All Forum Posts by: Jackie Nguyen

Quote from @Andrew Zamboroski:

Quote from @Jackie Nguyen:

hey folks, i have a primary home with a mortgage and an investment property with a tenant inside and no mortgage on it. I recently acquired a building that i will be turning into a restaurant. I want to either cashout refi or get a HELOC on the investment property for about 250-300k to use towards remodeling the new building. My concern is my DTI to include front and back end is about 60-65% is there anyway i can take some of the funds from the cash out refi or heloc to pay down my debt and lower my DTI as closing to actually qualify? Or would i not be qualified until i am within their DTI range? Thank in advance

You can typically have debts marked to be paid at closing if that is what you're looking to do. Eitherwise, a DSCR loan could be a fantastic tool in this scenario. Qualify based on your properties income versus your own and save the headache of DTI calculations.

So when i go through the process for either the heloc or cashout refi, i can ask them to put it into a contract to pay down certain debt to bring the dti down to their desired percentage ? 

hey folks, i have a primary home with a mortgage and an investment property with a tenant inside and no mortgage on it. I recently acquired a building that i will be turning into a restaurant. I want to either cashout refi or get a HELOC on the investment property for about 250-300k to use towards remodeling the new building. My concern is my DTI to include front and back end is about 60-65% is there anyway i can take some of the funds from the cash out refi or heloc to pay down my debt and lower my DTI as closing to actually qualify? Or would i not be qualified until i am within their DTI range? Thank in advance

Quote from @Erik Estrada:

Quote from @Jackie Nguyen:

Quote from @Erik Estrada:

Quote from @Jackie Nguyen:

Hey folks, my parents and i just bought a commercial building and plan on making it into a restaurant. I was wondering what options we had to get a loan of approx 300k to fix up the property. The building is in our LLC. Would we have to get a loan in our LLC or should we get it in our personal name? Currently serving in the military, so if there's any options for military members, that'd be great! Thanks in advance.

 Hey Jackie, 

Is the property vacant? What is the current zoning of the property? Do you have history operating a restaurant for the last 2 years? 

What is the current as is value, and is the property free and clear? 

 Current zoning is commercial on and commercial strip. I do not have experience, but my parents do years ago. They are also real estate investors, so they have plenty of real estate as well to show. Property is also vacant. We just need to funds to update the property and buy the appliances. 

If it's vacant, the terms on a bridge loan won't be great and it will be costly. Have you looked into tapping into the equity of other rental properties your parents own to complete the project? Either through a HELOC or Cash out Refi?

 Haha, i didnt think of HELOCs or a cash out. I appreciate that for sure!

Quote from @Logan Singleton:

Hi Jackie, Thank you for your service. Since this is a commercial building and a business will operate in the space, more lenders will require you to close the loan under your LLC. Now, as for financing options, you could look into getting a bridge loan. These are short-term products with a 12-24 month term with monthly interest-only payments to cover the renovation costs and refinance into a long-term loan product.

 Thank you for that. Is there any other loan options? I have been reading up on the SBA 7a loan. But this is a new business venture and so im scared it might be hard to secure a loan when we can’t really provide profit margins and etc. there are rental properties on the llc that we could use as collateral if needed

Quote from @Erik Estrada:

Quote from @Jackie Nguyen:

Hey folks, my parents and i just bought a commercial building and plan on making it into a restaurant. I was wondering what options we had to get a loan of approx 300k to fix up the property. The building is in our LLC. Would we have to get a loan in our LLC or should we get it in our personal name? Currently serving in the military, so if there's any options for military members, that'd be great! Thanks in advance.

 Hey Jackie, 

Is the property vacant? What is the current zoning of the property? Do you have history operating a restaurant for the last 2 years? 

What is the current as is value, and is the property free and clear? 

 Current zoning is commercial on and commercial strip. I do not have experience, but my parents do years ago. They are also real estate investors, so they have plenty of real estate as well to show. Property is also vacant. We just need to funds to update the property and buy the appliances. 

Hey folks, my parents and i just bought a commercial building and plan on making it into a restaurant. I was wondering what options we had to get a loan of approx 300k to fix up the property. The building is in our LLC. Would we have to get a loan in our LLC or should we get it in our personal name? Currently serving in the military, so if there's any options for military members, that'd be great! Thanks in advance.

Hello everyone,

I’m currently looking at a commercial building that is for sale. My goal is to buy and turn it into a restaurant. I’m partnering with my parents.  My question is how do I approach this with getting a loan? Do i seek a small business loan or do i seek a commercial real estate loan to buy the property? We have the funds to renovate and start the business. Just needs to buy the property. I apologize if this is a dumb question. I appreciate all/any advice that is given!

Quote from @Tim J.:

@Jackie Nguyen  Looking for clarification here

You already own this home, but you do not live in it, or you are going to be deployed somewhere else and you are thinking of renting it out while not living in it - vs selling it?

 I currently live in this property and plan on moving out and purchasing another property by next year. So i’m just trying to plan ahead and see what my options are. 

Quote from @Troy P.:

A few more things to consider...

Is an HOA involved? Townhome community HOAs can quickly eat up cash flow, especially with special assessments and increasing dues over the years.

What is your current tax amount?  Changing from primary to investment and removing any homestead exemptions will immediately increase your taxes and reduce cash flow.

What is the P&I on your current mortgage?  First rule of thumb is P&I should be half of market rent.  If your P&I is not under $900, this will probably not be a good rental.  Is the home worth $180K?  If it doesn't come close to meeting this 1% rule in this current market, it will probably not be a good rental.

It's usually very difficult to cash flow after putting 0% down.  If you account for all of the above plus 10% for capex and repairs and can still cash flow $1, it may be worth considering.  I read a book once that suggested if the home cash flows $1, it is a good investment.  The issue is most people do not accurately calculate their monthly expenses and quickly end up in a bind.  Do yourself a favor and don't cut any corners.  Be conservative with your estimates so there are no surprises.

Thank you for your insight. The house is worth around 200k, but only payed 165k. Hoa is $25 a year and that’s for lawn cutting. Area is in kansas city, kansas. Taxes is roughly around 3k. The area is around shopping mall, restaurants, casino, racetrack and concert area. There are more luxury apartments being built in this area, a massive clothing company just built their warehouse here, so that will bring in way more jobs. P&I alone is about $950/month. Without a property manager, i will be cashing flowing approx $150-190.

Hi all, i may be overthinking things, but i’ve been trying to get a general idea of what i could receive in cash flow from my primary property. A little background, i’m currently serving in the army actively and this is my first home(townhome). My mortgage, insurance, and taxes is about $1326/month. Current rents for a 2/2.5 is about 1600-1800. I have a finished basement that i can add a closet to and possibly declare as a 3rd bedroom. I put zero down, but will be spending about $20k to fix the property. I really want to get a property management in because i’m afraid i won’t be able to find a tenant as fast as them. Property management around here is around 8-10%. if i rent at say $1700/month, With property management and %10 aside for vacancy and maintenance, i will have about $60-$130 in cash flow. Im afraid that this range isn’t good enough. Or should i manage the property myself? Any advice or ideas would be great. TIA.