All Forum Posts by: Tae C.

@Mike Wood

Are you as a new home builder in essence doing a brrr type of model, where instead of buying and rehabbing, you are able to build at a cost that will give you enough equity to refinance most of your cash out?  I’m asking specifically about the rentals you are building to keep. 

@Aaron McGinnis@Adam Abdel-Hafez@Kuba F.

I have never heard of a bullet heater before, I will have to look into that more. At this current juncture, I’ve asked my contractor to monitor it more closely moving forward, but if it continues to present an issue, I will have to seriously consider this option. And thanks all for the advice regarding drywall/furnace dynamic, again had absolutely no idea!

@Account Closed

Yes, this credit union is local to here. I bet you could find a local one who'll do 100% LTV.

@Greg H.

That’s the one I had looked into. The obstacle for me was it seemed you had to be a member, which meant you had to have some kind of affiliation with military service whether directly or via family relationship. Did I misunderstand that qualification?

@Dan Beaulieu

But unfortunately not in the state of TN currently it seems...

@Mike H.

Curious - do you know any lenders that are offering HELOCs on rentals? The only one I've seen is a credit union that will only work with people related to the military in some capacity. Also, even more curious - HML who finances 100% of purchase and rehab?? Would you be willing to share the info? Also, what's the interest rate at with that lender?

@Ryan Bolt I agree with @Thomas S. re: HELOC. The way I think about it is is, it's much cheaper than hard money, and more than likely cheaper than most private money you'd find as well. Sure, in theory you're putting your house "on the line", but really in essence you're just using actual equity that you currently have in the house rather than borrowing a brand new loan. I am currently in the process of actually increasing my HELOC to open up more access to capital for future projects once my current ones are done. Also, I am in the Knoxville area - if you are interested in going the HELOC route, let me know. I am working with a local credit union who is offering me 100% LTV - the appraiser just came to my house today actually, I'm looking forward to closing on the new HELOC in a few weeks.

@Paul Bowers

Thank you for the input. Yes, no insulation - more than likely running 24/7 like you said for that reason.  I might explore those options you mentioned, bc I in no way expected to pay $900+ a month just on utilities alone!

Hello all,

I’ve been involved in my first two flips the last few months. I just received my utility bill for one of my properties, and it was $928. The house is around 1800 sq ft, still down to the studs. The only thing other than the usual tools that are using power right now is the furnace. I was shocked at the bill, and the utility company said they suspect the furnace has been run very hot and often to create this kind of number. I am doing this remotely (so yes, two no-no’s for a first time flipper - doing two at a time, doing both remotely - it’s been quite the learning experience).  Can someone tell me if this is to be expected during a rehab once winter hits, or am I right to be a bit shocked at this number?

$7000 for a rental property to add to your portfolio is quite a deal.  Are you self-managing or do you have a hired property management in place?  I think I got a bit mixed up earlier - did you say you are getting these houses in the Dayton market?  I was just recently up there for a conference for the first time and was trying to get a gauge on the area.  I was staying right next to University of Dayton I believe (or is it U of Ohio-Dayton?), and I can see how at least that area would be a great rental area with the student life.

@Kyle H.

Message sent, thanks!

@Kyle H.

Thanks for the clarity, exactly what I was asking.  More specifically, the lender costs is what I was wondering about.  That is one of the questions I will have for this contractor, as I am unsure if he would recognize those costs (or any other holding costs like insurance, utilities etc.) as pre-net profit.  As mentioned earlier, he typically works with rate and term private lenders that have their own cash to fund the whole thing, but he could always benefit from access to more cash.  Again, I would rather leverage and leave myself the ability of running multiple projects at once rather than tying up all my cash into one project at a time.  I’m curious to hear a bit more about how you’ve structured the agreement in terms of contractually/legally etc.  Do you mind if I direct message about the more detailed stuff?