All Forum Posts by: Paul Cataldo

Quote from @Nick Bednarczyk:

Based on a refinance rate of 8.5 %. the numbers do not work to you advantage. And yes, your right ,

$ 900 a month cash flow isnt enough to live off of in any market. Many investors have started off with less and leveraged their way to financial freedom. your just not there yet. My dscr rates are started at 5.75 % and go up from there.  I'd be happy to run some numbers for you . Best regards

Ps.  By the way, the 3.5 to 4.5 % fixed rates are over. That was an anomaly. So lets all move forward together,

Yeah the anomaly is certainly over. But hanging onto to some of those rates isn't always a bad idea. I just need the equity cashed out. I will contact you, 5.75% might make sense. Would just have to see the PITI monthly to know. Thanks for the tips!

Quote from @Haider Tiwana:

Rentals for preserving wealth

Flips for building warchest 

and Obviously decide exit strategy in advance. What's your LTV today? if it's appreciated quite a bit sounds like you need to sell and move on

Hey Haider! I agree with that 100%. My warchest is slacking right now. I have three properties, prob need to sell like you said. LTV is the subject property is about 49%.

Quote from @Raymond J. Rodrigues:

A rate of 8.5% for DSCR cash out refinance seems a bit high.. Is that 80% loan to value or 75%? You should be able to get something in the high 6's, 7s. It sounds like you may want to sell. If you do, I recommend reaching out to @Josh Green. He is an expert in the area and can definitely help you weigh out your options from an investors point of view! 

Yeah that was 80% LTV, I thought that was high. I'll have to shop around and see if I can get something better. I'm still going to lose all my CF on this rental it looks like. I'll reach out to Josh for sure, thanks for the advice!

Quote from @Bob Stevens:

Quote from @Paul Cataldo:

Hey Bigger Pockets folks!  

I'm a buy and hold investor with a conundrum.  I have a single family home with 130k equity renting steady as a medium term furnished rental cash flowing an honest $900/mo.  I can't live off 900/mo and the appreciating side has slowed to a stall.  I have the tools and the education now to start flipping homes in my area and need roughly 75k to get started.  

The big question...dscr refi this rental or sell it? If I go through with the DSCR refi the rate jumps from 3.25 to 8.5. The monthly payment all in jumps from $1346 to $2400 (making the cashflow disappear). If I sell it, I can pay off my car and jump right into my first flip. Is this a no brainer?

Any pointers would be hugely considered and appreciated.  

Paul C. 

 Tampa to flip with 75k?? Hmm I would think you would need much much more. 

 Hey Bob!  I would be using hard money so 75k would be the down payment/rehab.  Typical rehabs I'm looking at in TB are looking like 250-300 purchase with renovations costing around 40-60k.  

Hey Bigger Pockets folks!  

I'm a buy and hold investor with a conundrum.  I have a single family home with 130k equity renting steady as a medium term furnished rental cash flowing an honest $900/mo.  I can't live off 900/mo and the appreciating side has slowed to a stall.  I have the tools and the education now to start flipping homes in my area and need roughly 75k to get started.  

The big question...dscr refi this rental or sell it? If I go through with the DSCR refi the rate jumps from 3.25 to 8.5. The monthly payment all in jumps from $1346 to $2400 (making the cashflow disappear). If I sell it, I can pay off my car and jump right into my first flip. Is this a no brainer?

Any pointers would be hugely considered and appreciated.  

Paul C. 

Quote from @Account Closed:

Quote from @Paul Cataldo:

Hey BP folks!  

I bought a single in 2020 for 175k (almost doubled in value since) and a condo a year later (50k equity built).  

I'm self employed, my DTI is gonna scare away any bank and my liquid capital is minimal. Where do you go from here? Is it time to scale? Cashflow is good on the single (1200/mo) and ok on the condo (400/mo).

Was thinking of building an arbitrage portfolio and putting all profits in a side account to pursue DSCR loans on semi rehab properties but its such a long game.

Am I missing the obvious?  Scale into commercial?  Hold and be happy with where I’m at?? 

We need to know what your goals are to best direct you. Then a lot depends on your total picture. How much capital you have to work with, how much you have to work with on a yearly basis, if you are willing to look at creative finance, what markets you want to invest in and so on. We can help you sort that out, but that's where it begins.

I think I am after the golden 10k/mo net income from real estate.  I’m not at all in the “passove income” pipedream.  I like managing amd being hands on.  

The initial plan was to build the portfolios equity until I could sell off the whole thing and get i to a 12 unit or bigger in the Tampa Bay area.  

Liquid capital is minimal right now and my income is from live music so not much to show.   Creative financing my way into another single or condo would be great.  Maybe a big move, cashing out 150k selling a couple places?? 

Thanks for the pointers!

That is solid advice!  I really need to get with some lenders and see if there is something I am missing here.  Thank you Sir! 

Hey BP folks!  

I bought a single in 2020 for 175k (almost doubled in value since) and a condo a year later (50k equity built).  

I'm self employed, my DTI is gonna scare away any bank and my liquid capital is minimal. Where do you go from here? Is it time to scale? Cashflow is good on the single (1200/mo) and ok on the condo (400/mo).

Was thinking of building an arbitrage portfolio and putting all profits in a side account to pursue DSCR loans on semi rehab properties but its such a long game.

Am I missing the obvious?  Scale into commercial?  Hold and be happy with where I’m at?? 

@Raymond J. Rodrigues: I'm looking to get an investor loan with 15% without showing documentation if at all possible

@Paul Cataldo are you looking to go conventional with 15% down payment or a loan that requires no income documentation? 

Quote from @Paul Cataldo:

Brooks! Any advice on finding investor loans at 15% in Pinellas?? Would love to take advantage.  Just bought a condo on the Safety Harbor line with an investor loan (20% down)  Thing is cashflowing $900 a month two weeks after closing.   Closing costs were astronomical, interest is up around 5%.  Still a great deal! 

Brooks! Any advice on finding investor loans at 15% in Pinellas?? Would love to take advantage.  Just bought a condo on the Safety Harbor line with an investor loan (20% down)  Thing is cashflowing $900 a month two weeks after closing.   Closing costs were astronomical, interest is up around 5%.  Still a great deal!