All Forum Posts by: Milton Granados

Thank you so much Gianny! You're right for $150k it might need to be a condo or townhome, SFH are hard to come by at that price.

Hello BP! I'm looking for some help estimating expenses for owning and renting a SFH in Miami, FL in the $150,000 range.

If there are any property managers or realtors that might be able to help I would really appreciate it!

Expenses (Either dollar value or percentage of rent or prop. value)

1. Vacancy

2. Maintenance

3. Capex

4. Insurance

5. Taxes

6. Property Management

I am part of a venture that is looking to enable access to housing to underrepresented individuals in the state of Florida.

Looking for an experienced mortgage broker recommendations regarding the best way to approach acquisition of single family homes with either residential loans or commercial loans in the area. (including restrictions on number of loans able to be acquired as an LLC)

I was also wondering about this - what are the benefits of getting a CRA loan vs. a regular bank loan for purchasing say real estate to rent to lower-to-middle income households?

@Sam Shueh@Dave Foster

Thanks for the suggestions - it looks like selling would be a good option to move up to a bigger property since the equity would be trapped to this property otherwise.  The good news is that the property went up at least $80k in value with remodeling and increasing rents from $2400 to $3400 a month, so we have time consider the various options.  (Purchased at $240k so I'm thinking cash out would be a little more than $100k if we sell at the appraised value of $320k)

@Ronald Rohde 

Thank you for your response!

Looking at the numbers, it looks like staying with the current FHA loan would be about $600 cash flow after all expenses. Refinancing would actually bring this down about $50, so the benefit is marginal considering loan origination costs

Thank you all for your responses!

@Jim Cummings

Regarding option 1, I'd be moving out permanently I'm just wondering if we could refinance once I'm no longer living there

Opt 2 - thanks! I didn't know that

Opt 3 - Now that I've done the higher end of residential, I'd like to take a look a moving into small commercial multi-family. I found that even with a fourplex, appraisals do not depend on revenue but rather on comparable sales so there's limited forced appreciation through value add.  Thanks for the 1031 suggestion and referral, I'll definitely look into that as a possibility.

Happy New Year BP!  

I'm seeking advice from the collective genius of BP regarding an exit strategy for a fourplex that I bought in April 2017 using an FHA loan for house-hacking/rental income. Going through this process was an invaluable experience, especially learning how to be a landlord and how to renovate the units - but now it's time to move on to the next property.

Here's a bit of background:

• Current loan is an FHA with $200k outstanding
• Appraised within the last few days at $320k
• The fourplex generates about $3,400 monthly gross income

It was my hope to cash-out refinance to a conventional loan, but it turns out that is not an option for owner-occupied 2-4 unit properties (found out the hard way after paying the bank for an appraisal).  Here are a few options that are currently on the table, let me know what you think about them.

• Opt 1 - Move out, and do the cash-out refinance once the building is no longer owner occupied (can I just rent an apt somewhere else to change my address?)
• Opt 2 - Continue with the refinance just to get rid of PMI, which would bring the monthly loan costs down about $180
  • This would leave about $120k in equity (65% LTV)
  • Could this work as a pathway to a future HELOC?
• Opt 3 - Not do the refinance, but sell in April 2019 (2 years since purchase/move in) which would be an approximate gain of $100k (capital gains tax would apply to 3/4 of the gain for the rental units)

I appreciate everyone's time and input, and would love any other possible suggestions on exit strategies!

All, just wanted to update you all on this one.  We ended having the original tenant sign a early lease termination agreement for the end of that same month.  They left peacefully and cleaned everything so we got what we needed.

@Thomas S. Thanks for the response!  That's very helpful. 

I'll get written confirmation of the situation with the person that actually signed the lease and then issue the eviction notice.