All Forum Posts by: Karl Hudson

Thank you for the insight and considerations. I hadn’t initially factored in the additional value, as we’ve already made significant improvements and updates to the property. I viewed any extra value in regards to the roof etc. as a potential bonus rather than a primary focus. Currently, we have $220,000 in equity and value added.

I’m inclined to hold off on a refinance cash-out until I secure another deal where those funds can be effectively utilized. Additionally, I’m not keen on HELOCs due to their variable interest rates, if I understand them correctly. I stick with fixed rates if I can help it.

The parking lot is currently causing significant flooding, along with numerous cracks, potholes, and tripping hazards. To address these issues, the lot needs to be properly sloped to divert water away from the building. During heavy rains, which are common in Florida, tenants almost need to wear waders to get from their cars to their apartments.

The roofer does offer financing, but the rates are comparable to what we can obtain elsewhere. However, if we pay in cash, they will offer a 7% discount. I plan to use funds from the business loan to take advantage of this discount. Regardless, the project will be financed with the intention of paying it off once I secure my next deal.

Hello BP Community,

I have a question regarding my triplex in Ocala, FL. The property needs a new roof, a new parking lot, and a few other minor improvements to enhance its performance. While I have sufficient liquid cash on hand, I prefer to maintain liquidity as I'm actively seeking my next deal.

The property currently cash flows around $1,800 a month after operating expenses. I'm considering a business loan of $35,000, with my credit score at 748. The offer I received is a 9% interest rate on a 5-year term, resulting in a monthly payment of $726. There's also an option for a 7-year term, but it comes with a higher interest rate.

I have the flexibility to pay off the loan without penalty, which I plan to do after securing my next deal and cash-out refinancing this triplex. My main concern is whether a 9% interest rate is reasonable in the current market conditions given my credit score. Do you think there are better rates available, or is this typical for business loans at the moment?

Appreciate any insights or advice!

Thanks,

Karl

Hello everyone, I want to make sure I’m not over looking anything on this. So I have a triplex that was built in 1981. Over those years it has been extremely well maintained with the original bathrooms and kitchens still in place. The tenants are very happy with the way it is. However, one apartment has become vacant. The tub is on it’s last leg and needs to be replaced. The kitchen, although it’s been well maintained, is starting to show it’s age. It’s not real wood like in most 70’s kitchens. It’s the compressed wood from the 80’s. So unfortunately we are unable to just spruce them up with new paint and fixtures. I’m debating on a complete renovation of the unit, new kitchen, new vinyl plank flooring, a mostly new 1.5 bathrooms, and an interior paint job. We would be looking at $11,400. Currently the apartments are renting for $1,025.00. With the renovations I believe I can list it somewhere between $1,250 to $1,400 a month.

#1 Is this a good idea? Should I do minimal repairs vs a more full on renovation?

#2 I have plenty of cash on hand but would like to stay as liquid as possible for any possible deals. Should I finance the renovation or just pay cash for it? Monthly payment on that would be around $188 a month.

I’m thinking this will also raise the value of the property which already has a significant amount of equity in it. In the three years since purchasing it, the equity almost now equals the price I paid for it. Any thoughts on this appreciated. 

 I had the same thought as well in looking at this. Great advice that I will definitely take into consideration. Thank you Michael. 

Hello everyone, 

I know we are in the thick of the tax season. However, our CPA unfortunately passed away and I am in need of a CPA who is available at this busy time. My immediate need is an S-Corp entity that I need to have filed asap. I am aware it is passed the deadline. We also have an LLC and personal taxes to complete. We own multi-family and run two small businesses. If anyone is able to assist please message me here.

Thank you, 

KH
  

Hey there, I am in need of a CPA that has expertise in a few areas as I have a number of things going on from multiple streams of income. I own multi-family real estate. I also own a custom cake business with my wife, another small business that has contracts with multiple cruise ship lines and a full time career in the music industry, dealing with royalties on album sales from our record label and multiple tours throughout the year. My former business coordinator and CPA unfortunately passed away and I am in need of someone to help me manage all that I have going on. I need a CPA that is available year round as I may need to be advised throughout the year. Preferably someone in Orlando but am open to a great CPA anywhere in the country. Thanks 

@Lance Lvovsky I clicked send too soon. That corporation then distributed paychecks to myself and other singers

@Lance Lvovsky My work in the music industry is world wide. However it’s all paid to two corporations I have setup in FL.