Help with BRRR! Is it too late?

Question

I bought a $120k house to flip in my LLC name on the best street in town. Pumped about $65k into it so now have a roughly $185k basis in it. Only $100k of it is on a 15 year commercial note.

Rather than flipping I think I’d rather keep it and rent it. Can I still get a 30 year note with my current financing situation?

Have I set myself up to get killed on closing costs now?

The house is now worth $230k. Can I buy it in my personal name for $230k from my LLC and use the equity as my 20% down payment?

I’m new to BRRR. Any tips or advice would be great.

Dan Gamache · Answer

@Brad Moore you can get a 30 year loan with private lender with the property in LLC. Can go to 75LTV of the new appraised value. I'll send you PM.

Jaron Walling · Answer

That's massive cash-flow. If you ran the numbers and factored in expenses it's a no brainer. Good luck on the deal. I'd buy/hold all day long at $400 per month.

Jaron Walling · Answer

The bank is only going to loan on $172,500 (75%)-$184,000 (80%) LTV. It looks like some money will be left in the property unless you ReFi another way.

What does the cash-flow look like at $1800 per month? In my opinion that's all that matters. I wouldn't want to "prop" up a property because it doesn't cover expenses, tenant damages, etc. You could quit claim deed it to your name allowing you to utilize conventional financing. There may be some risk doing that. I would consult with the Lawyer first.

Brad Moore · Answer

@Jaron Walling Cash flow should be $400-$450 a month at $1800 per month assuming a 30 year loan at around $180k. I’m fine leaving some money in it. Not looking to leave $80k in it or anything.

Benson Gee · Answer

Would love 400 cashflow! Sounds good to me! but I'm just a noobie. Best of luck!

Cory Lucas · Answer

@Brad Moore I’d really like to think you could get conventional financing for at least 80% LTV. Looks like you’re getting phenomenal advice on here, best of luck with your endeavor, sounds like you’ve got some good equity and options there

Brad Moore · Answer

@Derrick Burtle Forgot to answer rent question. Should rent for anywhere from $1750 to $2000. My gut tells me $1800 is fair though.

Brad Moore · Answer

@Derrick Burtle I’ve got a lawyer who can move the deed to my personal name for $50. So that’s an option if it helps

Brad Moore · Answer

@Derrick Burtle I’ve got a lawyer who can move the deed to my personal name for $50. So that’s an option if it helps

Help with BRRR! Is it too late?

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