All Forum Posts by: Samuel Carmichael

Luka Milicevic do you have the bank pre-commit to refinance each property? Or is this commitment letter more along the lines of. We will refinance if you have a 25% equity position etc etc etc

Thanks great info all around Stephanie Potter can you resend the colleague request? I can't see it.

Does anyone know any lenders that will refinance a hard money loan in 1 or 2 months so I don't need to wait out the seasoning period? :/'

I would also be interested. From Pawtucket RI

How long interest only?

Plot twist, @Anthony Thompson this house is being sold through RI HOUSING, and the Rhode island renewal program, and the appraisal is also being done by them.  So it seems as if they are buying back their own property. ..Would they benefit from having the appraisal so close to the purchase price? 

@Zach Quick yes it only changes my imaginary equity. That is very true.  I am curious if anyone else has expierience with what @Russell Brazil was saying, and that the appraisals usually come within 5,000+ of the purchase price. 

Russell Brazil that is very possibly true. In that case is it possible the comps I hav run in the neighborhood are closer to the actual resale value? Because I see smaller homes with only 1 bathroom, selling for 175,000 Because this was a foreclosure bought under asking price. But it is almost +\- 5000 turnkey.

I guess the question is for those who have bought multiple single family house investments. Would say 36,000 after 5 years be worth it to you? Because I will be paying the taxes, utilities, PMI...and alhotugh I will have a one renter to hedge those fixed costs.....it still wasn't part of the plan.

Hi Thanks for the replies. 

The appraisal allows me to buy the house. So that is not the issue, I do not see the 20,000 as a gift to help me get into a property because the ultimate goal is not about my housing it is about making money on the deal. I have to live in the home for 5 years, so I won't have to pay it back. 

So I can still get in this property no money down, and with 26,000 in equity. But I am looking for a bigger number, I plan to stick to the 50,000 in equity buy plan...but obviously after this first deal it is going to take  a lot of cash. 

This was just a creative way to finance the first one and get some instant equity. But I was very suprised by the low number, and it is really only worth it to me for say.....40,000 at the least. 

@Anthony Thompson the latter. 

the appraisal is coming up with a # I didn't  expect and that therefore makes you think it doesn't have the right equity/debt ratio for my investment plan. 

Which is to buy 2 properties a year at 70%LTV, hold for 5 years each (give or take) and sell after a 10,000-15,000 renter loan pay-down. Target is to make 50,000 on each deal. Two homes a year. And use the profits from the 2 deals a year to finance a larger MF.