All Forum Posts by: Nathan C.

 Hi Polly,

I misunderstood your situation. Now understanding it better, my preference would be to do the HELOC (like you imagined) on your primary, take the cash, buy something cash, cashout refi, and pay back the HELOC until you find another deal.

I only give cash offers. My experience with the neigbhorhoods and JAX is: 

if a seller is willing to wait for me to close a loan, they might as well sell it on MLS and get 20% more than what I am paying. Most of the time, they know that they are selling it under market; it's no secret. The point is that they want to sell NOW and they don't want to hassle with a buyer whose bank might not approve the loan because then the market can change or they might need the money sooner and if that buyer who is waiting for a loan doesn't make it, the seller would have to start over.

This experience is based on buying 1-2 properties at a time with the requirement that it is under market. JAX is ultra-competitive. Try talking to realtors there and monitoring how quickly "good deals" get sold. You'll start to get a feel for the velocity that good deals come onto and off the market.

 LimaOne might lend in TX.

Hi Polly,

I was in your shoes about 1.5 years ago. I pulled data on job growth, median income, population growth, median rental prices, etc. for almost every county in the US. It was interesting. The file was massive. 

I considered almost all of those options and it really depends on what your goals are short and long term and how much time you want to invest into it. 

For BRRRR, I definitely agree: D class is probably not the best idea.

I'm confused with your idea for doing a HELOC... Why not just refi into a 30-year and use the delayed financing exception? You seem to have the funds to pull it off.

In the end I started with Jacksonville FL. 

Best of luck!

Looks great @Lesley Resnick! 

After talking to you so many times, it's great to see a project that you're working on right now!

@Account Closed 

Appraised for $110k in March 2018. 3 exact same buildings on the street sold for $130-140k since then.

~$950 / month after PITI without considering repairs & capex

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $93,000
Cash invested: $16,000

A concrete-block 4-plex that had 1 vacant unit and needed a roof. Fully rented now and cash-out refinance is complete.

Hi Everyone,

Thank you for your responses. I ended up calling the EC and asking them to revoke the invoice. They were fine with this. Then I called the bank and had the check that was in the mail cancelled so that the GC wouldn't take the money. Then I emailed the contractor and said that they shouldn't bother cashing the check. I mentioned that the check that was in the mail was for a complete inspection and using the mailed check for this partial inspection invoice would be a misuse of the funds. No response from contractor. I have since moved on.

@Wayne Brooks I see what you mean regarding splitting the work and having someone else finish. We ran through this scenario and in this situation, it sounds like all ECs will start back at square one. They won't accept another inspection finding done by a different EC since they will be on the hook should the city come back and demand other fixes. 

Hi BP,

I'm in a bit of a pickle and this opened up another question:

When you hire a GC and their subcontractor does work wrong or does not complete the contract, does your GC require you to pay for the wrong work? What about if the sub doesn't complete the work? Does your GC require you to pay for the half-done job when the sub's task is not done and must be restarted?

Although I'd like to learn about your experiences with the above, I originally was hoping for some advice on a particular situation: 

In my investment county, if the utilities has been off for 1 year, to turn on the utilities (power in this case), you must have an electrical contractor perform a safety inspection, perform any minor repairs, pull a permit, have the city inspect the electrical, finalize / close the permit, then you can call the utility company.

I have been talking to a GC for a property that is in escrow. She said she can help with the safety and be there with the electrical contractor (EC). I agreed and she said the EC wants $400. I sent a check (it has not made it to her yet). She called / scheduled the EC (agreed to $400 for this task), went to EC appointment, she said the EC employees came, gave her a list of minor repairs and said that they would call back to provide a price. Now it deviates from what was planned: the EC calls the GC and says that they cannot perform the job and will be sending her a bill for the inspection. The bill is $238 and they will not complete the work. Worse yet, she wants me to pay that $238 while she finds someone else. She says if I don't pay her, she will have to pay the $238 regardless. 

At this point, this does not seem like my responsibility since she vetted the contractor and had faith in them. In my view, I am paying for a safety inspection and did not agree to a change in instructions. I told her to send me the $400 quote that they sent her BEFORE the job. I have not told her that I am considering not paying because I want to know what others would do in this situation. What do you think? What would you do?

By the way, the first few questions were not to drive home a point; I asked them because I am genuinely curious now that I had this issue what happens if other issues occur when more $ is on the line.

HI BP,

I'm in escrow on a triplex; I have the funds to close and fund it all the way through but I am trying to get creative because I see other deals.

• Purchase: $25k
• Rehab: $40-45k, 6 weeks
• ARV: $90-100k
• Triplex: 2x 2/1; 1x 1/1
• Jacksonville FL
• CB structure

Options:

• Cashout refi, no seasoning: If I could finish the rehab and start the process for a cashout refi without seasoning, I would then do the deal cash with my own funds.
• Short term financing during seasoning period (ex: partner with contractor, private money, cheaper hard money?)

Does anybody have no-seasoning lenders OR short term financing options that are not 11%+pts? Other ideas are appreciated.

Stories of what others have done in this situation are also welcome!