All Forum Posts by: Taylor Matthews

@Oleg Shalumov don't line of credits only apply to the maximum amount that you pulled your loan out for originally? EX: My initial appraisal value was $610k on the home. The line of credit would go off of that appraisal correct? Or would I get a new appraisal for the line of credit based on the renovated value of the home?

Hi all,

I own a 4 unit multifamily and I'm about to start the process of a cash out refinance on the property in Oakland CA, in the San Francisco Bay Area. Does anyone have any recommendations for commercial/portfolio lenders that they have used before for an LLC cash out refi? The property is currently in my name however I will be wanting to put it into the LLC name either during or after the refi.

Thanks!

@Lee Ripma I'd love to hear a bit more on how you're getting the commercial loan on the 4plex. Are you just using a special loan officer that you found? I was under the impression that you needed 5+ units to get a commercial loan.

Thanks!

@Oleg Shalumov thanks! I'm more asking about whether or not there needs to be a physical 5th unit or simply because the county assessor's website mentions 5 units, can that be used as a basis for the appraisal. It may be something that some loan officers can do and others can't. Just asking about personal experiences.

Hey all,

A quick background - I purchased a 4 unit property in the Oakland, CA area that was distressed and severely under rent. I was able to renovate the four units and get the rents over 2x what they were before so that cash flow per month is around $2.4k free and clear total. Rents went from $3,400 to $7,450. I'm getting ready to refinance the property and I'm learning that income based appraisals are rare for properties like this. And if I don't get an income based appraisal the value will be significantly less - close to $400,000 less property value. 

On the county assessor's website, the property is ACTUALLY listed as a 5 unit property and the utility companies treat it as such (I.E. Waste management forced me to pay for the 5 unit property rates even though there are only 4 finished units.) I financed the original loan as a 4 unit however now I'd like to switch to take advantage of the 5 unit income based approach. Has anyone run into a situation like this before?

TL:DR First loan was 4 units however county assessor claims it is 5 units. Can I claim 5 units on the cash out refinance?

This may go nowhere however it's an interesting anecdote and something I am trying to solve. 

@Arlen Chou I did tell the people that they would need to move. They have only been there for a day or so. They do not want to leave after talking to them as they have paid money to the "landlord" already. I did talk to a lawyer and brought this up with the Oakland police department. They sent out a car to take ID's and statements however they did not evict on the first visit. Working with the department to get them out asap. 

The utilities are under my name which is a plus as that can prove residency for me and not them. 

Will keep everyone updated. Thank you!x

Robert -

Will do! Any advice to make sure we can tell a happy ending tale?

Hi Bigger Podcasts Community,

I have a very interesting season and would greatly appreciate some guidance. 

My partner and I recently purchased a 4-unit rental property in Oakland in January and are finishing up renovation for the two money-maker units out of the 4. The property includes two other units that are in poor condition. We will begin renovation after tenants move into our two renovated units. Here’s where it gets interesting:

One of our units was blocked off with wood planks, but there was an individual (we have no idea who they are) who ripped them out, took pictures, and drafted a fake written lease contract. Let’s call this person Mike. Someone took up Mike’s offer, and has now moved into this unit under the fake contract he made.

We are in the process of reading up on Oakland laws and contacting the authorities. Posting on the forums is our other first step to gain some extra insight. As unique as this is, has anyone experienced this? Regardless, is there any insight the community can provide for us?

Thank you in advance!

Hey Andrew. I'm in contract on a property in east Oakland so possibly more or less dangerous than what you're looking at (probably more). The neighborhoods really can be a street by street scene when it comes to violence and crime. The street I am in has multiple properties that are run down and dilapidated however there are quite a few that are renovated and look very nice with nice yards and backyards. These ones tend to have fences that go around the property however. I can go 2 streets down and find garbage everywhere with houses that look as though they haven't seen work in decades and then 2 streets the other direction find a nice homey street with remodels and yards.

It's really up to your preference as all of Oakland will probably become a lot closer to the SF market in the coming years as companies move out and prices go up all around town.