All Forum Posts by: Ken Eck

I am looking at creative financing options (low to no- money down). I am trying to scale my protfolio, limit my mortgages  and trying to not lock up much liquid captial into DPs so I have been reading up on Blanket Loans and had a question form in my head.  

I have a property that has 30% (I know not a lot but hear me out) equity and I was wondering if it was possible to refi this existing property into the a blanket loan and bring what ever the difference would be, if any, in cash to keep the loan at a 70% LTV level?

Is it feasible or should I drop it and move on.
   

My lease has a similar addendum regarding the yard and the trash minus the fine specific language. 

Got a little more information from my PM, the POC I was using no longer works at the company and left sometime in that 3 week window between initial notification and me receiving the fine. I suspect this is the root cause. The PM then told me they would be holding the tenants responsible for the fine.

@Rebecca Knox Hey Rebecca! Thanks I am going to set up the alerts now.

Thanks for the replies!

I think I’m going to contact the city personally as well and talk to them about the situation. The fine is only 250 but it’s the principle of it; 3 weeks notice to get it corrected but nothing was fixed. 

I also don’t really know how I feel about them getting the notices instead of me. I like being in the know when it’s my money.

I am an OOS investor. Last month I received a notice from the city of Milwaukee regarding trash and litter at the property. Being OOS it was already about a week after the fact.

I promptly send the notice to my Property manager who says they’ll take care of it. Well last week the I received another notice from the city but this time it is a fine.

I again sent the notice to my property manager and was told “we will contact the city and ensure the city sends us the notices and not you.”

I then asked who is going to pay the fine. And was told “ if the city doesn’t waive it it’ll go on your property tax bill for the year.” My response was;

“I will not be the one responsible to pay the fine as I reported the incident over a month ago and it never was resolved.

This was either due to a lack of oversight on your company’s part as the PM or the tenant is responsible for not following their lease in regards to trash and rubbish on the property.”

Was this an appropriate response to my property manager? From everyone’s experience what is the likelihood they pay the fine?

Update: I had the appraiser in the other day. As-is value 59k. ARV 105-115, conservatively ill stick with 100.

I think I am going to keep it. Is it the best deal out there, no. Yes, it will carry a bit of risk, and I will leave cash in the property if my estimated numbers remain what they are but it would end up being less cash (about 7%, 18 v 25) than what would be needed for a DP on a conventional loan. As a long term investment it will preform, just need to get over that short term hump. 

Ill post some updates as I progress with it. 

Thanks all! 

@Mike Cumbie I am investing in Milwaukee. I now live in Olympia WA.

I had the engineer in on Saturday and he from what he found 3 of the 4 walls need to be excavated and reinforced. The 4th wall can be reinforced from the inside. It will also need to be completely resealed and the major gaps filled. It is a cinder block basement.

My next steps is running actually estimates from contractors. right now I am running worst case numbers off of what the seller has had estimated for him previously and what the engineer concluded.

With the type of cash flow that it makes, less taxes and PM Fees and Cap expenses I would be able to recoup the money left in the property after refi fairly quickly. There is still a good possibility I get the 55k purchase price out of it at least.

@Todd Rasmussen I did know about the foundation but it’s a little more substantial than originally thought. I did not know about the roof at time of contract, that was found upon inspection.

You’re right equity will be very lean but the cash flow makes up for it. Especially since the cash flow will essentially pay for the repairs and then some.

I did know about the foundation issues when I put it under contract but after seeing the engineer report it might be more than I want to deal with.

@Bob Okenwa

Yep inspection and some how I was able to work an appraisal contingency. Which is weird for a cash purchase.