All Forum Posts by: Jeff Bisgier

Thank you, everyone!!! I'm breathing much easier now. I feel dumb that I went into this without knowing all of the facts. I should have spent a lot more time on BP!!!

A bunch of you mentioned the cash out refi. That sounds perfect. So if I'm understanding it correctly, I'm buying the house for $79.5k. If I put $30k into the rehab and the house appraises for $180k, I should be able to get a cash out refi of $135k (based on a 75%LTV) without any down payment? Am I correct there? Also, does that same "seasoning" period of 6 months apply to a cash out refi?

Thank you again everyone. You all are so helpful! This site is great.

@William Murrell & @Andrew Johnson Thanks for the info guys. I guess in my panic I didn't even think about a conventional mortgage. I will check around with other banks too. What about the down payment though? Wouldn't I usually have to put down a larger down payment for an investment property? Like 25% or there about? With most of my cash sunk into this house, that will be tough, unless I'm looking at this wrong.

@Luke H. You gave me some food for thought there. Thank you. I guess I really have a lot more to learn. Like I had said, this opportunity for this house came up so quick, I felt I had to jump on it, even though I wish I had been more prepared.

@Luke H.  When you say "sell it as a turnkey property", I'm assuming you're saying to just rehab and flip it? Also not sure what you mean about selling the note. As I said, I'm a newbie.

Thanks!

Hi Folks. In less than 24 hours, I am closing on a house that I purchased via an online auction. The purchase price was $79.5k, all cash. I'm a total newbie to real estate investing and was in the process of learning all I could when I stumbled on this house just a few days before the auction. I happened to be going to my bank that same day, so i asked them about getting a mortgage (before I had read the fine print on the auction site that said this must be a cash sale). The bank told me that with an auction, you usually could not do a mortgage because of the time it takes and that most auctions are cash sales.

I told my banker that I was looking to rehab the property and then rent it out. I have just enough money in my savings account to cover the purchase and rehab, with a little left over for any contingencies. She told me that after 6 months, I can come in and get a home equity loan and pull my cash out and replace it into my savings account. She said the rehabbed house should appraise high enough that getting back my cash wouldn't be a problem. 

Today, out of curiosity, I went to the bank's website to look at the current home equity loan rates, and started reading the terms. There, on the second line, it states, "Equity Credit Loans are available only for 1-2 family owner-occupied properties." I immediately called the bank and spoke with her and she said, "Oh. Yes. The home equity loans we offer aren't available for rental properties." She really screwed me good. I'm mad at myself for not looking into this deeper, but I trusted her.

Any advice on what I can do to pull my money back out after the rehab? I'm literally in a state of shock over this. I can't have my life savings tied up this one house.

Thank you for any advice!!!

Hi Folks!

Hope you all had a happy new year! Just figured I'd give everyone a quick update since you were all nice enough to give me so much good info and advice. I should be closing this month (January). The seller wants a January 13 close date and my attorney is pushing for a January 27th date so that we can be sure we have everything title and deed related complete. Hope my attorney wins this battle. I'll update again as soon as I close. Fingers crossed that all goes smoothly!

@Owen Dashner To answer a few of your questions... The foundation is actually stone. The house was built in 1920. I went back over to the house about 2 weeks ago and did another walk around the outside. I could not find any significant issues with the foundation (I'm no expert though). Drywall covers the basement walls inside, but there are no water stains or mold anywhere that I could see. The drywall looked to be in great shape. I wish I had looked closer at the plumbing to give you a better answer, but from what I saw, under the kitchen sink was PVC and there were some copper lines leaving the boiler. The breaker box was an upgraded 200 amp service. Asphalt shingle roof. No water stains on attic ceiling (drywall ceiling). The boiler is a Peerless MI-04-STDG-WPC. I've been trying to search online to find out the approx age but haven't had much luck. My utility company won't hook up the gas meter until a pressure test is done, so that part will need to be done. Thanks, Owen!

@Matt R. Thanks for that comprehensive list on what order to tackle projects!! That's great!

Thanks again to everyone else. I've reread every response in this thread at least 4 times already and it just keeps helping me. It's the gift that keeps on giving!! LOL

I'm in the process of copying and pasting all the great information you folks have given me into a word document, along with all of the links to different forms and websites and books. There's also a few people who asked some specific questions that I'll be getting back to asap. I just want to thank everyone again for taking the time to help me out. I was feeling very overwhelmed when I wrote the original post and I don't feel so alone now. The more I can educate myself, the more comfortable I'll be, and there is so much education on this website!

Thanks again everyone! You all are great!!

Wow!!! You folks are the best! I was out all day today and just logged in and can't believe how many helpful and encouraging posts there are on this thread! I am going to read and re-read everything you all wrote later tonight when I have some free time.

THANK YOU ALL!!!!!!!

@Matt Jones Thanks for some really good information! I will look for that book and definitely look for those podcasts. Linda DellaRipa also recommended and uses Cozy.co. Meghan Martinez also had the name of another company in the link she gave me. I'm glad to have 2 companies to check. Also, thanks for the info on the forms. I appreciate all the info you gave me!!!

@Account Closed I left a message for my agent about an hour ago requesting that he check the comps and let me know what he thinks the ARV would be. As far as this house goes though, I like the idea of getting rental income for years to come, although the thought of a quick flip profit is tempting! It is a bit tough to find a decent house to flip in my area. Plus, I'd estimate approx 85% of the homes in my area have septic systems and well water, which is a big unknown when purchasing foreclosures that have been winterized. A new septic system can run you $25k - $30k. This house I just purchased has municipal water and sewer. That makes me more comfortable having a renter in it.

 Thanks, Meghan!!!!