All Forum Posts by: Michael P.

I've been noticing that the loan terms of commercial properties (5+ unit and up) have a term of much less than the traditional 30 yr for single families. It may be amortized over 15 to 30 yrs but it seems  like the principle is due within the first 5 to 10 yrs. Looks like its very hard to find a 30 yr commercial loan. My question is, do the same rules apply to 2 to 4 unit properties that are not considered commercial? Can you find a 30 yr fixed rate loan any easier for this or is it just as hard as  5+ unit?

Bill,

Thanks for the response. Are the loans still better if you are buying the 1-4 unit property in an LLC? Or only if you put it in your individual name and are looking for conventional or FHA and trying to say it is your residence? How are the loans better? Rates points? in what respect? Taxes are the same? Depreciation? Corporation taxes vs Individual? Thanks again

I am a new investor and looking to buy my first property and scale out soon after. I was trying to understand if there is a difference in tax benefits for the rental income if the property is a 4 or less unit or a 5 or more unit property. I know that 5+ would make it commercial, but would that change how much taxes I would have to pay on the income from the property? If so how? Does it have to be purchased by an entity like and LLC or is it just silly not to? Are there any specific downfalls to going above 5+ unit properties as a new investor, or is it all the same just bigger numbers? Thanks in advance.

Im looking for buy and hold  multifamily rentals for cash flow.. and im not afraid to fix something up to get it rental ready if its a good deal... and maybe even use most of the cash flow to pay the properties off asap if possible. But mainly cash flow.

Jaysen,

I am in fairfield county myself and am looking to most likley manage the properties myself for at least a little while. So eastern CT is a bit far. Ive been looking at bridgeport and surrounding areas, hartford and surrounding areas and even new haven and surrounding areas as these areas still hold rent prices that are justifiable for income. My problem is that im having trouble with  financing or refi and trying to figure out how to make the most of my funds. I need to come up with a realistic plan for best use of every dollar of mym funds...and also its hard knowing the specific neighborhoods as to not buy in the worst parts of town where rents reflect the location.

Looking for advice. I have $130k in an equity line of credit on my primary residence and about $20k in cash. I have a job and make pretty good money, but would eventually like to transition, to fully living off of rental property income. What would be the best and most efficient way to utilize these funds to acquire the most amount of rental properties and cash flow possible. I live in CT and have some areas around me that I can acquire that are 2-4 unit properties for about 100k to 200k. They are in rougher neighborhoods and will most likely need at least a little work. I would like to use as little of this as I can for multiple down payments and leverage most of the property. The BRRR method seems to be a little bit of an issue for me for a few reasons. Although I make and have made good 6 figures for the past 5 years, I recently switched companies and since part of my income is bonus and commission based, my normal bank wants me to wait 2 yrs to before I would be safe to do a refi. This makes doing a private lender short term loan and then a cash out refi hard to do. Any of you experienced investors out there that can give me advice on what they would do with my situation if they were starting out like me and you knew then what you know now. I will say, that I am experienced in construction/contracting and have renovated homes before. I am not too shabby with finance as well, but I just dont want to go at this one way, and then find out that there was a better more efficient way for me to reach my goal in a shorter amount of time. Thank you in advance.

Can you do a cash out refi on a multi family rental unit, if you have no current earned income and you purchased the property with a hard money loan? I ask because I am interested in buying a multi family units along with flipping properties, but I plan to leave my current finance job to do this. I have been in finance (not lending or real estate) working for a large wire house for over 12 yrs and have money in the bank, but will not have any earned W2 income once I leave. With having to show that I can cover my current primary residence mortgage, will I have a problem doing a cash out refi to purchase property after property? Or will I run into a problem because my income may not show that I can cover monthly payments for several properties at the same time? Any way around this to acquire multi unit rentals to earn a solid stream of income without another job or source of income?