All Forum Posts by: Luke Slapa

Update: Have two pre-approvals for cash out refis. I started looking into more asset based lender and had much better luck. Looks like im back on the right track. 

I feel I wont be using biggerpockets again from all the doubt and harsh judgement with very minimal actual advice.

@Steve K. It seems that you have painted a completely different scenario in your head that what the reality is. I have plenty of cash on reserve. After reading Brandon Turners book on investing with low or no money I thought I would give a crack at it. Also, I have two pre approvals today for a cash out refi. I am going to be cash flowing $300 a month (allocating for insurance, tax, repairs, CAPX, vacancy, REFI) on an investment with zero money down.  It is renting out at over 3% the purchase price.  Just because I am getting creative and not doing it the "standard" way does not mean you need to ridicule. Every thing is going just as planned for me, this deal is going to be just as good as anticipated. 

I recently purchased a rental property for cash with a short term unsecured loan because it was such a good deal(numbers below). I figured since I owned 100% equity in the house and I am only seeking 65% LTV I would have no problems having a bank Cash out Refinance. Well turns out I was wrong, since I am self employed and my last two years didn't show much on my tax returns while I was a full time student NO banks want to deal with me, not even small local banks.

I am seeking advice and recommendations on how to pull out some equity on a rental house I own free and clear without seeking tax returns. I do not need a great deal. I am okay with a 10 year, 10% 65% LTV loan.

The personal loan I have is 18% interest rate over 5 years. I am cash flowing negative $22 per month with this loan, allocating for taxes, repairs, CAPX, loan.

Paid: $21,000+closing costs

Rents: $650 (long term reliable tenant) 

Appraised: $36,550

Thanks in advance for any help!

UPDATE.

I got an unsecured personal loan with a very high interest rate(18%) and paid over $1000 in fees. I got the funds quick and closed on the property Friday. My plan is to now take the property to a bank for a Cash out REFI. However, every bank is turning me away since I am self employed and my last two years of tax returns don't show for much because I was in college.

I only need 60-65% LTV on the property to pay off this high personal loan and be able to cash flow.

With the 5 year, 18%  personal loan, I am cash flowing NEGATIVE $22/mo. After allocating for taxes, repairs, CAPX, and loan. I cant afford to get insurance with this loan. 

Matt- Great idea. Thank you for your input. 

If I use hard money and the hard money lender is a first position lien then I wont be able to refinance with the bank because I wont have much equity in the home after the lien.

Will a private lender loan without taking a lien position on the house?  Some banks I've talked to will loan 80% of appraised value minus the the debt owned.

Need help/advice.

I found a good deal with a tenant already living in the SFH. I want to BRRRR it(maybe holding off on repairs) but have hit some road blocks. I have the deal under contract now and am starting to talk to banks about Cash out refinance but it seems that in Texas you must live in the home to do a HELOC. Some banks want me to own the property for at least 6-12 months before I can refinance/pull out equity. All I really need is 65%-70% of the appraised value. to pay back private money. Also, the bank wants to be first lien holder. I just started to seek Private/hard money but want to make sure my refi is set in place. Does private money/hard money ALWAYS go as first lien? WHERE DO I GO FROM HERE??? I need cash to close on the house then need to pull out equity to pay off my lender.

Here are the numbers:

Purchase price: $21k

Appraised value: $36.5k

Rent(have a long term tenant): $600/mo

regardless I am going to house hack, just not sure if it is the right time to or to wait until I close another deal or 2. 

Hello, I am looking for some advice on my situation. I am a new real estate investor and am currently closing a wholesale deal. I will be making 14k. I currently rent and want to use this money as a downpayment on an FHA loan for a triplex or 4plex to house hack. OR I can use this money to really fast track my marketing on finding deals (direct mail). Thoughts and advice would be greatly appreciated. Thanks in advance.