All Forum Posts by: Jason Pavloff

I'd look for a Real Estate Lawyer who specializes in Condo Regimes.  They should be able to tell you approximately how long this should take. 

Thanks Rob, if I had a second property, anything like a SF or multi, I could have done a cash out refi. But Texas has this crazy cash out refi constitution laws, inside that there is a Texas 50(a)(6) which is ridiculous. If you started the house hack here in Texas it made it really hard to keep your first property and BRRRR.

For over the past 11 months I've been tiring to figure out how to keep my first property, a house hack duplex, and somehow pull out cash/equity to BRRRR. However, it was damn near impossible, well at least here in Texas! I tried calling 10-12 different loan officers who first told me, "ohhhh no problem," only to be let down. It turns out as most of you may or may not know, it just isn't possible to do a cash out refi due to the Texas 50(a)(6) law, since it was my only property.

Well then one day I saw how a few, not many, were doing  Condo Regimes on their duplexes..? And that got me thinking... really thinking! I first found out not only could I get more money for selling my property... from  $500K-525K -> for selling as a duplex. To $620K -650K if I spit each side into a condo and sell for $300-325K a side! This got  my wheels  turning even more! 

Here is the GOLDEN TICKET. One morning I was thinking... Well if I split the property into a Condo Regime, where each unit is it's own unit with it's own loan. Why couldn't I know do a cash out refi now on just the side, the side I live on?!?!  Well according to a few lenders, Quicken being one of them.  Why yes, yes I can... Brilliant idea! Now it took about 20min to explain what I was doing to the loan officer, because this  almost is never done in the loan industry on two different levels.

 I've  basically got one loan for $325K with Pennymac, now after using a lawyer to split the property into a Condo Regime, I have to re-apply for two different loans one of each side for $162K. Where I will then do a cash out refi on side B, the unit I live in. Thus keeping my original property and giving me money to find my next. 

Now my next move, if I couldn't do this cash out refi, was to sell both sides which I've owned for 2 1/2 years and look for an apartment complex around 15-30 units. I've been looking into literature on what to look for do's and dont's for newbies in this whole process. If anyone knows if Brandon Turner posted a write up on this, that would be greatly appreciated. @Brandon Turner

@David Ivy I appreciate the recommendation, I found someone here in Austin shortly after I left you a note on Friday. 

@Fred Heller After I divide the property up into 2 separate condo units, I will then sell each side. I bought the duplex for 345K two years ago. I will be able to sell each side for somewhere around 290K-320K a side with the current market comps. Where if I were to sell it as a duplex the current comps are around 450-525K. That's around 100K difference I stand to make. 

2 condo units = 580K-640K. 

duplex = 450K-525K 

@David Ivy

I'm currently looking for a Real Estate lawyer who can convert my duplex to Condo, I've had firm in Houston who offered $6800-$8000. 

I've been told I can have it done for $6000 from others. But I'm having  troubles locating any other firm who can do it. If you know of anyone please DM me.

I'm located in Austin, TX, but I'll take anyone even if it's Dallas, Houston, or even San Antonio.

Thanks Matt. 

@Jonathan Halverson My problem is that this MHP has 10 lots which 9 of them have a lot rent of $150 a spot. The 10th spot is a shed collecting only $50 for rent/mo. NOI is on average 36K yet they are selling the Mobile home park for $336,000. there are only 8 MH owned by the property. Both methods I used above dont come close to this valuation.

I have a quick question about buying my first mobile home park and saw a few things I had a question on. It's about how to evaluate the property value.

1.) There is the: NOI / CAP = $$$ park value
2.) Also can use: $$$ X CAP = NOI

I have a property that has an average NOI of 36K, which the property taxes and insurance have been pulled out from the value. However some of the homes are lease to purchase and are included in this NOI. I have heard this is a no no, and that lot rents should only buy in the NOI. Could someone please give me your advice on which is the industry standard on evaluating the property value.

Just for the record you can get into an owner occupy multifamily Duplex with just 3.5 down.