All Forum Posts by: Jacob Carlson

 I have heard of some banks doing portfolio loans where you can combine your equities.  I am planning on doing this in the future. 

@P.J. Bremner that was a very good insight. I appreciate the time you spent explaining all that. As this will be my first experience doing this I am not 100% certain but the small local bank I plan on working with is telling me that I can start the 3-5 week process of getting paper work going with the appraisal and pull 70% basically right away from my investment property. I think that smaller banks have more flexibility in their terms than bigger national banks. Anyway, Thank you for sharing information!

We have had confirmations of on going rehab with pictures to prove it during and we will receive more at the end of rehab. It is of course everyone's own choice to get a turnkey or not. Morris Invest seems like a sturdy company to me. If they were doing anything shady or not performing the work agreed upon they would be out of business and no one would buy from them, instead of growing as a company like they currently are.

@Eric C. The bank I am working with is Huntington Bank (out of Indianapolis)

I have also heard that these National Banks may work too. - I have been looking for a local one to my rental. It takes time to find one that will loan on investment properties. Basically all will lend you a HELOC from your primary residence depending on your equity, credit score and DTI. Huntington Bank offers 100% from your primary. Heres a little list. Hope it helps!

Northpointe Bank

Wells Fargo 

Pentagon Federal

Wells Fargo 

TD Bank

Thanks for the responses guys. So, I finally found a bank that will do a HELOC on my investment property. I have been calling 3-4 banks a day for the past several weeks and finally found one. Anyway, the terms are 4.99-5.99% locked in if I use more than $10k of the amount available. I am able to get 75% LTV immediately after the property has been rehabbed and appraised. Which is great - no seasoning period required. So, my plan is to do exactly as @Alan Russell said. Use that LOC to fund my next investment property. Rinse and repeat. I want to get a property that will appraise at a higher amount for the next property that way I have more in equity to buy the next property.

@Denny McKown I started working w/ Morris Invest mid January 2018. I waited for a deal that looked good to me to come along and I accepted it. I have the title and my LLC name is on the property on the county website. The rehab was pretty big on this property as it was the worst one on the block. We are hoping it appraises for $55+ and can do another one. Rehab should be done in Late April/May and things are going smoothly so far for us.

@Brent M. Thank you for your feedback. I have done quite a bit of research on MI and at the end of the day it appears that everyone got the rent income they wanted even though it was not always smooth sailing. I waited for a good deal to come along through them and took it. The house is the ugly duckling on the block and the homes around it are listed at $55k-115k. I am not looking to make this post about whether or not Morris Invest is a good idea. 

You are right it is easier to refi houses that would have a higher ARV in order for the appraiser to have better comps to look at. I have spoken with a few banks that could do a home equity loan. For instance State Farm offered me 70% LTV and they told me the property needs to be at least $25k.

       My question is if I do a Cash-out-Refi and get a mortgage on the rental home does that raise my debt to income ratio and make it harder to do a Cash-out-Refi on the next property? The numbers work for me on this house to have the tenant pay the mortgage and I will still have some cash flow. I may or may not get my next property though MI but I am happy that I jumped in and started my journey rather than get into a state of analysis paralysis. I want to to learn from each deal and try to make the next one even better.

I appreciate your response.

@Ian E. 

Now that it has been a few months with renters in your property how are things going? I am interested to hear. My wife and I also got a property from Morris Invest. Would you get another investment property with them? 

Hello Everyone, My wife and I are new members and are excited to be a part of BP!

We currently own one SFH property in Indianapolis. We got this property through Morris Invest (They are awesome by the way) Acquisition cost and rehab for our property came to $45,500. We are hoping it will appraise for $55,000 or more. We used a private money lender to purchase it, with $15,000 of our own money. It will be done with rehab around May 2018 and we are looking to snow ball this into our next property. My question is how do we pull the equity out and roll it into our next property? I have called around to local banks and no one seems to offer a HELOC on investment properties... So would a Cash Out Refi be a good option? Which means a 45-60 wait period with a higher rate than a HELOC.

My private lender is good to help with the next property and the next property so the debt from this first property will continue to transition over to the next property as I acquire another one and they make their return. 

Is a cash out refi the best way to snowball into the next investment property?

Is there typically a seasoning period that we will have to wait for? We want to use this method and get 3 properties a year.

If I need to add anymore info that can help explain this situation let me know.

What are your thoughts? 

Thanks in advance guys!