All Forum Posts by: Roberto Lobrace

Nice work. I do flips like this in Philadelphia and know how challenging they can be.

Hi everyone,

I would like to get feedback from the BP community regarding my scenario. I purchased a single family home in my name as my primary residence in 2012. I have since moved out of it and kept it as a rental. I have a 30 year fixed mortgage at 3.5% and a HELOC with a variable rate currently at 4.25%, and still have approximately $100k in additional equity that I can tap into.

The other thing I have been considering is transferring ownership to my LLC. I thought this would be a good time if I end up refinancing the property. The reason I haven't done it yet is I am in Philadelphia and would have to pay the 4% transfer tax.

My questions are:

1. Should I refinance at a higher rate to pull out the equity? I would use the funds to invest in real estate.

2. Would lenders give me another HELOC to replace the current one? I thought this would be easier that refinancing, but have been told that lenders won't do a HELOC since it's an investment property now.

3. Should I transfer ownership to my LLC? I know that the rate would be higher, shorter amortization, etc. I know that I would eliminate personal liability, any other benefits I should consider?

Any and all advice is much appreciated.

Thanks,

Roberto

You should look into converting to gas. PECO also gives great cash rebates when you convert from electric.

Thanks Mark!

Can anyone recommend a reliable company in Philadelphia who fabricates and installs custom iron railings? Thanks.

Where is the property?

Hi Tilde,

Send me a PM with what you are looking to get done. I may have someone for you.

Jack, could you recommend commercial lenders in Philadelphia who do non-recourse loans?

I have done a number of deals with Valley Green Bank and they have been great. They do require a personal guarantee, but will loan to an LLC.

Great story! Where is the property located?

Hi John,

I rehab a lot in Point Breeze. The rehab cost should be approximately  $65-75k. If you are also finishing the basement and adding a roof deck it will run you around $80-90k.

Where in Point Breeze is thr property located? Feel free to message me if you have any other questions.