All Forum Posts by: Travis Bobo

So.... we are finally buying our first rental property. I refinanced my personal home and used the equity to pay cash for the property. My question is...how do I document the mortgage expense since it is technically a part of my personal residence mortgage?  I still want the be able to show this additional payment that I now have as an expense on the rental property.  Have I messed up?

To further complicate it, I went from from a 30yr to a 15yr in the process, so it not just as simple as taking the difference in the old mortgage vs the new one to calculate the costs of the rental property monthly.

Just getting back in the game after my first flip 12 years ago.

Geoffery,

$400 taxes would be really low for a home in Spartanburg County.  Especially at 6% instead of the normal 4% .  You may want to check that just to be sure. 

Just as an example, I am currently looking at a duplex that is valued at $124k and the taxes are $2600 and its outside the City limits.  

Google "Upstate CREIA".  There is a monthly meeting. This month's meeting was thus past Monday

For those of you using the BRRRR method, how are you getting refinanced for less than $50k?

I have looked at buying several properties in the $40-50k range for cash and then pay cash for the rehab.  They would then appraise for $70-80k.  The problem I am having is how do I get my cash back out of the property?  No one seems to want to do a 30yr mortgage for less than $50k.  A $50k mortgage then kills my cash flow.  I can get a commercial loan for 15yr, but this also kills my cash flow plus it's an adjustable rate.  Where could I get a 30yr mortgage for $30-35k on a property that appraises for $70k+?

I've talked to a broker and 2 community banks.

I'm sure that I am missing something.

Thanks

Mike,

Would you send me info on the SFR and the duplexes?

Thanks

Hey Mike,

I would love to here about any properties that you have for sale in the Greenville/Spartanburg area.

Hey BP,

My wife and I are still looking for our first deal. We own a piece of raw land free and clear that should be worth $70-75k. It is 21.5 acres in a very rural community. Selling it is not an option. (family) Is there a way that we can leverage that equity? Is there a such thing an equity line on raw land? We were just brainstorming about ways to be able to do a cash purchase on an investment property and maybe get a better deal by being able to close quickly. We could then apply the BRRRR method. We already have an equity line on our current home.

Any good ideas?

Thanks for all of the replys.   I actually talked to a mortgage broker this morning to get all if the details. I'm finding out fairly quickly that there is 100% right answer to any real estate question.  

The broker was very helpful.

Thanks again

I was referring to the banks tolerance for repairs.  So as long as the appraiser says that the home is worth what i am asking them for, then they are ok? I would then need to pay for repairs out of pocket or do a desperate loan for repairs, correct?