All Forum Posts by: Joshua Ibarra

Thanks in advance for any help!

We bought 4 units a year ago here in Kansas City that needed much work. The lot is technically zoned for single family but 3 smaller houses were built 40 years ago and are grandfathered in. After about 6 months, we finished rehab and starting putting tenants in place. 

All four units are rented out bringing in $2,200 a month between the 4 units. We think it is valued around $200,000 and currently only owe our hard money lender $105,000 as we pay monthly on interest. However, we are coming up on 1 year and he wants his loan back. 

We have talked to 2 different banks locally who will not cash out refinance because it isn't zoned commercial so it is tough to appraise.  What is the best option to refinancing at this point? Try to get a small business line of credit to pay him off through Lending Tree? Raise $100,000 between family and friends? Is there a bank that is interested in this loan? We are currently paying 12% so if we could get something lower then that we would be able to pay it off in the next 2-3 years. 

Any advice is greatly appreciated. 

I've got a local bank I'll PM you that has been good to us so far here in KC!

Where in Kansas City are you looking to invest and what are you looking to invest in?

Happy to help if I can! 

I have worked with a few different agents.  What are you looking to invest in here in KC? Fix and Flip or are you looking for Turn Key? 

Nice post Jason! I'm right there with you! That book is a game changer! Thanks for the recap as it has been a bit since I read it and I have starting to buy liabilities and not assets! I needed this reminder!

Thanks,

Hi Guys!

I recently flipped a property that has 4 houses on over 1 acre of land. It is here in Kansas City about a mile from the football and baseball stadiums, (Royals and Chiefs).  We planned to renovate them and then run them as Airbnb's.  They are small houses, but perfect for a weekend in town with brand new everything inside and out. (Would sleep up to 20 between the 4 houses)

However, we ended up putting too much money into the properties with unexpected electrical, plumbing and roofing needs. We no longer can cash out refinance to keep them as part of the BRRR method. We aren't upside down but definitely not at 70-75% to manage to hold them. I have never sold multiple units and was curious what an investor is looking for. It is technically a single family home so would you list with a residential agent or sell on your own to network of investors?

If an investor were to buy 4 houses on 1 acre, would another investor be more interested in having it turnkey with tenants in place so I can show them rental income or sell it vacant with an idea of what it could rent or airbnb for? What information would be good know to put on a flyer?  

Thanks! 

Hi Sam, 

That's a great idea. What area are you looking for? I live here in OP as well and invest across KC. Would love to chat more about your strategy. I think a single family home is good start as that's how I got started  but like Lee said getting a 4 plex would allow you to make use of house hacking immediately. 

The financing will depend on the bank and what type of loan they are making. If you are wanting to BRRR, then you can use your heloc to purchase and rehab a property or a combination of that and hard money to find a duplex.

I work with a bank that will Cash out refinance once a tenant is placed and will lend based off of the asset and income production, not based of my debt to income ratio. But you have to find the right team members to scale the business. Let me know if you have additional questions as this strategy is how I was able to secure my first 10 deals using my first HELOC.

My partner and I are open to still meeting if you are still planning on it. Would love to connect with everyone if possible!

@Blake Brose I've currently done a few cash out refinances with Great American Bank. Matt Hoefer is my contact. He lends on a commercial note though as long as you have a renter in there but doesn't require seasoning period. Biggest drawback is it is only a 5 year loan so going to have to figure out long term solution at that point.  I've also been talk to Bank 21 and they are willing to do that same thing. 

Let me know if I can introduce you as I'm happy to help. Thanks!