All Forum Posts by: Ryan Prange

I have 2 long term rentals both at 7.5% interest rates.

1. estimated value: $950k, outstanding mortgage of $574k

2. estimated value: $900k, outstanding mortgage of $514k

#1 cash flows nicely for me at $2500/mo, but #2 leaves me at a $400 loss each month, mainly due to the interest rate. I'm wondering if anyone has any creative ideas for how I could consolidate 2 loans into one that MAY have a better rate. I have a good income and credit score. My loan broker tells me to not even think about 15yr mortgage (i don't know why?). So I'm wondering if I was to get a business loan based on the rental income of the properties and secured by the properties themselves. Is this a thing? I'm still new at this and I own the houses in the name of my trust, I haven't set up any sort of business entity for them yet. I'm happy to pay someone's consult fee if they can help me towards refinancing to a better rate that helps me cash flow on both properties. Thanks BP community!

hello everyone, over the past couple of years we have purchased two single-family homes and also built a guest house on our property. I now have three tenants and I lease part of one of the properties back to my business as a storage yard (so 4 streams of income). My question is ... if I would like to keep doing this or work in fix and flips or other forms of real estate investing, how should I structure an actual business? right now I manage everything using Sessa and have individual bank accounts for each property. I keep good records and have clean books. I have loans on two of the properties and am concerned that if I transfer the properties into an LLC that the loans would be called .

My Landscape company is an S Corp so I am familiar with that business structure, but I just don't know the best way to structure a real estate company. Would I be a property manager? Would I be something else? I appreciate everyone's advice. 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $698,000
Cash invested: $275,000

3/1 main house and 1/1 ADU for total of 1750sqf. Currently leased for $4200/mo resulting in -$200/mo in cash flow. The goal is to refinance before the end of the year to ideally get a lower rate and possibly some cash out to pay back HELOC

What made you interested in investing in this type of deal?

We were looking for a long term buy and hold and rent in our community to create long term cash flow

How did you find this deal and how did you negotiate it?

I found it on redfin and messaged my realtor about it. It had long term tenants and seeing the property was difficult

How did you finance this deal?

conventional financing and used our HELOC for the down payment and renovations.

How did you add value to the deal?

we fully renovated the ADU and the main house. we also added the ADU to the tax role bumping the sqf to 1750 from 1150 overnight.

What was the outcome?

the renovations are done, we have long term renters in there now. hoping to refinance soon to get a lower rate and have the property actually cashflow

Lessons learned? Challenges?

the renovation was on schedule but i really had to push the contractor. i think i burned a bridge with them. i also promised the unit to the new tenants but needed 5 more days which resulted in a clunky move-in and having to credit them rent. Next time i will allow more time for unknowns. the house needed to be rewired and many other things needed to be done

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with Home Loan Collective, Mark Robertson and his team

Newer investor here... I would always recommend getting the heloc to have cash on hand ready to deploy. Doing that upgrade now vs later will cost less and it's best to do everything at once instead of in between tenants. Buy once, cry once.

We have a heloc on our primary and my bank just promoted a very discounted rate for 6mo. I called my guy and they applied the rate to my balance as a courtesy. So my other advice is keep your heloc at your primary bank or shop around till someone really wants your business