All Forum Posts by: Anthony Freeman

@Portia Bates To answer all your questions:

It depends on the timeframe. If you have a lender already lined up who you want to work with then you can probably have the refi done in little as two months. It also depends on whether or not you have to wait the seasoning period which could be 6-12 months.

But the most important thing you must account for is the order of the BRRRR process buy, rehab, RENT, Refinance, repeat. You want the property generating income before you take on debt. It would not be fun to have a mortgage payment coming in and no income, not to mention the holding cost (gas, electric, taxes, water, etc.)

The quickest way to move the process along is to start working with your lender ASAP. Providing all the necessary documents beforehand helps a lot! The refinance process can take as long as you and your lender make it take. I will be refinancing a property in a week but I started uploading documents months ago to get it out of the way. I’m waiting the 6 month seasoning period. There is also the delayed financing program that @Alexander Felice preaches about. If you put your rehab cost on the closing statement (make sure you listen to podcast 301 and read his article on exactly how to do it) you could get your money back even sooner with no seasoning period. On average, the refi period usually take 30-45 days (as told to me by my lender).

As to the hard money question, that’s up to you.

Hi everyone! I'm looking to re-fi my duplex out of an FHA so that we can re-use it on another small multifamily here in Cincinnati.

I've been told by a few lenders that since it's a duplex, I need 85% LTV to re-fi, which we don't quite have yet (closer to 11-12% LTV). Are there any lenders that can help us re-fi into a conventional product with less than 85% LTV?

Thanks again!

From my experience, I have learned repainting a building can immediately upgrade the exterior of a building. Also addressing exterior elements such as as siding, windows, doors and landscaping can all improve the curb appeal of a building. Are there any other exterior additions that can draw attention to tenants and improve the value of the property?

Is there a reason for aiming for a higher LTV?

While 85% is doable, it's costly. If you want to take cash out, consider lowering it to 80% for better financial management. Going even lower to 75% or less might be more advantageous.

@Anthony Freeman I used SoFi to refi / cash out an investment property at 80% LTV, and they said they could go slightly higher but it would impact the rate.

It was a full doc conventional loan, FICO > 760

Most DSCR loans supplied to the entity (LLC) that owns the investment rental property are refinanced at up to 75% for cash out, and maybe up to 80% for rate & term (paying off the existing mortgage and pulling no cash out). Typically need to have 680-700+ mid-FICO for the additional guarantor(s)(the LLC members). The higher the score, the higher the leverage options, but also the higher the leverage, the higher the rate.

 OK. ..you can do 85%, but it's pretty expensive.If you're pulling cash out, back 5% off of the max.  If you can stick with 75% or less, you'll be better off.

 Anthony, 

That is what I'm looking to do as well! I'm going to house hack the first property and I'm in the process of making connections and analyzing deals. 

Is your goal cash flow over the long run? If it is, I would recommend to consider all expenses when doing your numbers. Vacancy, CapEx, property management, current property taxes and tax increases, and more.

@Anthony Freeman If you're able to get the multi unit with good margins there shouldn't be a problem cashing out. Same seasoning will apply, 3-6+ months to use the new ARV. Most investors refi/cash out every few years depending on appreciation.

How many units are you looking at?