All Forum Posts by: Annchen Knodt

Hi @Peg Wilkinson, where is the property located?  You'll probably increase your chance of getting good advice if you mention that, as for the most part your best experiences are going to be with local lenders.  

I work with a credit union in NC that can close a delayed financing in ~30 days, and they have lots of options for buying down your rates with points so you can optimize on what works for you.  On my most recent refi on a rental I'm paying ~1 point for a rate of 3.625% for a total of ~$3200 in fees on a $92k property.  They did not care about what it's rented for - I've heard that generally that won't happened until it's been "seasoned" with the rental income for 2 years.  I'm under the impression that these terms are decent but could be there's better out there.

Note also that in addition to the 75% of ARV you are also limited to the total amount cash you put in up front, including closing costs and any rehab funds you put on the closing statement. They will cap you at whichever of those two amounts is LOWER. (where as after 6 months you are only limited to the 75% of ARV)

Hi @Russel Kahmke, welcome to BP!  The best place is start is definitely education + getting to know other people in the business and learning from them, so it sounds like you're on the right track!  Keep reading and listening to podcasts, and set up keyword alerts on here for raleigh and durham so that you can see what locals are talking about and get notified when there's a local meetup - that's a great way to meet people to learn from!  You could also check out TREIA - they have a monthly meeting specific for new investors with lots of great info and encouragement for folks just getting started (not exactly sure what the status is with COVID but they've had some virtual meetings).  Good luck!

Hi @Adrian Santos - I hope you're able to find good help!  Just wanted to drop a note to make sure that the person you hire does appropriate subfloor assessment / prep - LVP can be very sensitive to imperfections in the subfloor, and from what I've heard, not all installers will account for that.

Hi @Dillon Campbell, thanks for explaining the mail meter - seems like an interesting idea.  I'd looked into some ways to save on postage with a DIY mail campaign, and bookmarked this page as a source of ideas.  Seems like you are already aware of the printing option, but might want to also check out the precanceled stamp bits.  Of course these aren't necessarily time savers though.  I also bookmarked this page with thorough info on USPS bulk mail… it's fairly complicated (need a permit under certain circumstances, must meet certain criteria, etc) but perhaps worth looking into if you are very interested in saving money on a DIY mail campaign.  Just thought I'd drop those notes in case they're helpful - hopefully someone chimes in re the mail meter!

Hi @Dillon Campbell - I'm not familiar with mail meters (maybe it's just me?), could you elaborate?  I'm intrigued!

Hi @Clark Michael,  I nearly completed a delayed financing application with Coastal Credit Union, but it ended up falling through since I had purchased the house with cash out of my partnership's bank account and was applying for the loan in my own name (to allow me to do the DF on a conventional loan with the more favorable rates. I'm not even sure if/how it would work to do DF in some sort of entity or partnership structure… I think we could have done it if I had added my partners to the loan as co-borrowers, but we opted to wait the rest of the 6mo out instead, rather than going through the whole process of having them vetted as well)  Lesson learned about the proper way to source funds (and be able to document!) for getting DF.  

But long story short, I'd recommend checking out Coastal Credit Union.  I think it's pretty easy for most NC residents to become a member (I just had to pay <$20 to join some sort of club or something…), and I have had great experiences with them on 2 cash-out refis now.  I also like that they have lots of options for buying down your rate for only small points charges up front.

I'll second the recommendation to get some advice on properly leveling the floor, and add that 4 mil is a super thin wear layer.  I've heard lots of folks say 6mil is too thin.  I installed 5mm COREtec floating LVP (w/ 20mil wear layer) over my 1985 wooden subfloor that seemed to be mostly level but boy can you still feel bumps all over the place.  We are actually taking it back up and more carefully leveling the floors this weekend.

@Colleen F. I'd be curious what situations you'd recommend the .25" plywood underlayment for?

@JD Martin I'm trying to figure out how to prep my subfloor for an LVP install and came across your post here.  I'm curious what you mean by "deflection" in the floor.  I've got some peaks and valleys in my wooden subfloor and one area with a bit of a dramatic slope (1" over 4') and I'm leaning towards using a self-leveling type compound to fix the problem spots (largely because I had 3 contractors advise against doing any structural work since it looks ok in that regard)

Hi @Matthew Metros, most often when people talk about "delayed financing" they are referring to the "delayed financing exception" in the Fannie Mae guidelines, allowing someone who bought in cash to pull out the LOWER of 75% of the appraised value of the property OR the total that was spent up front, before the 6 month seasoning period that's required for a traditional cash-out refi. Bc the cash-out amount is also limited to the cash put in upfront, BRRR investors will include rehab costs on the closing statement to increase the amount they can get back out. I think it changes to 70% ARV for multifamilies but I'm not sure what's available once you get into the 5+ commercial range. From what I've heard, in those situations it's all about having a good relationship with a lender who will work with you to get you the terms you need.

But as @Rick Martin said, hopefully a loan specialist will comment!

@Kyle Roberts, I'll second what @Sean H. said - for cashflow people are going to the secondary markets in the area like Burlington, Mebane, Sanford, Fayetteville, Rocky Mount etc.  Definitely check out the Bigger Pockets monthly meetup (make sure you have keyword alerts set up for Raleigh/Durham and you'll get a notification) - it's a great way to meet local investors and learn about strategies / areas that people are having success in!