it can be utilized in this situation. I believe it's the best route.

We will be patient with the primary property and watch for better rates. I do agree they will be coming down shortly. 

Thanks again! 😎

Hello BP fam! I'm having trouble with the decision of refinancing my primary property before starting the process of rehab/refi for my investment property. My concern is that my DTI may be negatively effected if I refi my primary 1st. Or at least that's my mindset. This refi will definitely increase my mortgage payments but it will also absorb a HELOC which will put a stop to I/O payments. (HELOC was tended for investing but went bad and now just paying interest for nothing. A REI mistake I'm trying to recover from)

This will be my actual 1st property.  I inherited it from my mother-in-law. 

Balance: $26K  2/1 990 sqft 0.5 acre. 

Value as of 11/22: $105K (appraisal)

My goal is to pull cash out to rehab. In it's current state, there is $80K in equity. With an updated appraisal, I'm sure there's more equity available. 

Any advice as to what to takle first would be greatly appreciated. 

EVERYONE! Thank you so much for your responses. We really do appreciate it. @Mike Klarman, Yes you are correct, it would go much smoother that way. Unfortunately, we didn't close the deal. But, what a learning experience. I did find a great investor friendly contractor. Which we will surely use in the near future. In addition to 2 other investors in my area that were willing to help. 

All input given was /is extremely valuable! Thank you BP Fam!

Hello BP Fam!

I'm currently under contract with my first investment property. It's a 2/1, 1596sq ft, .88 acre. It has a 1200 sq ft. detached garage with electrical and HVAC already installed. Future plans is to convert to 2 studio apts. The home is in need of serious repair. Leveling and some floor joist replacement. A huge hole in the floor. In addition to other minor repairs. I would also like to add a Main bedroom with bath. Bumping it to 3/2.

I got this deal off market from a local realtor. $125K, 20% down Conventional loan. I also have a Hard Money lender. Unfortunately, I'm awaiting estimates from contractors that are not responding in a timely manner with estimates. I honestly feel trapped. Stuck and don't know what to do. So, I asked my conventional loan officer if I could just purchase the house. Response was that they will not loan on a non-livable home.

Is this a show stopper? Has anyone dealt with this? Are there any other lenders that would? I don't want to lose this amazing opportunity.

I'm totally open to suggestions. My closing date is July 5th. With no estimates for the Hard Money, unresponsive contractors, and unable to purchase due to current conditions.

Thanks BP Fam!

Hello BP Fam! 

I'm currently under contract with my first investment property. It's a 2/1, 1596sq ft, .88 acre. It has a 1200 sq ft. detached garage with electrical and HVAC already installed. Future plans is to convert to 2 studio apts. The home is in need of serious repair. Leveling and some floor joist replacement. A huge hole in the floor. In addition to other minor repairs. I would also like to add a Main bedroom with bath. Bumping it to 3/2. 

I got this deal off market from a local realtor. $125K, 20% down Conventional loan. I also have a Hard Money lender. Unfortunately, I'm awaiting estimates from contractors that are not responding in a timely manner with estimates. I honestly feel trapped. Stuck and don't know what to do. So, I asked my conventional loan officer if I could just purchase the house. Response was that they will not loan on a non-livable home. 

Is this a show stopper? Has anyone dealt with this? Are there any other lenders that would? I don't want to lose this amazing opportunity. 

I'm totally open to suggestions. My closing date is July 5th. With no estimates for the Hard Money, unresponsive contractors, and unable to purchase due to current conditions.

Thanks BP Fam!

I too, was on the edge of trying them out. It does seem to be expensive but they seem to offer a lot of services. I personally felt, since I'm new and still haven't closed on my first deal that It may be a little premature. But, at the same time, I want to start off with a great foundation. 

I'm interested also if anyone has used them and can attest to their quality and value.

Hello @Edward Adams, I was just scrolling through looking for HELOC info and ran across this old post. I'm currently looking for "line of credit" for my primary residence. I live in

Wharton Texas. SW of Houston on HWY 59S. Will DM you.

Thanks

I currently have focus on a potential investment property near NRG stadium. In addition to various hospitals and clinics. Not sure about the in's and out's of this market. How to market in that Neche.  This property will cash flow but not confident about the equity generated. This could be a great 2nd investment property, to generate steady flow towards future investments. Any suggestions or direction and possible connections will be greatly appreciated!