All Forum Posts by: Matthew K.

 Alrightttttt. Sounds like this is what type of product im looking for. This seems to make more sense as we could probably pull out some of that $500K cash we already have in the property (although likely leave in a fat downpayment of 200K-300K). Im guessing these are also likely amortized over 30 years. Seems more straight forward than getting a rehab loan and then cash out refi after that. Am good to chat with you about the details if your group offers these in situations like these. 

 Hey Jonathan thank you for the reply. I did not know about the 80LTV not likely above 1M. Im fine with doing just 70LTV and leaving more cash in the deal because the upside is substantial enough (likely 800K+ equity via rehab)

I overloaded the post with maybe too much detail, throwing you and others off. I already used all those funds for the 500K cash to buy the house and now looking at the options to fund the 415K reno. 

Sounds like maybe doing a 70 ARV refinance loan might be the best way to go in this situation because we have so much equity already tied up in the deal.

Some Detail....We bought our 2nd airbnb Brrrr. Fantastic value estate my wife worked 2.5 years to get for $500,000, waterfront in Fort Lauderdale. House is a tear down essentially. Couldnt get a mortgage so paid cash. Raised 300K from HELOC on 1st airbnb and another 200K from my investment accounts (have another 1.9M roughly in a ROTH IRA that we are OK to withdraw early and pay taxes and penalities buttt....)

So now we have new architectural/engineering plans for a 3/2 2000sq ft home that will have permit approved likely within 4-6 weeks. A New dock/seawall (permit pending), new pool (permit pending), new driveway and new landscaping. House budget is roughly $415,000 (roughly $205/sq ft rehab/rebuild). Exterior budget roughly $125K and we are ok paying with cash for this portion. 

My question is we have $500K cash in the house, but it seems a HELOC on that house is unlikely because an appraisal is needed and appraiser may note that house is not liveable (cant really tell as exterior is fine, but never know). I got quotes from RENOFI for like 9% plus 1 point and a Renoloan from a national bank for like 7.5% (3 weeks ago so prob roughly 8% today.) This loan seems similar to a construction loan as they work with GC on the draw (but we cant get a construction loan because its not "new construction" (leaving exterior walls and foundation).

What would you do? I'd perfer to have all $415K budget for house via debt but also would like to mortgage the property upon completion to get the cash out 80% LTV. The ARV will be between 1.8M-2.3M depending on factors. We will be in roughly 1.05M. (It is likely an excellent deal in a tough market but wife spent years working on getting it thru estate.) Likely take ALL cash out of deal ASAP. We closed in July so dont know what the seasoning period would be to get our money out (id hate to have to wait 12 months after we close) because we will have so much cash tied up in the deal.

Thanks for the technical advice. Couple questions in there and open to working/discussing this with lenders in BP community who understand this unique situation. 

Matt