All Forum Posts by: Alexus Bell

Hello, I am looking for recommendations for an eviction lawyer here in atlanta georgia. Thank you in advance. 

thank you. The property had $30,000 equity at the time of purchase and the property next door recently appraised at $400,000. I have a FHA loan on the property at $249,000.

I am looking for advice regarding a refi-cashout on a small multifamily I acquired Jan 2022. I've listened to podcast and read books but thats all the knowledge I have and it seems fairly easy. I am wondering what I may not be considering? I am also wondering what steps to take to decipher the best route for the refinance cash out? For instance, do I get an appraisal independently or go through the bank?  

I have waited the one year seasoning period. I house hacked in one unit and rented the others. I kept all the rent collected and deposits in a business account but I did pay the mortgage out of my personal account up until last month. I still have a 9 to 5 , therefore with rents from the multi and I do own two other rentals (SF), I expect to qualify for the new loan amount. I do know closing costs are involved but would love more insight or advice. I would like to use as much cash as I can to go buy the next property, that is the goal. I am thankful and appreciate your advice in advance.

Hello All, 

I thank you in advance for any and all of your suggestions/advice. 

I am a newer investor with 4 doors and I want to set myself up to purchase more properties. I made great decisions during the low interest rate time during covid. I have two properties both at a 3% interest and bring in great cash flow. I am wanting to pull a HELOC on both or one to get into a few more properties.

The SFH has over $100,000 in equity and the Condo has $60,000 in equity. I understand the con of the HELOC cutting into my cash flow because it will be a new bill on the property. I would be very clear on my criteria for the purchase of the next properties. cash flow with potential equity growth. What else am I not considering or simply unaware of with this current economy? I am looking for suggestions on banks for these HELOCs as well. I welcome any and all advice.

Quote from @Drew Sygit:

if you have to do repairs, why not look into an FHA 203k?

 I am unfamiliar with that, i will look into it. 

Quote from @Chris Stonestreet:

I don't think I have a lot of additional information to add. But I would agree with many that you should certainly account for vacancy, because at some point you will have a turnover and it will take time to get the house prepped and/or repaired for the next tenant. I use 5% vacancy and I am in south metro Atlanta. Probably a little conservative but better to err on that side. I would also suggest at least a combined 15% for maintenance and capex, especially for an older property, maybe closer to 20%. If at some point your maintenance and capex reserve budget gets excessive, you could also take some of that as profit.

Last thought, is the rate buy down a 2/1 buydown? Meaning in 2 years it would be increase 2%? If so, you should use that interest rate in your calculations, if not that's amazing!

All that to say, looks like a great property and I am very bullish on Atlanta so it looks like a winner to me!

 First, thank you that was helpful and I have some follow up. I should have accounted for vacancy, maintenance ,etc.I intend to not touch any of the cashflow for a while. I am currently stable enough to do that but thank you for suggested percentages , they are more specific to the area.

Regarding your last point and I welcome thoughts here as well. the property currently already has equity in it and a decent amount. It needs a bit of work and I am rehabbing it and then refinancing. Currently, I have two contractor estimates that exceed my equity in the home by a couple thousand. I am wondering should I plan my rehab budget around the amount of equity currently in the home with no upgrades? I am working with the construct that it will certainly appraise above current value, enough to cover the rehab and a small profit. 

thank you very much for your conclusion!

Quote from @Alexus Bell:

Quote from @Joseph Hamer:

@Alexus Bell general rule of thumb is 8% for maintenance, 8% for vacancy, and 8% for CapEx. Of course this depends on your home and area. Also, where are you getting a 5.75% fixed rate on a 30 year mortgage? Are you house hacking?

Thank you for that rule of thumb. Yes it is an FHA.

Quote from @Joseph Hamer:

@Alexus Bell general rule of thumb is 8% for maintenance, 8% for vacancy, and 8% for CapEx. Of course this depends on your home and area. Also, where are you getting a 5.75% fixed rate on a 30 year mortgage? Are you house hacking?

Quote from @Alex Larcheveque:

There are great comments in this thread.

Even with the corrections of adding vacancy percentages, increasing your CAPEX budget, and assuming a higher interest rate, this property seems like it can cash flow decently.

How's the neighborhood? Do you think this property can appreciate?

The area is 15 minutes from the airport and 12 minutes into city. The property already has close to $30,000 in equity. The property to the right has been rehabbed but years ago and in front of the property is a well kept large parking lot to a church. I am hoping it will be a great short term. I’m trying to keep my rehab at $30,000 because my place will be the first to appraise in this market after a rehab. I feel it’s a little risk there but I took a long time picking this area. I plan to hold and rent for a long time so I just need the refinance to cover the rehab. Even if I took section 8 the property will cash flow. 

Quote from @Galen Ikonomov:

Seller credit cannot go towards downpayment. How new are the roof, HVAC, Electrical that you only budgeted 5% for these? You need to add another 5% towards vacancy and optional 8% from Property Management if you want to be conservative. Is that monthly payment you have got there taking into consideration the PMI you are going to have with the FHA loan?

I'm going to manage the property myself. HVAC and electrical are updated the roof is 20 yrs old. I picked a roofer already to do replacement plus gutters at $9,000. The mortgage is with PMI on FHA.