All Forum Posts by: Ike Stephens

I'm calling Andrews Credit Union on Monday. According to their website, they go up to 50k with rates AS LOW as 10.xx%. I'm in a similar situation and looking for a high LOC.

PenFed does hand out a no fee cash advance card with a $10,000 limit like candy to anyone with decent (700ish +) credit.

If you find any banks doing high limit LOCs, definitely let me know!

 That's a very real possibility. We have a $115,000 line of credit for my other business (not real estate related) and once all the shutdowns started happening earlier this year, I decided to access all of it. About 2 weeks later we got an email saying that they're suspending all lines of credit (across the board) for the time being. If I didn't already access those funds I'd no longer have the ability to. 



I'm not sure how most institutions will react if there's anything like this later on. It'd probably depend on their unique situation as a lender, your history with them and the size of the line of credit. However, I'd definitely take that possibility into account.

Ike

 In Cleveland, you (or me in this instance) are required to pay for the water/sewer. I pay for the lawn maintenance. What are your thoughts on my questions in the original post?

 Thanks for the reply! I'm thinking that may be the best way to do it. 


Ike

This one is on the West side in Edgewater. Previously they were rented at $850 and $675. It's now completely vacant and it needs some work to get rent ready again so we're adding value while we have to do work anyways. We're also trying to bring the property up to the standard of other homes in the neighborhood. After the repairs, we're expecting $900-$1,000 for the upper and $800-$900 for the lower.

Ike

I have a little bit of liquid cash and I'm trying to determine the best way to put it to work. Here's the picture:

I recently purchased a duplex in Cleveland that I bought for $82,000 last year. I currently owe about +/-$60,000 on it with a traditional, conforming mortgage. The duplex is now vacant and we're about to start a rehab on it which should cost about $25,000-$30,000. There are comps in the neighborhood that will have the ARV in the 110-135k range (a very similar duplex a few doors down sold for $130k 6 months ago and ours will be nicer when complete).

I currently have enough cash on hand to pay off the mortgage and complete all the repairs. I'm trying to decide the best course of action. I'm currently considering:

1) Pay off the mortgage and then obtain a new one after the repairs are done and it appraises for a higher price. Would I need to wait for the title to season (6+ months) or could I obtain a new mortgage sooner? 

2) Complete repairs and apply for a HELOC. Would they base the equity portion off the original sale price ($82,000) or would they appraise it higher ($120-$130) since there are repairs made and value has been added?

3) Attempt to refinance after repairs are done. Is this possible and how likely are they to appraise it at a higher value?

4) Just pay for the repairs and use the leftover money on another deal and attempt to recover some cash from this one at a later date.

I want to free up as much money from this as possible to put into another deal but I'm not sure on the best way to go about it. Time is another factor as well since I'd like to find, purchase and rehab one other property by the end of the year.

Thanks in advance for all the help. Hopefully, I did a good job of explaining the situation.

I'm in need of several contractors for a duplex in 44102.

I need:

Roofers
Drywall
Kitchens remodeled
Bathrooms remodeled 
Flooring
Windows & doors replaced.

If you have quality folks, I'd love to hear about them!


Thanks in advance!


Ike

A brief overview of the situation:

In September 2019 I purchased a duplex in Cleveland, OH using a conventional mortgage with 25% down. I'm about to make a lot of renovations to it that will significantly increase the value of the property (roof, interior/exterior paint, flooring, kitchens, bathrooms etc).

If I apply for a HELOC, will the bank likely use the purchase price from September or will they consider the renovations when appraising it? Basically I'm trying to determine if there's any way to recoup some of the costs of the renovations? Would it help if I held the property for 12-18 months before applying for the HELOC?


Thanks in advance!


Ike

Does anyone have a spreadsheet for tracking income/expenses that they'd be willing to share? I only have one property (2 doors) right now so I don't have a need for any software quite yet. (Although if you have suggestions on that I'm all ears). I've found a few online but I want to be able to track expenses for each property individually. If anyone has one they'd like to share I would greatly appreciate it!

Are you asking if you should use your own cash reserves or borrow the money for the duplex? I don't think I'm reading your question the right way. Could you clarify a bit?