All Forum Posts by: John B.

Thanks Will. Yes, demand is high and 1900 is somewhat conservative for a 4Br here. I would actually consider listing for 2050 - 2100 to start. 

B/B+ 3-plex in A neighborhood, small, upscale town in upstate New York, very stable housing market, 9/10 school district, 3-4% appreciation over last decade, 10-13% appreciation over last year. Rental demand fluctuates but is currently very high as people look to get out of NYC.

List price $425k, down payment 25% + closing costs $9,000 = total cash $115,250. Conventional mortgage 30 years @ 4%

Rents:

• 4Br/2Ba currently vacant, market rent $1900
• 1Br/1Ba currently $900, increase to $950
• Studio currently $600, increase to $650
• -----------------------------------------------
• $3500

Expenses:

• -$1522 payment/interest
• -$640 taxes
• -$150 insurance
• -$200 repairs/maintenance
• -$350 capex
• -$280 vacancy
• ----------------------------------------------
• -$3142

Cash flow

• $358 per month

CoCR = 3.7% Cap Rate = 5.2%

My story:

• Goal is long-term (8-10+ years) buy and hold investor. I do not need cash flow, as I have adequate W-2 income. Will likely funnel cash flow back into mortgage paydown to accelerate equity build. Purchase price is likely current full market value. I want to take advantage of historically low interest rates locked at 30 years and get into real property with the possibility of inflation coming at some point.

B/B+ 3-plex in A neighborhood, small, upscale town in upstate New York, very stable housing market, 9/10 school district, 3-4% appreciation over last decade, 10-13% appreciation over last year. Rental demand fluctuates but is currently very high as people look to get out of NYC.

List price $425k, down payment 25% + closing costs $9,000 = total cash $115,250. Conventional mortgage 30 years @ 4%

Rents:

• 4Br/2Ba currently vacant, market rent $1900
• 1Br/1Ba currently $900, increase to $950
• Studio currently $600, increase to $650
• -----------------------------------------------
• $3500

Expenses:

• -$1522 payment/interest
• -$640 taxes
• -$150 insurance
• -$200 repairs/maintenance
• -$350 capex
• -$280 vacancy
• ----------------------------------------------
• -$3142

Cash flow

• $358 per month

My story:

• Goal is long-term (8-10+ years) buy and hold investor. I do not need cash flow, as I have adequate W-2 income. Will likely funnel cash flow back into mortgage paydown to accelerate equity build. Purchase price is likely current full market value. I want to take advantage of historically low interest rates locked at 30 years and get into real property with the possibility of inflation coming at some point. 

In the following scenario:

-if I get hard money loan thru my LLC for purchase and minor rehab

-then want to refi with bank for a personal (not thru my LLC) 30yr fixed loan to keep for rental property

Can I accomplish this without having it be a "transaction sale" from LLC to myself?

I am asking because I understand that most HML prefer to loan to LLCs and banks prefer to loan to individuals (not LLCs). And creating another transaction would obviously incur extra costs (NY requires attorneys to close). Maybe I am overthinking this but it has to be a somewhat common situation. FWIW, I have found that some HML will do both to make it simple but I am asking about HML, then bank.

Thanks in advance for the help.