All Forum Posts by: Grant Sevek

@William Stewart

I'd probably walk away from that deal. Generally you want to aim for rent to be at least 1% or more of the purchase price. Look for deals that you can get some forced equity on. Think 70% of ARV after your repair cost. Especially right now. Find wholesalers in your market to email you their available properties. Use the BRRR strategy with private money.

@William Stewart

What are the market rents. Is it already rented?What is the condition and age of the house? Whats the ARV?

@Jaysen Medhurst there is a brand new condo development right next to this piece of property with a waiting list. Rent is 2,000 per month for 2br 2ba units. A newer development across the street with homes from 320k to 700k. 

What interest rates and LTV are you seeing on Helocs right now? I was considering this option. I know Huntington Bank usually has promotions for them..

@Jaysen Medhurst 

I will have a real estate attorney create a HOA and I will sell each unit for 200-240k. If I need to rent them, market rents are $2,000 plus per month. Cost to build will be 100k per unit. Land, surveying, blueprints, concept plan, zoning and building permits, connection fees, etc will cost aprox 200k which will be used from the first loan.

Developing this way will allow me to scale out. I will be able to use cash from the sales of the first condo units as down payments to build more, or I will use cash from the sales of existing rentals as down payments. 

I will be $0 out of pocket. The would have a 2nd position on a few of my rental properties to fund the down payment of the commercial loan. 

There is a big shortage in reasonably price multi family properties in my area. The ones that are available are over priced and would have high Capex.

Ken- Thanks, that is a good idea to use a combination of the two. I am talking with multiple lenders to try and get the closing costs down as well. 

I am working on a new planned development to build multi-family Condo's. Should I use a cash out refinance on my existing rentals for the down payment on the 1st commercial loan, or should I let the commercial lender use my rentals as collateral for the loan? Below is the breakdown. 

 New Commercial Loan= $600,000. This money will be used for land acquisition, surveying, engineering, concept plan, blueprints, zoning and building permits, and first 3 unit condo build. 

Down Payment= 20% or $120,000

Interest Rate= 4.75%/ 25 Years

Interest only payments for the first 6-12 Months during construction. 

I currently own 3 multi family and one single family rental with equity. I would either let the commercial lender use the equity in my properties as collateral for the $120,000 down payment at 4.75% ARM for 25 years, or I could do a cash out refinance at 4.32% 30 year fixed for each property. Each cash out refinance would add about $6,000 -$9,000 for closing costs and fees for each property. The cash out refinances would be at 75% LTV and extend my loan repayment on my rentals. Most of my rentals interest rates are currently 4% to 4.8%.

Looking forward to some good advice from some Bigger Pockets experts!

Hello BP community! I have been investing in real estate for the past 3 years. My first deal was a big loser. Fix and flip in University Heights, Ohio. Holding costs and higher taxes ate away at all the profit.  Since the first bust deal I have been focusing on buy and hold properties in Stark County. I currently own two duplexes, and three single family homes. I do not have a mortgage on any of the single family houses. My plan is to use the equity from these properties to buy more single family houses. 

I am a member of the local stark county REIA. I would highly recommend joining the group if you are from the area! Great resources and very real down to earch people.

I am looking to learn more about creative financing and ways to find private money at reasonable interest rates. 

So glad this site was created! Please connect

HD Davis CPAs. Ask for Tim Petrey. He is a partner. They do my whole families taxes. How many properties do you have?