All Forum Posts by: Paisley H.

I purchased a property in my name because the seasoning period in Maryland for most cash-out refinance loans is 6 months only if the loan is to an individual; the seasoning period is 12 months if the loan is to an LLC.

Does anyone know of a bank that will do cash-out refinance to an LLC on a property in Maryland?

I was thinking of purchasing an umbrella insurance policy to cover the property until I get the refi-loan, and then transferring it into an LLC. Has anyone used umbrella insurance policies to cover properties that they hold in their own name?

So there are a few reasons I decided to pass after running the numbers. Rent is $3080/mo, not much potential to increase rent, taxes and insurance are high (@$1000/mo), after property management there is not enough money left for capex or maintenance. I could cash flow the same amount on an SFR that costs half the price, and get a better return.

Also, this is a small college town, and multi families sit on the market for a long time. I worry about exit strategy and while I know we can't bet on appreciation, we can certainly buy in markets that are more likely to appreciate. I was only looking in this town because it's the best market within driving distance, but after doing more research I've decided to look for SFRs in bigger markets with better margins. 

Thank you all for your input! 

Thank you all for your help! I have decided to pass on this one and wait for a better deal.

I found a quadplex for $300,000. Rent is $3080, so it meets the 1% rule. I would put 20% down for 30 years, so it would cash flow about $288/mo by the 50% rule (less than the ideal $100/door). But it was built in 1998 and is in pretty good condition, I don't think repairs will be excessive.

The thing is, when I enter it in the Bigger Pockets rental property calculator, I can make it look great or I can make it look awful by adjusting the %s for capex, repairs, and vacancy. At 5% vacancy, 5% capex ($154/mo), 5% repairs ($154/mo), no property mgmt, the return is over 6% and cash flow is good. But increase the capex and repairs from 5% to 10% and it goes negative. 

I just don't know if I'm overanalyzing this, it meets the 1% rule, it's a nice property in a good area. Should I wait for a better deal? I could purchase two turnkey properties for the same amount that would cash flow a similar amount, according to the turnkey company of course. And I think the turnkey SFRs would be easier to sell in an exit strategy scenario and would be more likely to appreciate.  

thanks so much. 

Do you think it's better to have an agent in my hometown that I already know versus or is it worthwhile to find an agent in the area I'm buying, which is a 90 minute drive?

I found a quadplex, for sale by owner.. I am ready to make an offer, but not sure how to go about it! Do I just call her up and tell her my number? She told me she's asking $179k, my top price is $150k, should I offer that or offer less and leave room to negotiate? Is $130k too low? Do I need an agent? I prefer to not have an agent since they just cost a few extra thousand dollars..

I'm thinking of doing a 30 yr mortgage for cash flow purposes. The rents are $1900, could possibly increase over time to $2000-2050. Mortgage would be $650, so it still cash flows under the 50% rule. I also confirmed this with a line by line estimate of the expenses: tax, insurance, property mgmt, capex, maintenance. Am I missing anything?