All Forum Posts by: Robert Siverd

I have three properties that are going to need to be filled in the next two months across Virginia Beach.  PM me and we can see if they may work.

I have had a great experience with Jacey Anderson with Remax.  She is very thorough and communication is great which I have found to be a big issue with most property managers.

I have had a great experience with Union Bank and Trust. I closed a larger commercial loan with them recently and they were great to work with. I am closing a SFR loan with them tomorrow that they are going to be keeping in their portfolio as well. Keep them in mind.

You bring up a good point. I will need to get the exact numbers from the lender tomorrow on what the new payment will be on the initial two properties and the new one to do the math. I can then see if the cash flow will be the same as it is now. That would make the deal make some sense knowing COC hasn't changed and acquired the third one.

Appreciate the thoughts.  The main drawback is that although we will still cash flow, we will be sacrificing some cash flow to get another property.  I am struggling to find a "right" answer.

I am looking for some input on whether or not a deal I am working on is a smart move long term.  My partner and I own 2 SFRs. Rent total for them is 2270 a month.  Purchase price was 100k plus 15k in repairs for one and 128k with 1k in repairs for the second.  They are worth ~270k now and we just bought them a year ago.  We are under contract for a third property at 110k which will require 3k in repairs for it to be rent ready and it will rent for $1100 a month.

The idea that we are throwing around to not come out of pocket for the third property is to take a commercial loan from a local bank with 80% financing at a rate of 4.9% 5 year term/25 year am.  The current financing on the first two is a typical 30 year traditional loan at 80% loan to purchase price and a rate of 4.99%.  The plan with the commercial loan is to finance 80% of the first two properties based on appraised value(270k with 80% being 214k) which would pay the note on their original loans(182k) and leave 32k to use.  We would use that to put down the 22k on the third property which leaves 10k to use on the 3k in repairs.  The extra 7k would either come back to us or immediately pay down the new note.  Some of that would also be used to pay the ~$1500 in closing costs on this new loan.

I understand that this increasing how much we are leveraged greatly(by 34k).  The question is whether or not the benefit of getting the third property without any additional cash out of pocket is worth increasing our debt.  I plan to get our accountant's opinion as well once we get a little further into the deal.

I would appreciate any and all input.  Let me know if I missed some data that would help to give an opinion as well.

Thanks in advance

I have had rehab work done in the past and have reliable sources, but not one person for all different jobs unless it is a larger job.  If you find that you are looking for specific tasks or a very large job let me know and I can give you the contact information.

What type of work are you looking to get done?

I am having the same issue in Chesapeake at a rental property.  Not sure how that could be connected to another city, but it is concerning.  Last months bill for a 3 people in a 2 bed 1.5 bath was $617.  Let me know if you come up with any answers.

We are continuing to move in the direction of constructing the new building.  I have a new question for the forums.  The appraisal of the building will be done soon and is going to have a big impact on our financing options.  One bank is telling me that appraisals tend to come in lower than the actual cost of a building.  Another bank is saying they have seen the appraisal come back at more than the actual costs more often than not.  Does anyone have any experience to say which way they typically see that go recently?