All Forum Posts by: Timothy Allen

Thanks for the response! I'm going to rehab and get an appraisal to see. I'm going to be cash flowing more than enough to pay all expenses plus HELOC so I'm not overly worried. I appreciate the feedback

I have a question here for the BP community.

I'm currently closing on my first two investment properties both duplexes. One needs extensive rehab (Roof, heating systems, rebuilt porches, siding, bathroom remodels), the other is mostly turn key but the vacant unit will get an updated turn over.

Rents on both are way under market value and PM is very confident on getting much more rent out of them.

I am using portfolio loans on both with my original plan on doing somewhat of a Brrrr strategy on the one that needs the work. I'm using HELOC money from my primary for downpayments and for some of the rehab work.

My problem is that the comparable sales in my market that came up on my appraisal dont quite justify a decent cashout refi to pay back my HELOC.

Is there a way once both properties are stabilized, rehabbed with increased rents that I could cash out refi as a package deal into a commercial loan where they use the income to value the property more so then the comparable sales? If not is there another type of loan that would work with what I'm trying to accomplish? say DSCR for example?

Thanks
 

I took a HELOC out now on my primary while my value was high. I'm using it as a downpayment on multifamilys now. I think its a great idea to lock in your HELOC now while property values are high.

I think I should reached out here earlier. I am going to embrace my learning curve!!

Thanks for everyone's input. Much appreciated 

 Similar fee structure. 

As far as repairs that was one thing I'd be able to experience while working with both. Thanks for the response  

 Thanks for the response. I wanted full transparency and not to have to hide anything. You do bring up valid points however. 

 Thank you and yes I will reach out. I could as you stated just be over thinking it. Thanks

Hello BP, I'm a new investor here looking for your advice.

Ive just recently started the purchase process on not just one but two of my first investment properties! Two duplexes.

The properties are 1 1/2 hours from me so property management is a must for me. I've done a lot of homework and have called and interviewed about half a dozen company's. Of those, two of them really stuck out and made me feel confident. My idea and strategy is to use both of them one for each property. This will give me the chance to vet them and compare to see how they each work as I'm still learning the process myself. They are both agents as well and I see this as an opportunity to expand in the the future by opening my network.

Here's where my hang up is. I have been completely open and honest with both of them that this is my strategy and plan to grow with both companys as long as everything goes well. Since communicating this one company had slowed their communications with me and I get the feeling that they didn't like that idea? Im not under contract yet with either of them as I still have about a month until closing.

Do you think they take offence to this? Am I too new to use this strategy and maybe should just stick to one for now?

Thanks

Hello BP, I'm a new investor here looking for your advice.

Ive just recently started the purchase process on not just one but two of my first investment properties! Two duplexes. 

The properties are 1 1/2 hours from me so property management is a must for me. I've done a lot of homework and have called and interviewed about half a dozen company's. Of  those, two of them really stuck out and made me feel confident. My idea and strategy is to use both of them one for each property. This will give me the chance to vet them and compare to see how they each work as I'm still learning the process myself. They are both agents as well and I see this as an opportunity to expand in the the future by opening my network. 

Here's where my hang up is. I have been completely open and honest with both of them that this is my strategy and plan to grow with both companys as long as everything goes well. Since communicating this one company had slowed their communications with me and I get the feeling that they didn't like that idea?  Im not under contract yet with either of them as I still have about a month until closing.

Do you think they take offence to this? Am I too new to use this strategy and maybe should just stick to one for now?

Thanks