All Forum Posts by: AJ Exner

@Maria Pereyra, There's quite a bit of difference in taxation and land lord rights between Kansas and MO even though the KC metro contains both.  Know what you're getting into between locations that seem the same but are in different states with very different politics and policies.

The great thing about your 1031 is that you can go anywhere.  Another great thing about a 1031 is that you don't necessarily have to choose one or the other.  It's perfectly fine to sell one property and use the proceeds as down payments on multiple properties.  As long a you purchase at least as much as you sell and use all of the proceeds in your purchase or purchases you'll defer all tax.

I have 2 properties, owned outright (no debt), by my LLC, valued at about $75k each. I am trying to find a way to get money out of either or both. So far no one lends to LLC's and/or no one lends under $75k per property. Does anyone know what I can do here? TIA.

Are DSCR lenders able to loan in any state? Can I use a property that's an established rental to buy property in a different state. If I only

need 50% LTV will that help the interest rate very much? Thanks for any advice.

What's the best way to structure a deal if I were only bringing sweat equity into the deal? I have an open offer to kick in some sweat equity for a larger multi-family deal, should I find something that works. 

How and when do I leverage that equity - is that only at time of sale? I'm not sure if equity is the best way to go about this if I can't capitalize on it for at least 5-years. 

Hi, I am looking for anyone that lends in Texas that could combine my 5 properties into one loan so that I could pull at least 110k equity out.  Trying to find a lender that does 80% of the market value or even 75% if can put it on a 30 year note.  Appraisals 550-560k.  Loan totals I owe = $296,000.  Please let me know.  Don't want high fees or tons of closing costs.  Maybe could roll closing costs into the loan.  Goal is to pay off debt and pull some cash out for another rental.  

 Thanks for your input AJ. It's good to know the limitations on refinancing. It sounds like what you're saying is that I might not be able to get an appraisal and refinance for 6 months after purchase, is that correct? And then after we do that refinance, you can't do that again for another couple of years?

The reason that I'm looking at negative cashflow is just because of the mortgage amount to get our full amount out of it. If we buy it for $161,000 cash, put $20k into it and then refinance at a valuation of around, say $250k, we could pull out 75% of the ARV and get $187,000, which would put us just slightly over what we put into it. But with a 30 year mortgage of $187,000 at 7.5%, plus insurance and Cap Ex, that will put us above our $1,700/month rent. Does that make sense?

 I'm so grateful for guys like you that are way smarter than me with this information! I didn't know that was an option. But really, the timing isn't as much the issue as it is the negative cashflow if we were to refinance and pull out the amount that we have in the house. But it's really helpful to know that on deals in the future! 

If I understand correctly, what you're saying is that if I buy a house cash, I can take the purchase price plus expenses on renovation and use that to get financing more quickly? I also didn't realize that you typically have to wait 6 months after purchasing a BRRRR before you can get a new appraisal/refinance!

Thanks again!