All Forum Posts by: George Despotopoulos

@Tony Nguyen. Those deals sound like home runs. In my opinion, as long as you have 25-30 pts of equity in each cash flowing property you are on the right path to building a great portfolio. 

@Jon Quijas. Based on the information you provided, you should definitely look at specialty lenders out there that will give you a mortgage on your rental property based on the property's income rather than your personal income. This is a great way to take out some of your equity from investment properties you own and use the cash to buy additional properties to grow your portfolio. 

Keep in mind the cash-out refi's are usually up to 65% LTV and carry a rate of 6.5%<.

@Jeremy Jackson Congrats. Would you think about refinancing the property and taking some cash out. Feels like this is a grand slam especially given the monthly rental income. 

@Jonathan Yungel Small potatoes. You definitely don't need to pay her back the 5 days. But to avoid any additional headache and have her waste any more of your time just let it go. 

@Elgin Swift. Couple of comments:

1) Fairly strong rental income by the property

2) See if you can renegotiate tax bill - seems high for a property that is $99k

3) There are third party vendors out there that will screen your tenants ( have heard of landlords running background and credit checks for their tenants)

4) I would suggest getting a 1yr lease in place. It will make it easier for you to get a loan.

5) There are specialty lenders out there that will lend on the income of the property and not your personal income. Rate for those loans is usually 6.5%< , LTV 65-70% and DSCR needs to be at least 1.25x.

@Randy Cooper. Since you are just starting out, I would keep at least 10-15% of the value of the property (~$50k-$75k). 

@Heather Walker. From my experience, Hard Money Lenders are on average 2-4 points upfront with a 11-13% rate. Very rarely do you see a 80/20 profit split. Lastly, you should be able to fund the rehab yourself and not have to include it into the loan. 

Well said @Michael Bowman.

Agree with you @David Glass.

@Daniel Green. Explore opportunities with specialty lenders who will provide a loan based on your property's income and not your personal income. 

@Danny Carter. Good luck with your flip. It does feel tight but you should be thinking about maximizing your proceeds on your exit once you have a tenant in place and the property is cash flowing. There are specialty lenders out there that will provide a loan not on your personal income but on the income from the property...so make sure you are targeting a minimum 1.25x DSCR and ~65-70% LTV.