All Forum Posts by: Mark Webb

I would screen the current tenants if they are on a month to month before continuing any leasing arraignments with them. I never trust the judgement of a previous landlord regardless if they pay on time

@Jonathan Miller hey Jonathan they central Florida market has a very strong small multi family and short term rental market (property close to Disney)

if you have any interests PM ill email you some properties. I know Tampa is a great market to be in right now but from my understanding Jacksonville is very hot and competitive. hope this helps 

Mark

@PeTika T. these seem like something you might be interested in

@Account Closed I have a property in the Kissimmee area that had roof damage and I got the initial ok for insurance to get the replacement roof however now getting them to give the final approval for the remainder of the bill is a nightmare. it might be that they are swamped with claims.

@Jeremy Leech Hey Jeremy the central Florida market has some great opportunity for small multi family compared to other expensive markets (2-4 units good for house hacking with low downpayment) and short term vacation rentals close to Disney that are producing great returns. PM if you want me to send you some to look over. I hope this helps!

@Yader Gomez I would contact some other lenders in in the Phoenix area it is likely just that lender because you are able to do a FHA with 3.5% down for a MFH up to 4 units so long as its your primary.

@Josh Calcanis congratulations, just curious did you look into the option of pulling a revolving HELOC to acquire more properties so you could reuse those downpayment funds in the future if needed? if you did please elaborate on why your choose to Refi over the HELOC thanks!! mark orlando Florida

@Syed Shah a new appraisal will be issued at the time of applying for a refi or helec. 

here is the comparison based on a $200,000 house

Refi: cash out refinance. lets assume you'll get 80% for the sake of this comparison. so you can take that $160,000 and buy another house that would be free and clear lets say for $140,000 plus closing costs and minor repairs lets call it $150,000 with a remaining $10,000 in reserves( lets assume you just pay retail for the house so we don't complicate things)

so your total property values are $340,000 minus your $160,000 loan so your property equity is $180,000 plus a $10,000 cash reserves but in order to access that equity again you either need another cash out refi or to pull a HELOC.

VS

HELOC; revolving credit line lets call this one 80% as well so $160,000 you take $28,000 of this for a 20% down payment on the $140,000 house and put another $10,000 up for minor repairs and closing costs your at $38,000 all in and then have a lender provide the other 80% leaving you with a loan for $112,000

so now you have properties that are valued at $340,000 minus your $38,000 Heloc minus $112,000 loan your left with $190,000 in equity and a remaining HELOC of $122,000 that can be used for acquiring more cash flowing property or flips.

so its a higher amount of leverage but I always recommend focusing on paying back that HELOC when acquiring rentals so you can free up that bit of cash flow from your expenses then go purchase another rental using the same amount until a bank stops you then go after owner financing with 80%LTV+

hope this helps!

I would prepare the house for getting appraisal done to either pull a refinance or a good HELOC(revolving preferably) to go purchase some more properties. I prefer the HELOC to use a small amount for closings costs and down payment and then just pay that back as fast as possible. to repeat or work on paying down the new mortgage if your wanting to play it safe

with that much in equity have you considered using a HELOC?

or maybe even just doing a good old fashion refinance ?

it seems that taking a route like these would be much cleaner to just pull out your current equity and use the new cash flowing property to pay off or back the heloc/refi 

and with the heloc you could repeat this process