All Forum Posts by: Jamie Ross

Hi all, I'm interested in perspectives on my current scenario: I have a bank willing to do a cashout refi on one of my investment properties. HOWEVER, the cash after closing will likely be enough to buy one premium (turnkey) or two low-end properties. Meanwhile, I will lose my margin with the refinanced investment property (from $400/mo profit to $50). So essentially, I would expect to break-even with my margin (after acquiring a 1-2 new properties), or in other words my profit would be about the same as if I didn't refinance at all. I'm not sure if acquiring another property with potential vacancies/tenant liabilities is the right thing to do or not. Any advice is GREATLY appreciated!

I have a property under contract, but the underwriter at my hardmoney lender indicated that since the bottom unit has most recently been used as a commercial property, that the appraiser will want to classify the property as commercial thus negating my ability to obtain financing. My plan is to rehab the property and convert it into a true residential duplex. Has anyone else run into this dilemma? 

Hello all! This will be my 4th investment property, but first true BRRRR and I'm hopeful that someone can point me in the right direction. I found a very strong deal and was able to get the property under contract dirt cheap. However, my original lender is indicating now (after the fact) that they will have trouble converting my property into a 30-year loan. I am now slightly panicked because I can't walk away from this deal...I need to find a way to make it work. Below are the details:

The major complication from the original lender is that it is zoned as mixed-use R-2. There is a dentist's office in the first unit that I plan to convert into an apartment. The second unit is fine as is and will also be an apartment. They are indicating that the appraiser will see the value in the dentist's office, thus appraising it as a commercial property instead of a residential duplex zoned as R2. Does anyone know of hard-money lenders that can help? Any help is greatly appreciated!

Hello all! This will be my 4th investment property, but first true BRRRR and I'm hopeful that someone can point me in the right direction. I found a very strong deal and was able to get the property under contract dirt cheap. However, my original lender is indicating now (after the fact) that they will have trouble converting my property into a 30-year loan. I am now slightly panicked because I can't walk away from this deal...I need to find a way to make it work. Below are the details:

The major complication from the original lender is that it is zoned as mixed-use R-2. There is a dentist's office in the first unit that I plan to convert into an apartment. The second unit is fine as is and will also be an apartment. They are indicating that the appraiser will see the value in the dentist's office, thus appraising it as a commercial property instead of a residential duplex zoned as R2. Does anyone know of hard-money lenders that can help? Any help is greatly appreciated!

Hello everyone, I've been reading some great questions and answers however can't seem to find any that are pertaining to my situation. Below is a snapshot of my situation - I'm hoping that some of your experiences can help me navigate how to get this deal done. 

• I currently have 3 investment properties. All three have mortgages, are cashflow positive, and are low maintenance.
• I have found a multi-use (zone R-2) property that I would like to convert into a triplex. Have already agreed to a sale price that is 43% less ($95,000) than the appraisal value. Ideally, I would need a $50k loan to fix it up, and then refinance it into a 30 year mortgage.
• I do not have 20 percent to put down to purchase the property.
• In order to maximize the property's potential and convert it to a triplex, I am estimating a need for $40-50K in rehab expenses. In the interim, I could definitely rent out one floor, and have my primary (I invest on the side) business occupy a space. 
• I have considered a cash-out refinancing, but the amount of equity that I have in each property would likely require me to combine multiple to come up with enough funds for the 20%. 
• I've spoken with several hard money lenders (2-3) and it sounds like there are possible options, however the property (as is) would be considered commercial and therefore that complicates their process/qualifications.

Has anyone encountered a situation like this? It is a no-brainer investment for me, but I can't seem to get past the 20% down hurdle. Any suggestions would be greatly appreciated!