All Forum Posts by: Matt Murphy

If I do a cash out refinance on properties within a LLC, is it possible for me to use the cash from that new loan to buy properties or a business in my personal name (not under the LLC)?

Or can I only use the funds within the LLC?

If a parent LLC owns the child LLC (the LLC that had the refinance) could the cash from the refinance roll up into the parent LLC and then be used in another child LLC?

I have read many articles related to needing a W9 from your contractor and ultimately issuing a 1099 eventually to account to payments made to the contractor during flips. I have not seen anything about if this is still necessary for rehabbed properties that are not sold, is it the same? This is related to a BRRR which we bought, completed and refinanced within this year and plan to hold for a long time.

Additionally, let's say we sell the house in 10 years, do I need to keep all of the receipts and invoices from the rehab until we sell to track the capital improvements so that we use the improved value of the property (purchase + rehab) instead of just the purchase price?

I have heard about this strategy previously, but can’t find much about it now or know what it is called.

For the sake of this example, I am going to assume there is no appreciation.

Buy 1 house worth $300k per year and rent it out. Do this for 15 years and put them all on 15 year mortgages. At year 16, when the first house is paid off, you cash out refinance and live off of that for the year. In this example, assuming 75% LTV, you would pull out $225k and it would be tax free.

Has anyone ever done this or heard about it?  It seems like a better way to retire off of buy and hold strategy vs traditional cash flow which might get you to retirement faster, but would require the management of many more units.