All Forum Posts by: Thomas Ebenhoch

@Brent Coombs, what would you use the 25,000 for? I'm looking for some ideas on the best way to utilize the money.

Hello all, I own a three unit building that I purchased in 2016 with a 203k loan for $157,000 total with renovations included. I've done a good amount of renovations: siding/soffits/fascia, gutters, replaced all concrete work, repaired and refinished porch, all baths and kitchens, refinished hardwood floors, full paint job, landscaping ,etc. I live in one unit and rent the other two, a 3br/1.5 ba for $1200 and a 1br/1ba for $700. The unit I live in is a 2br/1ba that would rent for $950-1000. So, $2950/mo and $35,400/yr total rent roll fully rented. I'm in the process of taking out a HELOC on the property to fund some other investments and the appraisal came back lower than I expected, $216k, which would only allow me a $25k LOC. There are multiple unit buildings recently sold and on the market for $250+. I was hoping for around 50k and I requested an appraisal review. Am I wrong in thinking that the appraisal is way low based on the income of the property? I used my local credit union, does anyone have a good recommendation for a lendor? I would appreciate any advice regarding the Heloc/appraisal process and hope that this can start a discussion.

That's interesting that you do everything in house. I suppose that's the end goal. I have friends who are plumbers, electricians, GC, etc. and I was thinking I could contract out repairs as needed. I would be beginning with Multi family homes.

What kind of properties are you managing? I imagine the real money is in managing large apartment complexes and places like corporate office parks.

@Brandon Ingegneri Thanks for the advice. I looked at your profile, I see that you also own a property mgmt company. I have been kicking around the idea of creating a management company to oversee mine and my parent's rentals, and branch out to other clients. Were you involved in starting the company? Feel free to pm me if you dont want this public.

@Brandon Ingegneri Your scenario is my general plan for the next few years. So you are saying to cash out refi the 2nd property to pay back the 1st property's HELOC? Could you explain how you could scale from there?

I own a 3 unit multi family home in Upstate NY, bought in 2016 with a FHA 203k loan. Purchase price was $127K, renovations from the 203k brought the loan total up to $154K. The house was appraised by the county for $160K before my purchase.

The loan mainly covered exterior improvements new siding, new concrete pathways, gutters, etc. I also have renovated each unit and the building is fully occupied, with me living in one of the units.

The unit rent total with me living in one of the units is $1850, it increases to $2700 if I move out.

I really have no idea what the house is worth now, there are not too many comps in the area. But if I had to guess somewhere in the 200-230K range.

My plan is to buy another multi family like this, so I am looking for any advice on refinancing, HELOC loans, cash out refi.

I'm a big fan of the BRRRR idea, but I am just unsure about the refinancing portion. Any help or advice for a guy just starting out?

Thank you for your responses. I will talk to my attorney.

I am in the process of buying a triplex that I plan to owner occupy. The house has 2 units rented with the third vacant.

The house is being sold by a family trust and I was told by the selling agent that the tenants have lived in the property for 15+ years. I was also told that the tenants do not have lease agreements in place, they have a verbal month-to-month agreement with the previous owners. 

The current rents are also very low, 600 for a 3BR and 375 for a 2BR. Market rents for my area are in the 900-950 (3BR) and 700-800 (2Br). I am planning on raising the rents to be comparable to other properties in the area.

Has anyone experienced an issue like this before?

Comps are selling for 120K-200K, depending on condition of course. 

@Kyle J. Thank you for your reply. The house is listed today for $135K, which was a price drop from $199K in October 2015, which was yet another price drop from the original price of $250K in August 2015. These large price drops make me wary that there may be something significantly wrong with the property but I will not see the interior until Tuesday.

The seller reports that 2 of the units have been rented by the same tenants for 15 years and that the other unit is currently being rehabbed. The rents reported are also very low compared to comparable rents in my area.