All Forum Posts by: Nate Fanara

@Michael Wilson you can do an OO every 12 mo as long as property is within reasonable commute form work (if you are W2) and it looks like an OO. Hard to explain you move from a $500k SFR to a $200MF, just to give you an idea.

It’s easier to qualify for a MF as you use the rental income to qualify and also you have departure residence rental.

@Nate Fanara yes, you can refi after reno is done. You can also consider an investment renovation loan next time, FannieMae HomeStyle, 85% LtV, you can also roll the mortgage payments during the reno into the loan. You can refi or sell after the rehab. This reno loan is the cheapest product on the market when comes to investment flipping

Can i refi the ARV within 6 months of the purchase? When i did some research it seemed all i could do prior to 6mo was refi the purchase price of the property, which in my case, is less than the amount spent on rehab.

If this is an option id love to connect to learn more.

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Originally posted by @Steve K.:

@Rahul Handa Our 8 plex got sued last year (slip and fall on ice in the parking lot, broken hip). Tenant was successful in the suit and awarded $100k to cover her medical expenses. HOA got dropped by insurance, had to find new insurance and fees went up $100/mo because of it. It does happen which is why we carry insurance.

Can you tell me more about how the tenant won the case? Was there a known issue that would have prevented the fall if it were addressed before hand?

I only ask because i do not fully understand how someone is liable for someone else falling unless there was a known issue that wasn't taken care of. That being said, i am clearly not familiar in the laws regarding this :)

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My story is very similar to yours. Bought house young, now have equity in said house.

I took out a HELOC and used that to pay cash for an investment property + Rehab costs. Rehab will be done in about a month and at that time i "plan" (subject to change) to get a rental loan from a lender in order to pay off my HELOC and restart the process.

The reason for the rental loan is to get my cash back quicker than waiting for the 6 month seasoning period to refi. I want to be able to purchase again sooner than that.

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Hello,

I currently have 1 rental property (this may go up very soon) located in Ohio, I live in AZ. I have done a lot of reading about the benefits of an LLC. My main reasons for wanting one are the protection it provides and to keep my Debt to Income Ratio balanced, but i have no clue where to start. I've read that NV and DE are great places to create the LLC but i do not fully understand the benefits/draw back of doing this. I have decided i would rather speak with a real estate attorney than trying to guess on my own, but do i speak with an AZ attorney or OH, and does anyone have any recommendations?

Thanks

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Originally posted by @Justin Kane:

@Nate Fanara im sure youve heard the only dumb question is the one never asked. B(usiness) L(lines) Of C(redit)

like companies like Fund & Grow

i have heard of Fund and Grow but dont know much about them or their operation. I will need to research.

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Originally posted by @Mike Rutherford:

@Justin Kane I had the same question as @Nate Fanara, what are blocs?

@Nate Fanara How are you approaching your deal with financing, can you explain?

I plan on going to a hard money lender for a "Rental Loan". This acts as a means for me to get my money back (granted higher apr +fees) quicker than waiting the 6 months. Then, in the future should you want to get out of that high APR you could always refi again with a conventional lender.

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Originally posted by @Justin Kane:

there are more then just standard agency loans do you research to learn more, find out what your purpose is to cash out.. if its to purchase more real estate, then i suggest using Blocs

dumb question, but what is "Blocs"

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I am in this very situation. From my understanding is that within 6 months your only options is to refi a percentage (not sure how much because i am not choosing this option) of the purchase price of the home.

I have decided that i will most likely go through a lender for a "Rental Loan" to pull the money out quick to get started on the next project.

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Originally posted by @James Gates:

Originally posted by @Nate Fanara:

@James Gates Can i ask why you decided to wait the 6 months to refinance vs going to a hard money lender for a rental loan? I am starting my first BRRRR next week and do not want to wait 6 months to get my money back to buy another property, a rental loan seems like an OK way to get the money faster than 6 months, granted you pay for fees, etc.

What are your thoughts?

I had not considered using a hard money lender for my first deal, I did not have any credibility nor any contacts. My understanding is the interest rate is much higher (with points and fees), and the term much shorter. Our timeline for this property is likely around 10 years, and the low-interest 30-year fixed was very appealing to me. I also found the 6 month interim period extremely useful in stabilizing the property and getting everything running smoothly. So those 4 months where we had a tenant paying full rent but no mortgage expense were nice in setting up the reserve coffers for future expenses.

Gotcha, thanks for explaining this to me.

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What are your thoughts?

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All Forum Posts by: Nate Fanara

Nate Fanara has started 3 posts and replied 33 times.

Post: HELOC for first deal: buy MFH cash or do 20% on nicer MFH?

Post: Getting sued! Is it common in real estate?

Post: HELOC for first deal: buy MFH cash or do 20% on nicer MFH?

Post: Totally lost on creating LLC

Post: BRRRR - Delayed Financing vs. Cash Out Refi

Post: BRRRR - Delayed Financing vs. Cash Out Refi

Post: BRRRR - Delayed Financing vs. Cash Out Refi

Post: BRRRR - Delayed Financing vs. Cash Out Refi

Post: FIRST BRRR Complete! Details + Pictures!

Post: FIRST BRRR Complete! Details + Pictures!