All Forum Posts by: Nnabuenyi Anigbogu

@Hermanie Pierre the 100% Heloc is only on owner occupied properties. I haven’t found a lender that does 100% on rentals

I do know of a lender that does 80% on rentals though. In process of one right now and just waiting for appraisal.

@Michael Lopez I just wanted to point out that there are banks out there that do 100% LTV HELOCs on a primary property. Since you currently live in the property that would qualify you for it. That gives you a greater amount to work with and as stated you don't pay anything until you tap the HELOC. I just closed one myself a month or so ago on my primary.

Let me know if you need more details or the bank info.

Nnabuenyi

@Aaron Frances In my opinion, the best way to go is a heloc as stated earlier by another answer. It gives you the flexibility you need without all the closing costs associated with a cash out refinance. I actually recently completed a HELOC on one of my 3 flats with a lender that lends up to 100% LTV (owner occupied). If you truly have the equity you believe you have, that will give you 200K+ of cash available via the HELOC. The best thing is that you can pull only what you need as you need it so that you are not paying interest on the rest. So if you got approved for a 200K line, you can pull 65K at closing to pay off all the debt in your wife's name. The rest just sits there until you are ready to use it. The rate on the HELOC is about 6% (1.9% 9month intro rate) so it will be cheaper than the rates on the installment loans as well if you decide to pay those off. Then whenever you find a second property you can pull the downpayment from the HELOC. The best thing is that you dont pay any interest while you are waiting. It only accrues when you actually pull the cash unlike a cash out.

The only reason i can see to do a refinance right now is if your current loan is an FHA loan and you are looking to free up the FHA to use for another property. In that case you have to see if the numbers are worth it. I refinanced mine out of FHA into conventional prior to doing a HELOC so that i would have FHA available if i wanted to use it again. Also if you go this route, there is nothing that says you have to do a cash out refinance (cash out closing fees are astronomical in my opinion). You can do a rate and term into conventional to keep your payment the same or lower than it is now (especially if you currently have PMI which will be removed based on your equity). Then use the HELOC to pull out the cash you need after the refinance closes. If it appraises like you expect, you can actually use the same appraisal to apply for the HELOC so you dont need to pay for a second appraisal (that's what i did).

Let me know if you have any questions on the above. I believe that is the most flexible way to go about it.

@Cynthia Sandoval

I have a flip currently in progress in the Chicago area that i am looking for an investor on due to low cash availability. Would be willing to JV on it or do a straight interest deal. I have rehab funds in escrow with the lender so the money is there but i need to do the work prior to getting reimbursed. It is about 8-10 weeks to completion as the property is in the drywall stage. That means your money would be returned quickly. Your interest can be secured in the property or personally guaranteed if wanted.

Let me know if you are interested and we can talk.

Thank you

I like to go to resale and thrift stores in wealthier areas. I.E. I live in the city of Chicago but go to stores near where my parents live in the suburb of Oak Park and other wealthy western suburbs. You would be surprised what upper class people get rid off.

Also i use Craigslist a lot too. I got a full 3 piece $5000 couch set for $900 that was about 2 years old. Reason for the guy selling? His wife saw some new furniture that she loved and bought it so he has to get rid of the old ones to make room. Apparently he wasnt happy to sell it but he could afford the new ones and wanted to make his wife happy.

So find those areas nearby with upper middle class and above and you can sometimes score some deals.

 Im located in Albany Park. Near Lawrence and Pulaski

@Ravi P. I dont mind answering.

I was able to purchase my windows pretty cheap (about $90-95 a window after all discounts). Sizes are around 35x58. I bought it in conjunction with a big order my partner was putting in for a flip we were working on together so don't expect to get them so cheap.

As for installation i would expect about $100 a window. That seems to be the going rate from my research replacing windows especially if its not a big job. 

With 20 windows to do you should be able to get a better rate on labor than me.

Hi All,

I am looking for a carpenter/handyman in the Chicago area to help replace four of my windows in a rental unit. I have already purchased the replacement windows so i am just looking for labor. Unfortunately the carpenter i have used before only does bigger jobs and 4 windows is not enough.

I thought about doing this myself but decided against it.

Any help would be appreciated. 

Thanks

You would need to provide more detail if you want input. Given that California is generally more tenant friendly it is very doubtful that you will get immediate possession if the tenant currently lives in the property. You would likely have to go through and eviction process first before that.

You should definitely get more than 50% of the overall deal (whether its more cash flow or more equity). You are putting in the same amount of money as your partner AND you alone are handling all the hassles with maintaining and managing the property. I would not accept an even 50% split in this scenario.

Now if 50/50 is the only way that your partner would do this deal, then you have to weigh if its worth losing the deal because he/she would pull out. If i had no other way to do the deal i would probably go ahead with the 50/50 if the deal is good enough.