All Forum Posts by: Rob Bianco

I’m about to do a 1031 exchange in the next 45 days of upward of 1.5million (30% downpayment) with financing.

I also own 4 duplex’s that outright that I wanted to cash out refinance which could boost my purchase power to basically 3million but I don’t want to put myself in a position of being over leveraged

I figure maybe it makes sense to do the 1031 exchange, use my other properties as a safety net against my debt, and then in 6-8 months proceed with the refinances of my duplexes and buy more real estate... Thinking July 2021.

I can’t tell if I’m being smart and conservative or just being a scaredycat. Someone let me know...

I quit my job and am starting to do real estate full time now but have run into a bit of a snag. All my rentals are residential property and we share the loans for each and we have reached our limit with Fannie Mae & Freddie Mac.

Where does one find a portfolio lender? What kind of rates should I expect? Is this the only way to expand from 10 properties to 100 properties without getting into commercial lending?

When doing refinance what LTV Ratio do you guys think is good? I've heard 70% is the norm but my realtor suggested 60% LTV to be more risk averse.

I'm thinking with 70% LTV it will give me more money to buy more real estate which ultimately provides similar safety as my portfolio grows and accomplishes the same thing as a 60% LTV ?

This is for Residential Multi-Family Investment Properties. All my properties are in B-grade areas with pretty good tenant pool.

I spent $25k to renovate (2 bathrooms and kitchen floor)

After about a year I decided to renovate my condo using my own money. Original purchase price was $645k @ 3.375% over 30 yrs and ARV brings it to anywhere from $750k-$800k in value and I hear rates are lower.

I have no intention of moving anytime soon but would it be wise to refinance and take some cash out at this juncture? On the conservative side I figure even if it appraises for $750k and I use a 70% LVT I'd walk away with nearly $58,000 in my pocket after closing costs.

Sounds like a slam dunk. I think I just need someone to tell me I'm making sense.

Quick background: I own all my units in cash and plan to refinance once COVID-19 blows over

I currently have a policy on each property the pays out on an Actual Cash Value basis. Coverage limit is based off of the purchase price. My average premium is roughly $1500 per property with a $1000 deductible.

However, a buddy of mine recently had an electrical fire and his whole investment burned to the ground, so now I'm thinking I should have better coverage, but it's rather expensive where claims are paid on a replacement cost basis which would run about $2650

As far as I understand it, my policy would cover a lot of the cost of replacing things like a roof or damage from natural disaster or fire etc... but not 100% whereas the replacement cost policy would simply cover all costs at the expense of devouring my cashflow.

I'm just wondering what most people have and what someone would recommend?

Coronavirus closed my business and I can't really spend what money I have in my bank account at the moment. However, I own all my rentals in cash and my buddy recommended I open a HELOC on the units so I can get the bank to write a check when a good opportunity comes around so I can scoop up some extra properties - then 6 months later refinance and pay back the HELOC.

Wondering if anyone has any insight into this strategy and what kind of risk I'm opening myself up to especially moving into the months ahead.

Thanks

Curious as to how realistic it is for everyone to social distance for an extended period of time? Almost seems more practical to let young people back to work and instead quarantine high-risk candidates. Otherwise we're talking about months of record unemployment, job loss, and foreclosure/eviction. I would rather catch the virus than endure all of that.

Honestly, I just want to make sure I have manageable monthly payments and don't over-leverage which is why 60% to 65% was my target

@Justin White Thanks for your response. So a financial institution wouldn't let me finance 60% of the property's assessed value? 

Side question: If they did, would that be too conservative?