All Forum Posts by: Pete Perez

@Jimmy Suszynski

I'm living in the unit I'm rehabbing and I already rent out the other side. The unit I'm occupying will be rented out once I'm done with the rehab. It will cash flow after both units are rented out.

@Andrew Postell

HI Andrew! Thank you for the reply. I'm working with a couple lenders and I'm basing the numbers of the LEs they gave me. I do have to order an appraisal, so i agree that will determine how much I can actually pull out.

I bought the duplex back in 2017 with my now ex-wife. I didn't have any equity when we split up, the divorce left me $18k in the hole, and I was utterly defeated about the situation. I have been occupying one unit while renting out the other ever since. I have since been able to get myself together and paid off the debt, and luckily the market has appreciated enough to where I have a lot of equity. I am trying to find the best strategy for me moving forward. 

I've put $15k of my own money into improvements already. I can either finish the rehab and sell it, or rent it out. I don't have the money to rehab it, so I am planning on a cash out refi at either 60% LTV or 75% LTV to finish the rehab, and put some cash in my pocket. The numbers are listed below.

My goals are still ambiguous to me. Long term I want cash flow, but I know that its a lot easier to make money if you already some. My thought is that if I go with Scenario 2 I can a property that cash flows, $185k in equity (day 1), and I can walk away with $60k in pocket after the rehab (if I spend the full amount). 

What am I missing here? Is there a benefit to leaving 40% equity in a property that I don't see? Does my thinking make sense to more seasoned investors? Don't be afraid to poke holes in this it will only help me moving forward. 

Thank you! 

I bought the duplex back in 2017 with my now ex-wife. I didn't have any equity when we split up, the divorce left me $18k in the hole, and I was utterly defeated about the situation. I have been occupying one unit while renting out the other ever since. I have since been able to get myself together and paid off the debt, and luckily the market has appreciated enough to where I have a lot of equity. I am trying to find the best strategy for me moving forward. 

I've put $15k of my own money into improvements already. I can either finish the rehab and sell it, or rent it out. I don't have the money to rehab it, so I am planning on a cash out refi at either 60% LTV or 75% LTV to finish the rehab, and put some cash in my pocket. The numbers are listed below.

My goals are still ambiguous to me. Long term I want cash flow, but I know that its a lot easier to make money if you already some. My thought is that if I go with Scenario 2 I can a property that cash flows, $185k in equity (day 1), and I can walk away with $60k in pocket after the rehab (if I spend the full amount). 

What am I missing here? Is there a benefit to leaving 40% equity in a property that I don't see? Does my thinking make sense to more seasoned investors? Don't be afraid to poke holes in this it will only help me moving forward. 

Thank you! 

Really?! 0 fees and no appraisal? Is this with typical brick and mortar banks, or with a smaller lender? I was under the impression that rates and fees were higher. This is actually really exciting news. I talked to Alaska Credit Union and they told me the rates were adjustable up to 16%. I thought that sounded crazy. I should've done more due diligence and called another bank. 
 

Wow that is a seemingly very fast process. What was the rate SOFI offered?

@Dave Spooner HI Dave. It was a little confusing now that I read it again. I'm renting one unit and living in the other. I'm current rehabbing the unit I occupy.

Everyone- thank you for the replies. I am currently looking into HELOCs with institutions that are waving the appraisal. I'm looking into this because I don't want to pay for an appraisal since I'm worried it won't appraise high enough to borrow what I need. The search continues

I have a duplex in Renton WA. I am renting one unit out and living in while rehabbing the other. I am wondering if its possible to borrow equity in the property to finish the rehab?

I owe $330k and ARV is $600k (based on 4 recent sales in the neighborhood). I need about $18k to finish the rehab. Long term goal is to finish the rehab, refinance to recoup some of my out of pocket rehab costs, keep it rented long term.

Can anybody shed some light on what my options are? I have talked to only a few banks and they say I can't borrow or refinance until I complete the rehab. The unit I am living in is partially finished.

I have a duplex in Renton WA. I am renting one unit out and living in while rehabbing the other.  I am wondering if its possible to borrow equity in the property to finish the rehab?

I owe $330k and ARV is $600k (based on 4 recent sales in the neighborhood). I need about $18k to finish the rehab. Long term goal is to finish the rehab, refinance to recoup some of my out of pocket rehab costs, keep it rented long term.

Can anybody shed some light on what my options are? I have talked to only a few banks and they say I can't borrow or refinance until I complete the rehab. The unit I am living in is partially finished.

@Quandra Adams

Seems like most people touched on the basics. We put in baseboard heating recently in one of our units. One thing I noticed is that I can turn the heaters on for an hour, and the relative temperature would increase so a comfortable setting, but the unit would stay on because we don't have great insulation. I've seen that a lot online where people will blame the heaters for a problem that is cause by insulation issues. But I think they are great solutions for mid-low end rentals. 

Best of luck with the property!

Pete