All Forum Posts by: Justin Pumpr

Hi all,

Im about to close on my first flip property and am trying to decide between converting the property into a true 2 bed 1 bath, or keeping the property as a 1 bed 1 bath, but opening up the walls to have a large open plan living space. 

Tbe property is a duplex with ~800sq ft in each unit. No room to add extra sq footage. I know for a rental property a 2 bed 1 bath would demand higher income, but as a flip for a new investor to purchase, or somebody to house hack, which would be more desirable? 

if I keep it as 2 beds then the kitchen and living area would be pretty small, but if I removed a bedroom I could open up the whole front area and have a really nice and welcoming living space with a decent sized bedroom at the back. The layout in each unit would be indentical.

Any input would be greatly appreciated!

Hi all,

I'm looking for a contractor in San Antonio, Texas that has experience working with out of state investors, as I'm in California. If anybody knows of a contractor in that area, or close by in TX that would be great.

Cheers!

Thanks @Katie P. Patch of Land will lend 80% of purchase and 100% of renovation. Not terrible, but still a really big outlay for Bay Area properties (~$100k). I'm yet to here back from Fix n Flip.

@Stephanie P.

@Stephanie P. I gave that number a call, but Temple only lend to LLCs, or entities which I'm not looking to do at this time.

It seems everybody wants experience, but to get experience you need the finances in place. It's a big catch 22!

@Reginald Truss I don't have a specific property at this time, but I'm looking for a lender, so I'm ready when the time comes. That said here are the likely details:

Location: Oakland area

Money needed: ~$600-$650,000

Down payment: 15%

Property Type: Likely SFR

Cheers

Hi,

I'm looking for a hard/private money lender in California that can lend above 75% of ARV. I'm ideally looking for something closer to 85%, as everything in CA is incredibly expensive!

Thanks,

Justin

It's a 100% loan combo of hard money and heloc, yeah.  The $8695 is estimated closing costs (points, origination fees, title, escrow) for the initial hard money portion. You may be right on the refi cash to close. It'll likely be closer to $6k taking into account everything which means my cash to close and cash on cash is lower, but my biggest sticking point is the potential discrepancy in rental income. Is it all too close to call?

Hi all,

I'm considering purchasing a 4-plex, but when I'm running the numbers I'm getting some pretty different outputs based on worst and best case scenarios. This mainly comes down to the rental income. On the conservative side I'm looking at negative cash flow, but on the higher end I'm looking at ~$600/month cash flow (based on converting the 2x 1-bed units to 2-bed units. The high end rental income is definitely do-able and not very far fetched (it's possible it could be even higher), but there's no real way of knowing which way it would skew. Does anybody have any recommendations about this deal? I've attached my numbers in this link: 4-plex Analysis

To finance this deal I'd take a hard money loan for the purchase and use a HELOC for renovations and carry + closing costs and then cash out refi into a traditional. As the cash out is only 70% of the ARV, I'd need about $40k out of pocket at the end of the deal to close everything out.

I'd love to hear any thoughts on this!

Hi all,

 I am thinking of trying the lease-to-rent business model as advertised by Brian Page and I had a tax question. Can you deduce the amount you pay as rent as a business expense? So say I rent the property for $1,000 and then list it on Aribnb, can I deduce that $1,000 from my taxable income?

Thanks!

Hey all,

I've looked around a bit for this, but nothing quite answers my exact question. I'd like to do a cash out refinance on my primary residence for 2 reasons: 1) to free up equity to buy another property and 2) to remove PMI on my loan

I have $535,000 left on my balance and I'm hoping my house will appraise to at least $675,000 which would put me just below the required 80% LTV mark, so I can refinance without cashing out and also get rid of the PMI.

Questions:

1) Would I be able to cash out $100k of the equity? Or can I only cash out whatever the amount is that would take me to 85% LTV; I have an FHA loan, so 85% is the limit, but I'm not sure if that means you have to be below that limit before you can cash out, or not.

2) If I can cash out $100k which would put me above 80% LTV, would I have to keep PMI?

3) Do HELOC loans have similar restraints on LTV?

Thanks all!

I do have all of that yeah. But what if they DO all meet the requirements? Plus "only" 7 is still a lot of people for a small house with 1 bathroom. Also, I thought it was 2+1 for each bedroom?