All Forum Posts by: Victor Williams

Hey everyone. Hope you are doing well. So I am in need of some advice on this day.

Info: Multi Family Property; 2x: 2 Bed 1 Bath. 1x studio. 1x 2 bed 2 Bath.

CMV: ~80,000-100,000 ARV: 120,000-175,000(Not exactly sure how to do these but i did comparisons/ looked at an old appraisal).

Purchase price; $50000 USD. $6000 down payment. 500 per month. 5 year term balloon(flat fee).

Worst Case Scenario (hypothetical obv worst case is 0) rental income: $1200.

Use: Hold long term as a rental property.

Question: Should I refinance and take cash out with an FHA 30 year mortgage(live in studio apt)?

Other: I just dont want to cash out refi if it would end up costing me more. I have shopped around and its seems my mortgage payment would be around the same amount(500-600). The obvious thing is that would mean I would owe 80-100k instead of 40k. I of course would get 40-50k cash out to renovate/reinvest in other property I have but I am not sure if this would be the best option and do not know how to compare the two overtime(evaluate my options. Thank you for your time .

Also after the 1 year required to live at the property(FHA) I plan on renting the studio out as well. In reality the property should bring in 2k a month at least after I do the repairs. The thing is in order to do the repairs I either cash out refi or just wait and save up "my own money" to do the repairs. I am leaning towards the cash out refi option but wanted to get other opinions.

Thank you for time, hope everything is well with you.

There are four total units. 2 of them are 2 bed 1 bath. 1 is a studio and 1 is 2 bed 2 bath. I just dont want to cash out refi if it would end up costing me more. I have shopped around and its seems my mortgage payment would be around the same amount(500-600). The obvious thing is that would mean I would owe 90-100k instead of 40k. I of course would get 40-50k cash out to renovate/invest in other property I have but I am not sure if this would be the best option and do not know how to compare the two overtime(evaluate my options. Thank you for your time @Saravanan Saravanan.

Also after the 1 year required to live at the property(FHA) I plan on renting the studio out as well. In reality I the property should bring in 2k a month at least after I do the repairs. The things is in order to do the repairs I either cash out refi or just save up. I am leaning towards the cash out refi option but wanted to get other opinions.

I am a newbie but as far as I understand if you want to protect your assets an LLC is one of the most popular( easiest/rei friendliest?) ways to do this. I believe it is 100% necessary to protect your investments. As a matter of fact some people have multiple(20-30 and beyond) llcs as a way to protect their investments. Some people put ~200k per llc others do it differently. If the property is under your name and you get sued your investments are put at risk. Also maybe they try and sue for something that happens at your rental? Thats right they come after you. People will try to sue for anything and everything. It may happen to you and it may not. That being said... why not do everything in your power to protect your investments.

                                        PS. Do your own research IANAL(ask a legal professional) etc etc. Looking forward to hearing from all. Thanks

Hey everyone. Hope you are doing well. So I am in need of some advice on this day.

Info: Multi Family Property; 2x: 2 Bed 1 Bath. 1x studio. 1x 2 bed 2 Bath.

Current market value: ~90,000-100,000 ARV: 120,000-175,000(depends on who does the appraisal).

         Purchase price; $46000 USD. $6000 down payment. 500 per month. 5 year term balloon.

         Worst Case Scenario (hypothetical obv worst case is 0) rental income: $1200.

         Use: Hold long term as a rental property.

Question: Should I refinance and take cash out with an FHA 30 year mortgage(live in studio apt)?

Thank you for time, hope everything is well with you.

Thank you @Ned Carey  and @Ron Flatt. It just seems strange that a 10k tax lien would wipe out a 100k mortgage. I suppose mortgage companies etc would have things in place to prevent that from happening( or at least have a way to come after the person who owed) . I will take a look at my states statutes and find a good real estate attorney to be safe.

Hi everyone. I was wondering if there are any good books to navigate the world of liens and how they work( mortgage, tax, child support, builder, etc) . For instance if a person owes a mortgage on a property and it goes to auction because of tax defaults what happens to the mortgage said person owed etc.  Second mortgages etc. I dont want to get into the world of buying at auctions if I dont understand how this works.

Thanks @Ian Tvardovskaya appreciate your input I will look into it. Have a good one.

I want to get a small loan( ~10k) to rehab a property that I inherited and rent it out. I was wondering what lenders look for when screening you to check if you are a good candidate. I also would like to know if there is anywhere that would do such small loans. Thank you for your time. Hope everything is well with all of you. Would it be best to just save up and finance the rehab on my own?

@Andrew Fingado I am just starting out I own a few properties and rent them out. Thanks again for all the knowledge. @Douglas Larson I don't care much for wallpaper removal myself. I was thinking about just going to school for architecture(excluding naval) and interior design. I need to figure things out fast I'm almost 23!! So I decided I would go seek out anyone that would not mind letting me pick there brain so to speak. (with hopes of paying it forward of course)

Well that would make sense less maintenance I might end up doing stucco from now on, thanks!!