All Forum Posts by: Robby Hogle

Does anyone have a good recommendation for a Michigan based bank or credit union that does cash out refi on investment properties within 6 months of ownership (I.e. No seasoning period requirement)?

I have a SF home in southeast Michigan that I purchased for all cash in May. The renovations are almost complete and I’d like to pull out my money to reload for additional investments

Are your NOI numbers above monthly or annual NOI?

As someone mentioned above, a HELOC could be a great option if you have enough equity in your primary residence. Huntington will do a HELOC up to 100% of the appraised value of your primary home (I'm sure others do too).

Underwriting fees make small loans tough...HELOC has minimal upfront fees. You could also just use as a bridge to get deal done and give yourself more time to find a private lender.

Seller financing is another potential option if seller is willing to do so

Assuming you have already chosen an area to focus your search on (which is a whole separate evaluation process)...

1. Is there a way for me to add a value to the property? Add a bedroom, upgrade finishes, etc

2. Try to stay 3 bed room or higher (tends to have less turn over)

3. Minimize my cash left in deal (can I purchase and rehab for 75% of ARV)

4. Is the house on a good street / in a good neighborhood. I define good as the ability to get reliable tenants (I.e., not a D class neighborhood or part of town)

5. Am I comfortable with my ability to execute the rehab and can I minimize surprises post purchase when I walk through the home

Do you have debt on the property or is it free and clear?

If the latter, have you looked at getting a hard money loan to rebuild and then refi or sell? If you can find someone to lend to you based on ARV you might be able to raise enough fund to fix the property and then keep it. You give up a lot of equity in exchange for debt, but you avoid selling at bottom barrel price. There are people that buy fire damaged buildings/houses but it is a smaller buyer pool looking for very deep discount

@Fred Avery Did you buy a duplex before figuring out what the rent potential was?! :)

Rentometer.com is a good tool to get ball park rent estimate. Also, talk to 2-3 realtors and see what they say. If they provide wide range between the three of them you might want to talk to a few more

Good luck!

As with most things in life I don’t think this is just a blanket “yes” or “no” answer.

It does a good job for cookie cutter homes (I.e., a lot of the same looking houses in a subdivision). Probably gets within 10% accuracy?

Terrible for any home that is unique, special situation or a C class neighborhood with mix of home quality (renovated vs run down).

I find Zillow very useful for pulling my own deal comps though. It is manual (i.e., use filters to look at recent deals within a given area) but great when I want a quick answer vs waiting for realtor to send me comps

Also, you could AirBnB if you have extra rooms in the house to rent out.  Maybe that helps you stay with a little extra income...

Sorry to hear that but at least you are being proactive!

I think it depends on your long term plans...

If you love the home and want to keep it in the long run, you could rent out for now and potentially move back in when you feel comfortable enough financially to do so. That said, it will probably be a cash flow negative rental if you only get $200 profit after paying the mortgage. But if this is your dream home, maybe it is worth losing a couple hundred a month to keep it?

If you don’t have an emotional attachment than sell it and break away clean. You could them look to house hack. Move into a duplex, triplex or quadplex. Let others pay your mortgage!

Best of luck with everything!

Beautiful home. Congrats!!!