All Forum Posts by: Steven Correale

Looking for some advice. I am currently on a 30 year fixed at 3.625% for a multi-family that is also my primary residence. It was being used as an extended family for the last 4 years, one unit will start renting out at the beginning of 2021.

I am wondering what would be better financially, or if one is more advantageous from a tax perspective once it becomes a rental.

My options are to either do a cash out refinance (~$100k out) on a new 30 year mortgage at ~3% or keep the current balance and refinance to a 20 year mortgage at ~3% and get a new HELOC. Both options come out to the same monthly payment.

I have always payed extra towards my principal and have had the mind set to pay off my mortgage as soon as possible, but now that I will be collecting some rental income, would it be better to leverage?

Definitely the click lock joints too, not the glued kind

@John Fider

If you sign up the Home Depot Pro account, you can receive volume pricing for orders over $1500. I think it saved us ~$5/box.

We bought the vinyl that was around $3.15/sqft has the padding built in. I would recommend it, seems very durable and easy to install.

@Cody Moyer Thanks for the fast response!

How does the financing work when partnering on a deal?

Do all partners need to be on the loan?

Is it best to open an LLC (I have no experience with opening one)?

How does putting in offer work with partners? Do we all need to be pre approved? Are we all on the offer or does it not matter until closing?

There is no operating agreement in place yet, those details will be worked out soon. Should we each have a separate lawyer or just one to review the terms?

Thanks,

Steve

Does anyone here use the Fundrise app for real estate investing?

@Brennan Doherty

House hacking a small multi-family in Lowell is a great way to start. If you can swing it, I would recommend putting 20% down on the property to avoid paying PMI. If not FHA has some nice low interest rate loans with 3.5% down.

If you are going to BRRRR a property as your primary residence, look into a 203k FHA loan.

Good luck man!

Hi,

Im looking to BRRRR in the Boston or Southern NH area. I have a mix of cash and a HELOC available to use, but it seems it's not quite enough to buy most properties in cash in my area (currently working on finding more off market deals to see if that helps).

Would a hard money lender work in this situation if I needed to raise capital? How is payment structured through the lender, monthly interest, lump sum fee, equity? Does anyone have any advice or experience in this?

Thanks,

Steve

@Frank Hinck

Thanks Frank, I think that is what I needed to hear.

@Jonathan Bombaci

Hey Jon. I won’t be able to make it on 8/12 but looking forward to the next meet up in the area.