All Forum Posts by: Matt Holmer

While I know it can carry by area, I agree that insurance rate is way high. Yesterday I purchased a policy with a replacement value of $115,000 and it was $575/year. The ARV of the property is around 90,000.

Check out this recent thread for a lot of good info

I like Schlage but any of the major manufactures will work as long as the entire until is the same brand (and therefore same keyway).  Between tenants, I buy a rekey kit like this one for about $11.00  The kit has enough pins to rekey 6 locks and comes with 3 keys.

It might seem daunting at first, but rekey your own locks is pretty simple and only takes about 5 minutes per lock once you have it figured out. 

@Joe Villeneuve

Thank you for all the tips in this thread. I've moved away from private money and took on a partner for my next deal. Based on the comps, I should have about 70% of the ARV into the deal and hope to use this strategy a couple times before the end of the year.

Thanks all!

 Joe

Since you're paying off the lines of credit with a refi on the same property after 6 months, you essentially close the loc correct? Do you get any push back from the bankers who are doing the original LOC since you only have them open for such a limited time?

Thank you for the great info. 

There is a TON of discussion on these forums regarding the positive and negatives of turn key properties.  Just like anything else, they are providing a service and looking to be compensated for that service.  Therefore, when the property repairs are already complete, expect to pay a premium.

However, some companies offer a discount if the investor purchases the property in cash (pre-rehab) and funds the repair cost.  This way, the turn key provider is not out any of their own money and therefore can offer a discount.  

May be a stupid question, but if you use the same bank will they use the same appraisal from the line of credit as they do the refi a few months later?

I have to think freshly rehabbed property that is empty will appraise higher then one with a tenant that just moved in. 

 Joe

In this above what is the purpose of the Line of credit? I am doing a all cash deal with 50% private money and 50% from savings. I think the line of credit would be a great option to pay back the private money while waiting for the seasoning period aND would have a lower rate.

Questions

Do you get an apprasial for  the loc?

Are there closing cost for the loc?

Thank you

What percentage of the new appraised value was your lender willing to do with the cash out refi? Also, what type of terms did you get on the refi?  (e.g. 4.5% interest with 30 year amortization).

Did you use a local lender or one of the big guys?

Thanks!

Thank you for the comments.  About 80% of the house have garages.  This one used to have a garage located on the parking slab.  However, the bank previously tore it down.