All Forum Posts by: Justin Owens

@Shiloh Lundahl Huge congratulations on the success. Magnificent indeed. Perhaps it's time to meet up for Thai food again.

@Bill Exeter The man himself! I should have mentioned you as well when I posted that link, as it was your post that pointed it out.

@Terry McPherson I do not believe you can 1031 a flip. The property must be held for rental investment. See this thread: https://www.biggerpockets.com/forums/104/topics/144238-1031-exchange-on-a-flip 

I agree with much of what was said here. I chose the BRRR method because it would take me too much time to save up for each down payment buying TK. By doing BRRR I can reuse the same funds over and over. I'll also echo that a true BRRR where you get all your money back to include carrying, financing, etc. costs is tough, the cash outlay is much less than 20 to 30% required for a turnkey down payment. Yes it's more time and effort but I can grow the portfolio faster.

@Jake Saliba I am using Jayson Bates with Paramount Residential Mortgage Group. I found him on a podcast he does and after trying several others I reached out to him. He sounded very knowledgeable from his podcast and I figured if anyone could do it, he could. As @Chris Mason mentioned, it's not a thing most lenders know.

We can go to 75% LTV with a new appraisal but cannot exceed the purchase price plus closing costs. So a true BRRRR to include the rehab isn't possible but we didn't have much in the way of rehab anyway.

If you ever come across anything in Arizona please send it my way

@Chris Mason Your expertise is greatly appreciated. Thanks for clarifying all the "dings" we are taking. I just wanted to make sure that if we properly seasoned (6 or 12 months total) we couldn't get better rates but that isn't even mentioned. By proceeding with these refi's we can unlock the HELOC funds and start searching for the next deal.

Short question: What is the normal spread between primary residence mortgage rates and investment rates? Are there more fees with investment properties vs primary residences?

Background: we purchased 2 BRRRR properties (Mesa, Arizona and San Tan Valley, AZ) via a HELOC in February and are trying to refinance. Of course the HELOC rate is much lower than the 5.5% we are being quoted by the lender doing the refi. I see primary residence loans in the high 3% and low 4% range with no fees. I am paying about $3k per property in fees and closing costs (not prepaids). I am just trying to make sure this is what it costs for investment properties. One loan would be about $65k and the other would be about $90k. I get smaller loans cost more than larger amounts but this much?

I shopped around long and hard to find someone who could refi before the 6 month seasoning period was done. He is doing it under the delayed financing exception and we should be able to get back 100% of purchase price plus closing costs. (Rehab on one property was minor $5k and sweat equity, nothing on the other). I am wondering should I float the funds on the HELOC through the 6 month or even 12 before I try and maybe it will cost less or just bite the bullet now to lock in permanent financing.

Is there a site where we can find investment property rates like bankrate.com where we can find rates for refi's for conventional loans on investment properties?

Any advice is appreciated here.

@Paul G. Thanks for sharing and reminding me of the downsides of a condo vs. townhome/SFR/etc.

Buying it is a chore with financing and selling it will be just as difficult for the buyer to obtain financing. If it cash flows great and you don't mind hanging onto long term it might work but there is no quick exit but a cash buyer; and they usually expect a discount.

Best of luck with your quest!

Welcome @CJ Ashton. I have been looking for cash flow for about a year now and nothing has popped up in Gilbert at all. I picked up one in San Tan Valley and one in Mesa. I too would like something closer to home so the search continues.