All Forum Posts by: James S.

What is the best company or companies for DSCR loans?

Quote from @Clayton Silva:

It's really stupid but but most banks consider the following to be rural: over 5 acres, if it has an unimproved road to get to the house, if it has a barn or horse stables, if population of town is under 20,000 (population density varies by lender). And more. Lots of homes get designated rural that really shouldn't be.

 How would you like to look into this further?

Quote from @James S.:

Quote from @Clayton Silva:

Quote from @James S.:

Quote from @Clayton Silva:

It's definitely possible and we have done some similar deals.  It depends on the market you live in. Is the property very rural?  What is the total acreage of the property?

9.4 acres. I'm in PA. It's not rural, as there are surrounding cities and the area is in need of rental properties. I was looking to have it convert to a long-term mortgage and eventually cash out refinance to build a second duplex once enough equity built up

 Unfortunately that is going to be designated as rural by almost every bank just for the acreage alone. It will make things pretty tricky but not necessarily impossible. I'd be happy to take a look at it if you want to connect

 I would appreciate it

Even if the property is surrounded by homes and even an apartment complex next lot over?

Quote from @Clayton Silva:

Quote from @James S.:

Quote from @Clayton Silva:

It's definitely possible and we have done some similar deals.  It depends on the market you live in. Is the property very rural?  What is the total acreage of the property?

9.4 acres. I'm in PA. It's not rural, as there are surrounding cities and the area is in need of rental properties. I was looking to have it convert to a long-term mortgage and eventually cash out refinance to build a second duplex once enough equity built up

 Unfortunately that is going to be designated as rural by almost every bank just for the acreage alone. It will make things pretty tricky but not necessarily impossible. I'd be happy to take a look at it if you want to connect

 I would appreciate it

Quote from @Clayton Silva:

It's definitely possible and we have done some similar deals.  It depends on the market you live in. Is the property very rural?  What is the total acreage of the property?

9.4 acres. I'm in PA. It's not rural, as there are surrounding cities and the area is in need of rental properties. I was looking to have it convert to a long-term mortgage and eventually cash out refinance to build a second duplex once enough equity built up

How difficult would it be to get an invester friendly construction loan to build on a property where I live and have mortgage. I purchased a home three months ago that came with 3 households and plenty of land to build on for 288. I put twenty percent down at time of purchase as well. With that being said I'm looking for an investment friendly lender to obtain a 300k construction loan and I have about 150k in cash right now. I also know I would need to get a partial mortgage from current lender to build on the property. Is this possible since I already have a mortgage? I can easily cover 20/25% down with cash on hand.  If so are there specific lender recommendations?

Quote from @Erik Estrada:

Quote from @James S.:

Could someone clarify how a cash out refinance would work after new construction. I own the land with a mortgage (owe about 225k out of 287k) and am living in one of these units. I have about $150k cash on hand as well as I am planning to get a construction loan to cover the remaining cost of a duplex. My question is after the construction is complete, am I able to do a cash out refinance on the whole property to pay off the construction loan in order to build more units? If so does the cash out reset the loan to the original amount or does it increase it to include the value of the new unit (i.e. original loan was 300k and after cash out it becomes 550k?) thank you. 

 I am confused on the post. Did you build a duplex or are you planning to build a duplex? What is the after repair value? 

We purchased a property that has a duplex and single family currently. I am also getting approval to build another duplex on the land (9.4 acres)

Could someone clarify how a cash out refinance would work after new construction. I own the land with a mortgage (owe about 225k out of 287k) and am living in one of these units. I have about $150k cash on hand as well as I am planning to get a construction loan to cover the remaining cost of a duplex. My question is after the construction is complete, am I able to do a cash out refinance on the whole property to pay off the construction loan in order to build more units? If so does the cash out reset the loan to the original amount or does it increase it to include the value of the new unit (i.e. original loan was 300k and after cash out it becomes 550k?) thank you. 

Quote from @Nicole Heasley Beitenman:

Quote from @Jim K.:

Quote from @Steve Vaughan:

@James S. congrats on what looks like a great plan.  I would probably borrow a little more than $100-$150k if I could to keep more reserves.

All I can do is mention my favorite fellow long-term operator and handyman in P-burgh @Jim K.. Hopefully he has a minute to chime in.  

Best wishes on your worthy project👍

 Sorry, James and Steve, Hermitage is another one of those "own little world" kind of places in Mercer County, PA. I know less than nothing about new construction loans for duplexes, let alone how to operate up there, in what is essentially a Pennsylvania suburb of Youngstown, Ohio. Good luck to you, James, because it does sound interesting, and I hope to learn from you in the future.

James--you'd be welcome to join our Youngstown (Boardman) meetup and see if you can get more feedback there. If you're interested, I can message you the details.

If you could I would appreciate that.

i was hoping to get advice on the best way to fund the next part of my real estate journey. I house hacked a property that has 9.4 acres, and has a duplex and single family home on the property. I current get $1,000/month for the single and based off local market expect to get $1,500/month for the other part of duplex (mortgage is $2,080/month after putting 20% down). I am working with the city for approval and have a cost estimate from someone I know of 250k to build another duplex on the property and eventually multiple duplex. With that in mind I have about $140k in cash at the moment and was hoping for advice on the best way to finance the rest/recommendations on who to fund the remaining amount through. I plan to cash out and refinance after completing the unit, and using the remaining funds to construct additional units. Is this a good plan? And advice is appreciated.