All Forum Posts by: Robert Medina

Thanks for the reply’s. So let’s say I wait another year and rent it out during that time. Is it more difficult to get a loan on a rental property? My concern is with the house that my dti numbers will remove my options for a loan. Are dti numbers different with primary vs rental as far as getting a loan? I know that rental income is considered but not 100 percent of it and is there a certain amount of time renters need to be in to show that I’m good at renting the property?  

Hello I have attempted to brrrr a property recently but didn’t quite go as well as I wanted. So I bought a single family home for 315k that was considered inhabitable. I was able to get a private loan which I used to purchase the house then I used my own money to rehab the house. Once the rehab was done I refinanced out of the private loan into a conventional loan as a primary residence. After all the fees from closing and paying back the interest on the private loan my new loan was at 335k. I had an appraisal done for the refinance and it came back at 515k which seemed pretty good. now I have been in the home for a year so I can start renting it out for a decent amount of money that would pay the mortgage and I would get about 600 in rental income on top of paying the mortgage. I would like to purchase another property so I looked into a heloc and a cash out refinance and it looks like I would qualify for about 75000 max which would be enough to put a down payment on another property and rehab it, but I still haven’t paid myself back from the original property rehab. If I pay myself back I’ll only have about 50k left to buy something which I don’t think is enough. I’m trying to figure out how I can pay myself and buy another property. Do I just pay myself back with a equity loan then start renting out the property while paying off the loan and refinance later? Or pay myself back with a heloc and then refinance out of the heloc later on? Is a second mortgage (heloc) or cash out refinance a better idea? Did I just not do the math right on my purchase? Meaning there needed to be more forced equity? My goal is to get a duplex or triplex. Something with more doors and more potential. Or do I just need to rent it out and accumulate more equity first?  Any suggestions would be greatly appreciated. Thanks

Thank you for your message. So what if the heloc amount is enough to cover 20% down on investment property and cover renovations. Would that make sense to do? I do have some money that I need to pay myself back from my current property from renovations. I’m just thinking I need to start at a clean slate. Like maybe I could pull enough out from heloc on primary residence to pay off debt and then rent out my primary and use the extra cash to payoff heloc and then do another heloc once the original one is paid off. Then I would have a little more equity and like you said at that point it would be a loan against an investment property which is tax deductible right? 

Hello so I am in a situation that I am trying to figure out with rentals and loans. Right now I have 2 properties. One being a rental and the other my primary residence. The rental is my first of hopefully many and that being said the rental home I purchased as a primary residence and after a year I Decided to rent it out. I have been renting it out for almost 3 years now. The rental is not in a great area but it’s not terrible. The rental has some equity but not much. It was definitely a learning experience more than anything. My primary residence I have been in for a year now and my plan was to do a heloc and use the money to buy another property which would be an investment property purchase. The house has enough equity to buy a fixer upper and have some left over cash for renovations but just barely enough. I would be cutting it pretty close. I have thought about renting out my primary residence because I could potentially have someone else paying my mortgage and the rental income would pay the mortgage and also put about an additional 600 month in my pocket. So my question is is it a bad move to pull out all of the equity now and look for a fixer upper to rent out? Is it a better idea to wait longer and build more equity and then pull out more money? Also can I buy primary residence often? Like every year can I buy a primary and then turn it into a rental? Is it hard to pull equity from an investment property? If I waited longer and was able to pull more equity then I could possibly buy a multi family property like a duplex or triplex. Basically I’m just trying to figure out which direction to go in. Thanks

Hello so I am currently working on a deal for purchasing a commercial/residential property and the seller is willing to do a seller financing agreement with good terms. My question is I recently opened an LLC and am trying to figure out if purchasing the property under my llc would be a good idea. Being that it's seller financing it's a balloon payment at 5 years so I will need to refinance out of the loan before the 5 years. Will it be harder to refinance out of the llc down the road? What about doing a quitclaim deed? Like purchasing the property under the llc and then doing a quitclaim deed into my name and then refinancing. The reason I'm looking into using llc is because it's a commercial property with 5 units so there is significantly more liability with tenants and their customers and if there ever was a lawsuit I'd like there to be an llc. Unless my thought process is completely wrong. I'm open to any ideas. Also what about tax implications. Is one route financially smarter than the other. (LLC vs not) the net income is estimated at around 8000. Also I was going to open a business account for the property which requires Ein.

I just listened to managing rental properties and there are a few suggestions to use www.biggerpockets.com/ bookbonus to get forms but every time I try the website nothing downloads. Does anyone know why it doesn’t work or if it is something that is even still available. 

Hello I am just finishing up a rehab on a property in Denver and I will be advertising for some tenants soon. Does someone have any good recommendations on where I can get or create a good lease. Are there any free options or low cost options that someone knows about. Let me know. Thanks 

What is the most effective way to find a real estate agent that is well versed in investment properties 

What is the most effective way for finding a great real estate agent. 

I tried using a conventional construction loan. It was a homestyle loan but ran into so many issues with underwriting. It seemed like one thing after another. I started off with conventional construction loan and I even got a cosigner to help move things along and then like I said underwriting was relentless. So then I was going to try an fha construction loan or i have the private loan option. The problem I am having is the lending company jerked me around for so long that I am already 60 days in. I've had to request multiple closing extensions and the seller is running out of patience. So that is also where the private loan is helpful. It's much faster with way less red tape. I originally started with one lender and chose another because the first lender was giving me hell about this being my second home purchase in one year. The second lender had no issues with this being my second house but has requested over 60 documents some being ones I've already sent and during the process of conventional loan process I paid down points which left me at 8% now they are offering the fha but I don't even believe they can get it done and the construction part of this loan has been hell too. They have had my general contractor resubmit his bids 3 times. He's about to give up. I believe with the 203k loan I can refinance right away but I cannot use ARV appraisal only before repairs value. So I thought going for the private loan would help a lot. He is someone I know from past investments but I've never used him personally.