All Forum Posts by: Ki Lee

I've heard many people mentioning the BRRRR strategy- buy, repair, rent, Refi, repeat.

I have question about the refi part. It is my understanding that getting equity out of rental property is very tough. The loan standards are more stringent, higher interest, and lower LTV. Is this not true? Are there easy ways to get equity out of rental properties?

Thank you!

When considering doing a 1031 exchange, what kind of fees and how much can one expect to pay? Does the transaction have to be facilitated by a third party? If so, who is this third party that will facilitate it?  I do understand that there is some time constraint from selling the property to buying a new one, but I wanted to know more details about what it really entails.  

Anybody familiar with the Chicago market?

I have a 3-unit rental property in Logan square(somewhat less desirable part of Logan square) and was considering converting the triplex to 3 individual condo units and selling them.  

There are no recent comps in the area for condos of a small multi unit building.  Any opinions on the feasibility of this idea? Any idea where I can get some good recent comps?  

Also, are there big challenges with this as far as permits/zoning regulation?

When doing a 1031 exchange, does the newly purchased property have to be equal or greater value than the sold property?  

Or is it that just the profit from the first property must be all invested in acquiring the next investment property?

Example- let’s say that Joe sells a property for $650k. Joe still owed the bank $300K at the time of the sale,  so he gets paid $350k.

Now will joe have to buy a new property that is at least $350k(his profit) or $650k(value of the sold property) in order to satisfy the 1031 exchange?

From my understanding, for traditional loans for single family residence, they primarily look at credit score and debt-to-income ratio.

Specifically, I was wondering if different lending standards are used for multi-unit investment properties where the potential profitability of the property trumps some of the other factors.  I have excellent credit, but unfavorable debt-to-income ratio.  If I find a property with excellent cash flow potential, will I have a good chance of securing a loan(albeit a higher interest rate) even though I have undesirable debt-to-income ratio?  I am willing to put down about 30% as down payment.  Does it just vary from lender to lender?  If so, any recommendations on which lenders?

Thank you. Now @Jason D. mentioned that I should have a lawyer set it up.  Can you elaborate on why? It seems like it can be set up personally online right?  

I have 2 rental properties in Utah and Illinois. One is a single family home and the other is a triplex. I bought them using my personal name. I do have umbrella policy to cover potential liabilities. Is it still necessary to have these under LLC? If so why? Should I get an attorney to do it or can I do it myself? And having bought the properties under my name originally, would it be complicated to transfer it to an LLC?

Thank you! Someone mentioned that I won't be able to deduct interests and fees for HELOC whereas I can for hard money lenders, offsetting the cost a little bit(HELOC is still cheaper, obv). Thoughts on that?

Hello, newbie to the site here.  

Quick question in regards to funding flips.

Instead of using hard money lender with high interest rates, I'm considering taking our HELOC from my primary residence to fund my flip project to enjoy much lower interest rate and longer term where I don't have to pay back right away and can use the money to fund future deals.

Are there any good reasons to NOT take this approach and opt for a hard money lender instead?  Thanks in advance.