All Forum Posts by: Mikael Winkler

@Sharissa P. to add onto what everyone else is saying, both are viable options for beginners. I myself utilized both. My first rental investment I purchased with a 3.5% down FHA loan. My wife and I moved into one of the units (it's a duplex), renovated, refinanced into a conventional mortgage, and now rent out both units. It cashflows awesomely.

But, I also realized that I didn't want to continually move my young family into every property I buy because I can only afford 3.5% down right now. So, wholesaling is definitely a great way to gain that capital needed to shove into rentals. That's what I'm focusing on right now.

Good luck to you!

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Thank you!

Mikael

Focus on Real Estate

Thank you all! I will look into some of these options!

Thank you Harjeet! That's what I'd seen in my research regarding cash-out vs. rate and term, but, as with everything on the internet, there were 100 differing opinions, as well.

Ah okay, Ryan, thanks! I'm exploring all my options currently, so I'll look into that. Essentially, I just want to refi quickly because I'd be borrowing the reno funds and would want to pay them back ASAP to not have those payments eat into profits for months. I'm beginning to think creative financing, hard, private financing is the route to go.

Thanks for the insight, Jason! Does that apply to both cash-out and rate and term refinances? The reason I ask, I've heard that the cash-out is that 6 month wait, but rate and term could theoretically be done the day after one closes on a property.

Hello all,

I have a question regarding refinancing. More specifically, how quickly can you refinance after a purchase if you add value through a rehab? I've seen from many sources that lenders generally don't want to refinance prior to 6 months after because not enough equity has been built up. Maybe I'm thinking too simply about it, but if I'm forcing an equity increase through a renovation, why couldn't I reappraise and refinance immediately after that renovation? Whether that's 3 weeks, or whenever, after the purchase.

I know @Brandon Turner loves the BRRRR strategy and I do, as well. That's how I completed my first rental renovation. But, I also lived in my first property during the renovation so waiting to refi wasn't a huge deal. My next would be non-owner occupant. Unless I'm missing something, having to wait to refinance, would effectively wipe out much of the profit until that 6 month mark, as I'd also be making payments on the funds borrowed to do the renovation. Is the BRRRR strategy assuming that the investor isn't using borrowed money for the rehab and can wait a period of time before refinancing?

Thanks all!

Mikael Winkler

Hello all,

I have a general question about paying back renovation financing through a refinance of the mortgage. I recently bought a duplex that I plan to renovate and rent. Essentially, my plan is to secure either a personal loan through a bank or investment from a private investor. The lender who originated the mortgage for me only deals with mortgage and refinance, otherwise he'd be able to lend the renovation funds I need. 

I am unable to do a HELOC, as I haven't built enough equity to pull out. However, I want to renovate because the units aren't rent ready as they are now. My question is, if I secure a personal loan, how does that get paid back in a refinance, since the funds aren't tied to the property like they'd be in a HELOC or equity loan? My lender seems to think it will be more difficult, though it can be done.

Can the bank and/or investor that lends the renovation funds put a 2nd position lien on the property? I know putting a lien on a property is usually a negative, but I'm thinking off it more from the perspective of making it easier to pay off in the refinance. Any thoughts or advice is greatly appreciated!

Mikael

Hello all,

My name is Mikael Winkler, and I'm an investor in Columbus, OH. I recently purchased a duplex, which I'm looking to renovate and rent out. Currently, my wife and I live in one unit, with the other vacant. We have completed some of the work on our unit, but are seeking financing to complete the rest of the project. 

We have already selected a contracting firm to complete the work and have a scope of work for around $18,000 to complete it. I am seeking financing of $25,000 to cover any possible unforeseens. My units are in Merion Village, and after renovation, I anticipate rental rates of $850. My units are each 2 bedroom 1 bath and 988 SF.

I was working with one of the larger financial institutions in Columbus to acquire financing, but they were unable to lend because my debt to income isn't ideal at the moment. This is largely because we acquired this property so recently and are looking to renovate quickly, as the previous tenants did not take care of the units. I do understand the larger banks are more rigid in their lending criteria, so I'm ideally looking to speak with someone at an institution more willing to work with me individually based on my plan for the property. I, of course, can and will provide a full outline of our renovation schedule and how the loan will be repaid, etc. Any assistance is greatly appreciated!

Thanks!

Mikael Winkler

Hello all!

I'm looking for a mid-size apartment complex of at least 30 units (more if possible) in central Ohio and/or surrounding areas. Counties of interest can include, but are not limited to, Franklin, Fairfield, Licking, Delaware, Union, Madison, Fayette, Clark.

I will be working with a team of other investors, and we are looking for properties $35,000-$45,000/unit, with the chance to add value through physical improvements and streamlined management. "Turnkey" aren't out of the question; we'd just need to study the numbers involved. We are also interested in the possibility of owner-financing. While we could consider a portfolio of properties that combine to equal our desired unit amount, we'd like to stick to whole complexes. Any information on possible opportunities is greatly appreciated, and we look forward to speaking with you!

Thanks!

Mikael Winkler