All Forum Posts by: Robert Buck

searching for a REI friendly insurance company that covers Maryland.

While I'm at it though I just got a quote on a 4Plex that purchase price is 120K ARV Comps 280K. Insurance company has replacement cost at 627,000. Understanding cost to rebuild is much higher than purchase in my area what re my options. Current will only go to 80% replacement cost.

low money up front is great but if your out of pocket several months of the year is that what you want? cost add up quickly then the low money up front wont be near as important.  Unless you are looking for an appreciation play and can even force appreciation with increase in rents/repairs in short term. 

I think the concern is there are real expenses that are not factored into the $466 cashflow, such as vacancy.  One unit vacant one month and your negative for two months.  I don't know the building but how accurate is 4% maintenance, it is a newer unit so that may be close.  Are all the utilities paid by the tenant? While electric and gas are separated in my area usually water/sewer/trash are not and therefore paid by the landlord.  that alone in my area would be $150-200/month on a 4 plex in my area. 

as disheartening as it can be when you get denied a loan you get let that discourage you.  Different lenders have different overlays (requirements) you just gotta keep shopping around.  If everyone got told yes when they applied for all their loans there wouldn't be thousands of threads on here lookng for loans and creative ways to get them.  Keep you head in the game and call the next lender.  

Very good point, brrrr would work best when your all in cost (purchase and rehab if needed) stay below the 70 or 75% so that you can refi your cash out lay back out of it. I've only found one property this year that I could have brrrrr and not had to rehab. So correct again most opportunities are found in distressed units.

Wish I could offer advise but posting because I'm interested in the answers you may get.

The new loan will only be 62% of the after repair value. From what I've found so far most lender will go UP TO 75% some 80% but I'm still below either. For numbers If the house after repair value is 100k Lenders would go up to 75k on a loan 75%Ltv But I'm only at 62%. Which gave me all my out of pocket investment back plus a little and still has a decent cash flow.

The brrrr is Buy Rehab Rent Refi Repeat. So if your buying a complex for 400k and putting down 250k yes you would need a final property value of $533,334. That would allow you to refinance and retrieve your initial 250k out of pocket to reinvest it into the next property. That's assuming you can finance up to 75% in the multi unit. I'm new at this but unless the property you are buying is significantly undervalued or needs rehab it's going to be difficult to brrrr. If it does need rehab you have to add the rehab cost as additional investment that you would need to pull back out. Much different scale but example of a deal I'm doing now with the brrrr in mind Bought a SFH at 60k put 25% down so 15k plus 6k in rehab cost. That brings my total cash outlay to 21k. Currently doing a cashout refi pulling 25k out (my full cashout lay plus). Property still cash flows about 35% of monthly rent and the new mrtg is only about 62% ARV. I'm going to use the cashout to purchase my next rental. Hope that all makes sense

I just bought two houses this march and wife isn't on the deeds nor did she have to sign at closing. We keep it that way so we can each do 10 mortgages before we hit the Fannie Mae troubles.

I may be totally off on this but in any real estate deal/sale. If your wife is required to sign at closing to sell it she would have been required to sign the listing contract with the agent when it was listed. If she didn't sign the listing then everything after that is void. The listing agent should have known this, if she isn't on the deed then not sure why she would have to sign at closing. I've bought and sold properties in only my name that were purchased before and after I was married. Unless your state laws are different.