All Forum Posts by: Thomas Solorio

Hello BP Community,

I am in desperate need of homeowners insurance for a home that I am purchasing in Desert Hot Springs, CA. I plan to do minor renovations on the inside (paint, replace some carpet with vinyl, add a pool & hot tub, furnish, and then put the home up for rent on Airbnb as a pure short term vacation rental (with max 7 days per stay). I am in escrow now and I'm having trouble finding insurance.

Additionally, I have a triplex apartment complex in the same city that I need insurance on as well. I have had Statefarm Insurance with this property since 2021. But, Statefarm is dropping me as part of their grand California exit plan of dropping 72,000 properties in California this year. This Triplex is mixed use where one unit is a short-term vacation rental, and two units are long-term rentals. It has been fully renovated in 2023.

I appreciate any advice, info, or insurance assistance anyone can provide!

Thanks Dave! That is great info and exactly what I need to do - 1031 two cheaper homes into one very expensive duplex. One issue I am forecasting is being able to sell both homes at the same time. Have you ever done a deal like this? Any advice on closing them together?

I am interested in using a 1031 Exchange to go from 2 non-owner occupied single family homes to one owner occupied duplex, where I live in 50% and rent out 50%. I’m also thinking to use my triplex instead of the 2 sfr’s but not sure if I want to go that route just yet. anyone know of any new rules regarding this in California? 

Quote from @Kevin Romines:

If you only need $200K over and above the existing mortgages and closing costs, you can get that much with the first 2 properties that you listed. You can get up to 75% cash out on a Fannie / Freddie loan as a rental. Unless there is a reason to refinance any of the others, depending on the rates of the other loans,, you may or may not want to refinance?

I hope this helps.

thanks Kevin. I got denied by gauranteed rate. it's a tough one for me. if i liquidate one home i pay off the credit cards but I pay capital gains and fees. if i refinance all properties I'll go from rates of 3.5% and 4.5% to much much higher but then I'll keep the homes. I owe about $200,000 on the credit cards under my name and $100,000 under my wife's. I'm more concerned to deal with my debt right now as it's coming due first this december

Quote from @Greg Scott:

For best terms, I would keep them in your name and start working cash-out refis now into Fannie Mae loans.  Find an investor-friendly mortgage broker because most street-corner banks won't know how to handle this.

For quickest transaction, I would go to a local bank that does these types of loans and ask for a Portfolio loan. They can roll all the properties into one loan (but the properties could still be sold off separately). Banks are often very happy to have these properties in an LLC so if you wanted to do that, now is the time.

The one loan that may cause you some headache is the one you share with your brother.  If you go the Fannie Mae route, no problem, but you'll both have to sign on the loan.  If you go the Portfolio Loan, you probably won't be able to put it in with all the others because the ownership is different.

 Thanks Greg. the portfolio loan route sounds like a good option. appreciate the advice. I got discouraged when guaranteed rate couldn't do the loan so I've thought about just liquidating one home to solve the problem. but that comes with about $40,000 in capital gains plus commission and fees. going to try and shop around to keep all the homes under my name

thanks Andrew! I really appreciate the advice! with the roadblocks I had with qualifying I was actually thinking about just liquidating one house and selling it off instead. I'd be stuck with about $40,000 in capital gains plus commissions and fees though. do you do loans in california?

hello,
I need to refinance 2 homes and one triplex. I also have another single family home that I need to refinance but I’m in a 50-50 partnership with my brother as a successful vacation rental. All my investment homes are in desert hot springs, ca and I currently rent where I live in Avalon, CA. The triplex and airbnb sfr were bought and renovated in 2021 using my own personal credit cardS. I need to pay off my credit cards by December 2022.

I’ve had issues qualifying with the airbnb because the income is not on our taxes yet as we just went live with it in April of this year. But it’s extremely successful expecting to gross min $120,000 + from mid April 15 to December 2022. The other 2 homes are fully renovated and rented and the triplex is partially renovated and fully rented as long term rentals.

Numbers
sfr 1- rented, owe $168,000. Likely appraisal of $400,000

Sfr 2 - rented, owe $156,000. Likely appraisal of $400,000

triplex - fully rented, owe $250,000. Likely appraisal around $550,000- $600,000

Sfr 3 (airbnb home). Owe $180,000. Likely appraisal $600,000. This is split 50-50 with my brother on title.

I need to refinance with all funds going directly to my credit cards. Minimum $200,000 needed.

I appreciate any information anyone has.

hello,
I need to refinance 2 homes and one triplex. I also have another single family home that I need to refinance but I’m in a 50-50 partnership with my brother as a successful vacation rental. All my investment homes are in desert hot springs, ca and I currently rent where I live in Avalon, CA. The triplex and airbnb sfr were bought and renovated in 2021 using my own personal credit cardS. I need to pay off my credit cards by December 2022.

I’ve had issues qualifying with the airbnb because the income is not on our taxes yet as we just went live with it in April of this year. But it’s extremely successful expecting to gross min $120,000 + from mid April 15 to December 2022. The other 2 homes are fully renovated and rented and the triplex is partially renovated and fully rented as long term rentals.

Numbers
sfr 1- rented, owe $168,000. Likely  appraisal of $400,000

Sfr 2 - rented, owe $156,000. Likely appraisal of $400,000

triplex - fully rented, owe $250,000. Likely appraisal around $550,000- $600,000

Sfr 3 (airbnb home). Owe $180,000. Likely appraisal $600,000. This is split 50-50 with my brother on title.

I need to refinance with all funds going directly to my credit cards.  Minimum $200,000 needed. 

I appreciate any information anyone has.