All Forum Posts by: Jason Morrison

thanks Todd, I understand that 1% is not set in stone.  I am just starting to look at this stuff, i still need to find a bank that is good to work with and make sure i understand how they are going to value the property.  for the last part of the question i asked, is there some mechanism to do this without having to come up with 150k in cash for the initial purchase?  I could finance it at 150k and just put 30k down and then do the refinance as soon as possible but them i'm going to end up with double the fees. 

is it possible to skip the rehab step?  here is the scenario.

i have a property i can buy for $150,000.  it has a business and 3 apartments that rent for $2k / month total.  all units have been rented for more than 6 months at that level.  following 1% rule, the property should be valued at $200k.  if i could round up $150k in cash, i could buy the property and then immediately refi for 70% of 200k = 140k so i'd only tie up 10k plus fees.  better yet would be to find a way to do that without having to round up the 150k.  are there options to achieve this?

Total Newb here...   

I'm thinking about purchasing a building in the down-town area of my small town. It has a commercial space on the main floor that has had a nail salon tenant for about 7 years. The upstairs has 3 apartments, 2 2bdrm and 1 1bdrom. I'm wondering what additional considerations need to be made when thinking about a a commercial building instead of a residential property. The numbers seem good to me but I'm worried I'm missing something. Total rent is $2000, purchase price would be ~$155,000, taxes $3700. I'm not sure what insurance would be. The county has its value shown at $200k. Is there any way to do a BRRRR on a property like this with tenants? can I just refinance it after a year and push for a higher valuation based on the existing rents?