All Forum Posts by: Thomas Klein

Thanks for the reply. I am currently trying to refi all four properties to get the HELOC put back.

Investment Info:

Single-family residence buy & hold investment in Fort Lauderdale.

Purchase price: $215,000
Cash invested: $85,000

Property is within walking distances to downtown Fort Lauderdale. Property was full rehab to studs and concrete.

What made you interested in investing in this type of deal?

The location and the fact that the property is zoned for a duplex for future development.

How did you find this deal and how did you negotiate it?

I saw this property for sale five years ago and wanted it. Seller was not willing to negotiate. Five years later it happened.

How did you finance this deal?

I used two HELOCs from two of my other rentals.

How did you add value to the deal?

Complete rehab.

What was the outcome?

It’s rented and awaiting refinancing.

Lessons learned? Challenges?

A lot!!! Just ask!!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Shirley Klein Realtor 9544489088
Space Coast Credit Union

Hey everyone,

I am in need of a local lender in Fort Lauderdale. 

I would like to do a BRRRR, but my DTI is too high.

I do not have LLCs nor do I want to get one, to go commercial. 

All asset based lenders that I have contacted will not do any lending unless it's in a trust or LLC.

Has anyone had any local lender lend to them, off of their DSCR in their personal name?

Thank you kindly everyone. 

Hey everyone,

I have four single family homes in Fort Lauderdale. 

I bought property 4 using two Interest only HELOCs from two of my single family properties.

Property 1 had no mortgage. I have a $112,000 INT only HELOC. Property is valued at $180,000. Cash flow is $700 per month.

Property 2 has a first mortgage with a balance of $50,000 and $137,000 INT only HELOC. Property is valued at $300,000. Cash flow is $300 per month.

Property 3 has a first mortgage with a balance of $350,000. Property is valued at $430,000. Cash flow is $125 per month.

Since I used the HELOCs to purchase property 4, my total DTI is up to 72%.

I don’t have any issues with making all the payments, but it would be nice to pull the money back out to pay the HELOCs back and repeat this process, without selling property 4.

Any suggestions would be amazing!

Thanks to everyone in advance!!

I purchased a rental (single family) in Fort Lauderdale with 2 HELOCS. ($215,000)

The first HELOC was from a free and clear property for $112,000. That is an interest only at 3.75% (adjusted, in Feb it was 5.5%) of 70% LTV on a $160,000 appraised value.

The second HELOC was from another rental property for $137,000. That was an interest only at 3.75% (adjusted, in Feb it was 5.5%) of 70% LTV on a $282,000 appraised value. I have a current balance of $50,000 on the first mortgage.

The purchased property from the HELOC's is now in the process of being refinanced. I am only refinancing $280,000.

With the interest rate on the refinance coming in at 3.25% my question is... 

Would you pay back the HELOCs or would you do a cash out refi on the two properties and close out the HELOCs all together and go for 75% LTV cash out refinances?

Or would you pay back the HELOCS, keep the first property free and clear and keep the second property mortgage balance at $50,000 and continue on using the HELOCs?

Thank you kindly to everyone on here. Without all of you I would never have done what I did.

@Kevin Hunter

Thanks for your service to our country, too.

@Kevin Hunter thank you so much.

@Kyle Mailloux look into REIFAX. It is a great resource for finding information on just about any property. You can see about foreclosures, bank owned properties, short sales, pre-foreclosure, distressed property, properties with 30% + potential equity and much more. Then you can mail to the property owner directly without having to mail to an entire zip code to hopefully generate a lead. Just another tool for the tool box.

Investment Info:

Single-family residence buy & hold investment in Coral Springs.

Purchase price: $385,000
Cash invested: $30,000

4/2 single family home with a two car garage.

What made you interested in investing in this type of deal?

Location Location Location

How did you find this deal and how did you negotiate it?

I found this deal from farming that particular area. I had a search set up on Redfin to alert me about new homes for sale. I negotiated this based on the fact that it was on the market for six months. I went and looked at it when it first came on the market and said they are asking too much and happen to be looking again six months later and it was still on the market. I then made an offer based it still being on the market so long.

How did you finance this deal?

I used HSBC Bank and did a conventional loan.

How did you add value to the deal?

I updated all the plumbing fixtures and door knobs and hardware throughout the property. It had just been freshly painted and they even took up the carpet and installed new tile where the carpet used to be. This was not done when I saw the property six months prior. (maybe that is why it was on the market so long??)

What was the outcome?

I was able to move a tenant from my second buy and hold property into this property as the had another child.

Lessons learned? Challenges?

Find an area with great schools and target that area!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with my mom who is a Realtor in Broward County. Thanks Shirley Klein aka Mom!

Investment Info:

Single-family residence buy & hold investment in Margate.

Purchase price: $165,000
Cash invested: $15,000

This property is a 3/2 single family home with a one car garage.

What made you interested in investing in this type of deal?

I had my first property going for me and thought it was time to seek another one.

How did you find this deal and how did you negotiate it?

I was driving the neighborhood and happen to see it was for sale. I saw that it had what looked to be new roof flashing and thought the roof was relatively new. (It was not new lol) This deal was negotiated off of the previous buyers inspection report.

How did you finance this deal?

This property was financed with a credit union using a conventional loan.

How did you add value to the deal?

This property needed a deep deep cleaning as did my first property. I ended up taking up all the real oak wood floors that were damaged from an air condition condensation line leak and replaced the floors with all new tile throughout all the bedrooms, hallway, dining and living room. I was able to clean the wood kitchen cabinet doors to make them look great, again. Fresh paint on the inside and outside. Removed all the landscaping from the front of the house.

What was the outcome?

This house eventually rented for $1950.

Lessons learned? Challenges?

How to hire out specific trades for specific jobs around the house. I was trying to do everything and learn as I was going but was not as effective as just hiring someone to come and do it right the first time and save me 10 trips to Home Depot.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with my mom who is a Realtor in Broward County. Thanks Shirley Klein aka Mom!