All Forum Posts by: Michael L.

Hey there BP community,

I'm getting ready to tie up a house in phoenix with hard money and i'm having some issues with the refinance part.

Here's the deal:

Purchase price: 90k

ARV: 135K

Rehab costs: 5k

The issues that i'm coming up with after talking to a few lenders is that in order to lend on the ARV I need the property to "seed" for 12 months. Otherwise they will only lend on the purchase price which leaves with a lot of cash tied up and a high monthly payment for my hard money loan. The hard money loan will cost me about $850 a month and with my rental at $900 I'll probably be neg. cash flow with expenses and such.

In my opinion the numbers work well even with a flip strategy but i'd like to hold on to this for long term since the neighborhood is nice and my goal is to build my rental portfolio while I work my regular job. 

Please let me know if you have any suggestions on how to cash out refinance out of my hard money loan using the actual value of the house (ARV).

All your help is greatly appreciated. 

Cheers

I have a rental near a college town. I just found out that my tenants decided to build a wall and put in another door in order to accommodate another person. Looking at the wall and the door it looks professionally done and adheres to my standards. In a way this helps me because now I have a 4 bdr house instead of a 3 bdr but my question is to go after the tenants that built the wall since it was built against my knowledge?

Hey @Ciro Affronti I'm in a similar boat..been working with my Dad doing flips around town. Been learning some stuff through him but ideally looking to get out on my own. Do you have your contractor license? 

@Jared Vidales my sister went to Cal Poly. Know the area very well. Those tri tips sandwiches from firestone are unreal. I'd be interested to hear about those meeting you attend. 

@Paul Santos  Thanks for the link. That will be a great resource for the future. :)

@Marcia Maynard Unfortunately, I did not do a thorough background, and it is now biting me in the behind. As I found out today that he was actually in jail for the last 30 days. This is news to me and he is now asking for leniency. However, i believe it is my best interest to get him out of the house as soon as possible. I had a talk with him and gave him a notice that I will go through the eviction process if I don't receive rent by Friday. I sat down with him as @Account Closed advised and I think we came to a settling point that if he moves out by Friday I will give him back his full deposit. I believe it is a "win-win" as he doesn't have to come up with the rent and if he does move out he will get cash to leave. For me, I won't have to deal with him anymore. I will be out a full month of rent but i think it's better to have him out of the house then worry about few hundred dollars. This has definitely been an eye opener for dealing with tenants. :)

Hello BP - this is my first post on BP and I have to say the amount of information I've received from this site is unreal. So I finally got the nerve to start contributing...the feeling of asking a stupid question has been daunting but it seems that the community is pretty accepting. :)

Anyhow, I finally purchased my first SFR in Phoenix, Arizona in October and recently decided to house hack one of my rooms to help with expenses. I did a bunch of screening for roommates and finally found someone that i thought was reliable and trustworthy since i'd be living with them and all. I put together a month to month lease for my protection and the first month went well but when i came around to the second month the issues began. The main issue being he hasn't paid rent and it has been 6 days. Now my question is am i allowed to evict him? can i change the locks and not let him in to force him to pay rent? I really just want to know my rights since i think there a little different from a regular landlord as I am living in the house. What concerns me is the issue of my private property inside (don't want him to sell my TV to pay rent you know?) If anybody has experience with this or any guidance it would be greatly appreciated.

This site is amazing! Thanks for reading :)