All Forum Posts by: Ash Hegde

You can either use a commercial product like a DSCR loan if you keep it in the LLC, or transfer the title to your personal name for a conventional loan.

Since you own the property, yes when it's rehabbed and appraises at the new number you will have equity equal to the appraisal value less whatever you owe the HML. Based on your numbers, if you refi at 80% (688k loan) you'd only be in about 11k of your own cash with 172k of equity.

At 24 years old, keep the investments going. The "best" answer in my opinion would be to buy a multifamily and live in one of the units, but that doesn't seem to interest you. That being the case, I would rent and keep buying investment properties.

You got yourself a home run there, it happens but it isn't the norm. You bought and refi'd right before prices went through the roof, so you are getting the benefit of higher rent with low costs. The extra revenue from the Airbnb room is icing on the cake. Congrats! 

Hurricanes and fraud, the more they pay out the more they charge the next time around. Many insurers are dropping people or leaving the state entirely. 

Agree with others, we can't know for sure about this deal without more specifics but in general rent to own favors the seller. 

You're on the right track and setting yourself up to succeed! I would say to watch out for the trap of looking for the absolute cheapest property, and instead look for a nicer (but still affordable) area so your tenant quality will be higher and you will have more stable rent and property appreciation. 

Another possible issue even if you can find a high LTV loan, is that with the higher rates you may not be able to cash flow. Getting additional cash above and beyond your costs on a BRRRR does not always happen. If you need additional cash in order to keep going then selling might be your best option at the moment. It may make the next BRRRR easier if you can pocket a profit on this one.

There are alternative options, but as mentioned, they are going to be more expensive. DSCR is probably your best bet if you can't prove personal income. If you are self employed and have been for 2 years, your tax returns can be used to document income for a conventional loan.

With the standard disclaimer of "check with your tax advisor," the mortgage interest paid while the property is a rental (current mortgage or refi) should be tax deductible.