All Forum Posts by: Ryan Cash

How has your experience been investing in Frankfort? My wife and I are interested in that market. Prices seem reasonable for properties to earn decent cashflow/ ROI as compared to other markets. We just purchased a duplex in Kansas City but are looking for 4-10 unit properties in other markets and Frankfort is a place we are trying to gain information about. Appreciate any information you would be willing to give.

@Dick Stevens I budget 5% for future Vacancy, 5% for Maintenance, 10% for Cap Ex, 8% for Property Management so I don't count those $ figures toward my cashflow.  I am happy with a 12% return on my first property even if I can't write home about it! Thank you!

@Jaysen Medhurst Appreciate your feedback and the HELOC is a great idea. I may look into that Credit Union down the road! I am going to pass on the refinance and keep the cashflow and look to refi down the line if money is needed. Thanks again for your time

@Mike McCarthy Thank you for your insight. I was leaning on not refinancing due to the payoff being so low and interest rates being much higher.  Your math made sense and I didn't look at the break even time frame.  I won't be refinancing this property in order to keep the cashflow and use that toward future deals. Appreciate your feedback as it helped tremendously!!

My question is, should I refinance and get as much money out as I can, or not?

Specifics:

Duplex, bought/rehabbed for $210K ($60K of our own money)

We owe roughly $150K.

ARV: $265K

Interest rate on current loan: 4.875%
Current Mortage/Taxes/Insurance: $1,100/mo
Current Rent: $1,200/mo each side ($2,400 gross/mo)
Cashflow: $600/mo

We have spoken with two credit unions (and will look into more) and here is what the numbers look like.

Lender 1: Will lend 70% LTV
Closing Costs (Not including an appraisal): $6,900
Interest Rate: 5.75%
New Mortgage/Taxes/Insurance: Roughly $1,450
Cash Out Refi would be roughly $28,600
New Cashflow: Roughly $250/mo
Money into deal after refi: $31,400

Lender 2: Will lend 75% LTV
Closing Costs (Not including an appraisal): $7,000
Interest Rate: 6.25%
New Mortgage/Taxes/Insurance: Roughly $1,600
Cash Out Refi would be roughly: $41,700
New Cashflow: Roughly $100/mo
Money into deal after refi: $18,250

We don't necessarily need the refi money to do another deal or two this year but it would obviously help although it would decrease (I think) the amount of money lenders would be willing to give.

Does it make sense to refi even though we won't get close to all of our money out of that first deal, have a much higher interest rate and decrease cashflow by over 50% or would it make sense to keep our money in that deal with the much better rate and not refinance? I understand that there will be various opinions on this but am just trying to get some other points of view that might give us some direction. Thanks in advance!

My question is, should I refinance and get as much money out as I can, or not?

Specifics:

Duplex, bought/rehabbed for $210K ($60K of our own money)  

We owe roughly $150K.

ARV: $265K

Interest rate on current loan: 4.875%
Current Mortage/Taxes/Insurance: $1,100/mo
Current Rent: $1,200/mo each side ($2,400 gross/mo)
Cashflow: $600/mo

We have spoken with two credit unions (and will look into more) and here is what the numbers look like.

Lender 1: Will lend 70% LTV
Closing Costs (Not including an appraisal): $6,900
Interest Rate: 5.75%
New Mortgage/Taxes/Insurance: Roughly $1,450
Cash Out Refi would be roughly $28,600
New Cashflow: Roughly $250/mo
Money into deal after refi: $31,400

Lender 2: Will lend 75% LTV
Closing Costs (Not including an appraisal): $7,000
Interest Rate: 6.25%
New Mortgage/Taxes/Insurance: Roughly $1,600
Cash Out Refi would be roughly: $41,700
New Cashflow: Roughly $100/mo
Money into deal after refi: $18,250

We don't necessarily need the refi money to do another deal or two this year but it would obviously help although it would decrease (I think) the amount of money lenders would be willing to give.

Does it make sense to refi even though we won't get close to all of our money out of that first deal, have a much higher interest rate and decrease cashflow by over 50% or would it make sense to keep our money in that deal with the much better rate and not refinance?  I understand that there will be various opinions on this but am just trying to get some other points of view that might give us some direction.  Thanks in advance!

@Jim Adrian 
@Kim Meredith Hampton

Thank you both so much for your insight.  I am going to follow your lead with the pro-rated language.  Appreciate your time and willingness to help me out!

I have prospective tenants that will be accepted by me.  I have the unit available now but want to start the lease on the first of the month.  They are students and school starts on the 25th of this month (5 days before Oct 1)  How would I go about having my 9 month lease start on the 1st of October but allow them to get in the unit by the 25th.  I want to help them out but also don't want the rent to be due on the 25th of every month.  Can I make an addendum to the lease and pro rate their charge for 5 days?

Can I put in an ad for my rental No Felonies?  I am in Oregon.  

I have been reading up on updated housing laws in Oregon but cannot seem to find a concrete answer to this question.  If I am not able to say No Felonies, what recommendations do any of you have that I put in my ad for the pre-screening process?  Thanks in advance

I just bought a duplex.  one side is vacant and we are ready to advertise and get tenants in.  The other side will be vacant Oct 1 and we hope to have tenants in by November 1.  The property is currently on one meter and the average water costs have been $250-$400/mo from what the city told me.  That is a ridiculous waste of water!  The cost to install a separate meter is about $3400 with another $3-$400 for my plumber friend to do his work.  My question is if I am going to split the meter but I get tenants in before I do it, how would I structure my lease to say that landlord pays water until it is split and then tenants become responsible?  Or would it be best to suck it up for another month without a tenant, get the water split and start fresh with new tenants paying water from the beginning?  Thanks in advance.