All Forum Posts by: Joshua Levine

Ughhh sucks to be an LP on a Nashville, TN deal.  Oh well.  I'm sure it will recover.  Thanks for sharing, Ellie.  Good stuff.

Congrats on your closing....do you mind sharing your lender's info?

Great breakdown and thanks for sharing, Cory. Nice job. What kind of interest rate are you seeing when you get financing under your LLC?

$100/ month is $1200 / year. 

Therefore, wouldn't it be 12% CoC?

My colleague and I are looking closer to New Britain, CT, Natasha.  I work in Stamford as a PM.  

Thanks for the reply Harjeet.  That is very good to know.  Maybe it would make more sense to buy all cash then initially in order to do the refi as soon as the work is completed.  Do you agree?

Also,  has anyone had any luck getting the town to lower their tax figure on a home based on the before repair value?  The taxes on this home are way too high considering the current status.

Thanks

Josh 

@Brandon Sturgill  thanks for the reply. Appreciate the detail you gave here.   

Before the refi the cash flow would be about $650 a month and the Cash on cash would be about 15%.  The rents on each unit (it’s a duplex) should be $1100-1200 per unit.  

1)  why is that?  Just curious

2)  what would be typical?  We have capital to put more.  Would prefer not tie up as much in this deal but curious what you feel a lender would request in this case if they took on a loan of this size

3)  Very few but isn’t that profit along w all my original money?

4) rents would be $2200-2400 total in this deal. Haven’t run numbers on new cash flow after the refi just yet.

5)  In this case I’d have 25% equity on the home, a cash flowing duplex and $12,500 in my pocket.  My credit is 800+ before the deal.  Can’t imagine it would take a huge hit.  Partner and I have plenty of reserves.  Curious your thoughts on the deal otherwise as the initial cash flow and cash on cash seem very strong to me at least.   Would you structure differently?  Buy all cash and then cash refi?

Thanks again

Hi guys, I'm a newb.  Trying to understand the numbers on a cash out refinance while also explaining it to my wife so she can understand it as well.

So let's say I find a home I want to buy.  Home stats

Purchase Price - $60,000

Down Payment - $12,000 (20%)

Initial Loan Amount - $48,000

Closing Costs- $5000

Repairs - $35,000 (using cash for repairs)

Total all In costs = $52,000

ARV- $150000

I then want to go to the bank and do a cash out refinance (75% LTV which by my numbers would be $112,500 and my equity in the home would be $37,500).

$37,500 - $7,500 = $30,000

Does this mean the bank would give me a check for $30,000?  Am I missing something here or do I have it about right? Thank you.

Personally, I think I would speak to a lender about refinancing your paid off asset and using that funding to support your next investment (all while saving for another down payment).  Within 6 months it sounds like you could have 4 homes (your original 2, the new one purchased using the refi money and then another purchased with savings).

Eventually you could sell several or all and use the funds to purchase a mid sized multi family with the help of a 1031 exchange (avoid taxes on your cap gains).

Thanks Robert.   I am impressed with your numbers above.  Do you use a property manager?  Just curious if you do or self manage. Thanks!