All Forum Posts by: Kyle Leygraaf

Thanks! I appreciate that. I’ll start calling around and seeing what options are out there. 

Hello - I purchased a duplex late last summer and have invested significant equity in the project. I refinanced my initial mortgage in April (no cash out) due to the lower rates, and my new appraisal came in significantly higher than my purchase price (16%, or $66k). I am trying to get a HELOC to unlock some of that equity for more repairs. I heard from one lender than their HELOC would be capped at 85% LTV based on purchase price for the first 12 months after closing. In other words, they would not honor the "value" of a new appraisal until a year after closing.

Does anyone know of any banks, credit unions, etc. that will perform a reappraisal after less than a year for a HELOC? I heard a BP podcast from a few years ago where someone found a bank willing to do this. In a worst case scenario I could wait until a year passes, but it would be nice to continue to get some renovations done before then.

@Alex Franks Hello - bumping this post. I have lived in Charlotte for years, but I'm a newbie when it comes to investing. I would like to get involved in a local REI meetup. What are some you recommend?

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Charlotte.

Purchase price: $413,850
Cash invested: $60,000

Duplex - Buy, Fix & Hold Strategy. Living in one side, and renting out the other. House is located in a super prime location and was immediately able to be rented, but needed significant work to improve. Scale of work is ongoing but includes significant foundation repairs, new siding, new landscaping, as well as minor electrical and plumbing.

How did you find this deal and how did you negotiate it?

Off market acquisition. House was listed about 9 months earlier and taken off the market. I reached out to the owner directly and structured a deal whereby I 'offered' more than his asking price, but had him pay maximum allowable closing costs so preserve as much of my cash as possible for repairs.

How did you finance this deal?

Conventional mortgage as well as a personal loan to help with the down payment. Duplex required a 15% down payment with conventional mortgage, and the lender required foundation repairs to be made before closing. The existing owner would not pay for the foundation work, so I invested an additional $14k into the foundation before owning the home.