All Forum Posts by: Stephen Miller

Update***

well it's been a wild year now. I got it rented for $1400 in December and have had some trouble getting refinance. I probably should have reached out to better lenders at first. My credit was tanked and then some 0% interest cards expired so I have a pretty hefty bill above rent right now. Got most the way through a refinance until the Coronavirus. Now I'm almost through another lender and I happen to have higher credit score because I keep paying a bit extra on cards. Overall wouldn't recommend the approach tbh. It's been stressful headache. The bright side is pre corona I had 60k equity based on appraisal. Waiting for new appraisal this week 😃

 Hi Alex, 

That is good to hear. I'd love to get more info about this. I have another rental in land contract that I'd like to put under LLC and refinance as well. Checking out the website now.

Hi Ben,

Yes unfortunately my credit card companies decided to lower my credit limits significantly as I used more credit in the rehab. So I would have been about 55% utilized but now am 87%. Didnt plan for the credit companies lowering my limits across the board. Anyway, does that mean I pretty much have to get the score up to 620+? I know it's completely due to credit utilization levels

Hi Biggerpockets community

I'm looking for a lender to do a 30y Cash Out refinance for a property I purchased in cash and rehabbed. The house is rented and I purchased and rehabbed with a personal loan and credit cards. It ended up hitting my credit pretty hard and have a 575 at this point down from 760. I have a willing cosigner. I haven't had much luck finding even lenders who do investment property. I've owned for 7 months. Anyone have someone I can call?

Hi Tony,

Still haven't made it through the rehab. Made some decisions to do a good amount of the work myself in the beginning and underestimated the time. Pretty close to complete now. Unfortunately, as Ive gotten closer I have had credit cards start reducing my limits so I'm getting close to hitting my max on almost all of them. Credit score is at 580 now. Going to be at around 4000 over budget. But all in all I think it will still be a positive cash out if I can get the loan. I'm comfortable making the payments on credit cards and personal loan if I can't find a bank to refi. I'll have to update this once I get it rented and start looking for the loan..

good luck 😃

In the same boat in Davison, MI. I plan on calling financial plus credit union, Elga credit union, Michigan State credit union (they have some unique car loan options so might be flexible), and finding others to get a portfolio loan. Once it's rented I'll start calling.

Thanks @Kao Saeteurn. We'll see how it goes. Probably bought a bit to high for first one. 

@jillian Jones that's good to hear I figured portfolio loans require the same DTI as conventional. Thank you for easing my mind. :)

Hi everyone, I'm Stephen Miller and I'm a newer member to BP. I got my first BRRRR property two months ago (2nd rental first was LC). 4B/2B

I chose to use my high credit score and use a personal loan and 0% interest credit card check offers to fund the deal. Not sure how I will end up refinancing because my credit score went from 780 to 630 because of my high utilization and credit inquiries. Here are the #s:

Purchase: 56,500

Repairs: 36,000

Closing cost: 2300

Prop Taxes: 3300/year

Water est (LL paid): 1200/year

Maintenance est: 1000/year

ARV: 120,000 (conservative imo and could be 140k based on two comps in neighborhood)

Rent: 1200-1500 (1200 conservative)

Let me know if I'm missing #s

I'm using cash from my CCs that had 3-4% balance transfer cost with 0% interest for a year. Personal loan from sofi at 10.6% for 46,000. Then have additional 70k in limits after pulling out 25k in 0% CCs. I'm using 0% CCs for all DIY materials and personal expenses too keep cash for roof and contractors (20k). 

I knew this option would crush my credit score but didn't expect such a huge drop. So I'm curious on your experience with trying to refinance with this. My utilization will be too high if they don't count rental income. And Im working on cutting rehab costs with more DIY for bathrooms to keep risk of lower appraisal down.

Also, I'm willing to call every bank and credit union in the state to make this deal end up with me paying nothing so the BRRRR works as intended. But also think I can skate by for a while with personal loan and cc payments if I get a good rent price. Sacrificing cash flow in the short term.

I've got investors lined up for a 12 unit apartment building downtown and need this to work as a case study as proof.

Any comments and suggestions are greatly appreciated 😀