All Forum Posts by: Mike Lynch

I am trying to get a HELOC. Our home was appraised several days ago at $515,000, but Truist Bank ( Formerly BB&T ) counter offered my offer of 80% of the homes value and only wants to give us $255,000. ....... What should we do? ...... Thanks!

Thanks Guys for your comments and feedback.... I really appreciate it.

Thanks Everyone..... I really appreciate your help and comments.... It gives me a lot to think about. :)

Hi,

I was told by half of the people on investing websites to sell my property, here in Shallotte, NC, but it is pretty hard to find new stuff here as a $40,000 singlewide with land is now selling for $180,000. Our home / property is vacant but going up in value. I found out that I can get a cash out refinance on it of about $190,000. With this money I can finish the rehab and put a doublewide on my parcel right beside of it. I would have two rentals, side by side. My new cash out mortgage would be $1600.00 per month. I would get $1700.00 per month for the brick home and maybe $1500.00 per month for the doublewide. I would get around $1200.00 per month cash flow for the two properties, according to my calculations, give or take. Taxes and Insurance for the brick home are included in the new mortgage, but not for the double wide.

Many people tell me that I am nuts for trying to become a long term landlord. "It is nothing but a huge headache", They say.

Since it would be easy to sell the home, but hard to buy a flipper at below market value and flip it, I am still stuck as to what to do with it.

How much do you hate to be a landlord? ..... What other options would you do?

If I search for the most evil, meanest eviction attorney in the state and use their paperwork and rental agreements, would this help me at all?

One of the property management companies here has in their rental agreement that they must do a pest / maintenance inspection of the property every 90 days so they can check for water leaks, pests, drugs, cats, dogs, change HVAC filters, check for extra people living in the home, etc. ..... It seems like a pretty smart idea. 

The home in question is worth about $300,000. If we sell now we do not have to pay $26,000 capital gains tax. If we wait until the end of the year will will lose it.

Hi,

I'm from North Carolina trying to choose a bank for cash out refinance. Any help would be great.

I can't get a HELOC since it is not my primary residence, I don't think?

Thanks!

Oh, I forgot ,,,,,, If we rent and do not sell, we will lose $25,000 capital gains tax. We do not have to pay capital gains if we sell within the next few months, but after that our 2 years will be up. ( Living in the home 2 of the last 5 years )

Hi,

I did a rental property analysis today after you all answered a lot of my questions over the past 2 weeks.  It looks like if I charge $1300.00 per month rent, I will have a Net Operating Income of $11,626.80,,, Debt Service of $5,270.13 ,,, Cash on Cash Return of 16.08% and Cap Rate of 10.87%... I am pretty sure that I can get $1300.00 per month for it, but maybe more?

Now, If I put a renter in the home, will a bank do a cash out refinance? Right now I have about $200,000 of equity in the home ..... My bank here in NC will not give me a HELOC, since this is not my primary residence. ..... Do you know of a bank that would give me a HELOC, if I am renting it out and do not live there. ...... I want my cake and eat it to...... I want to pull the equity out in order to invest in other properties, and have a renter in place there as well.

Is a "Cash Out Refinance" and HELOC basically the same thing? .... If not, how does it differ?

Thanks for your help! :)

Thanks Everyone!

I could put a doublewide on the parcel beside of the house. There is a .5 acre lot. Would it make sense to do a cash out refinance on the home, fix it up, and maybe buy a repo or foreclosed doublewide? .... We could double down on the monthly mortgage payments. We would then have two rentals sitting side by side. One would bring in around $1500.00 per month and the other would bring in around $ 1000.00 per month.

I can't take out a HELOC since it is not my primary residence, but maybe a cash out refinance?

This way I used the equity from the brick ranch 3 / 2, fixed it up, and purchased an additional home. Since rates are going up, is a cash out refi okay right now if we double down on monthly payments?

 Thank You for your reply. I appreciate it. :)

Thanks for your reply! :)

In order to make the home rent worthy, we would need to repair these items soon.

New windows - $12,000
New Septic Lines - $ 5,000
New HVAC and Ducts Soon - $8,000
Trim some overhanging trees - $4,000
Replace Floor In Sun Room - $6,500

Total = $35,000

I am sure that we can get no more than $1,500 per month in rent as the home is pretty dated looking. It has the same layout as it did in 1978, but new paint, new roof, plumbing fixtures, and appliances. Pay Off Mortgage is $39,000.

After doing the 4 square method I come up with Cash on Cash return on investment at 4.5%..... We will have to pay off the $35,000 rehab costs and $39,000 mortgage = $74,000. ....... Unless I am missing something, it does not look good at all. So, Cash Flow each month would be around $300.00, but we need to pay off $74,000. ....... What would you do?