All Forum Posts by: Asher Anthes

@Al Williamson, yes this is exactly my thought.  I've already had to replace several air conditioners, furnaces, hot water heaters and a roof, but I know several of my properties will need more big ticket items in the future and I want to make sure I'm prepared for it.  I'm always keeping at the minimum double the liquid reserves that the bank requires me so that I'm ready if a bunch of things happen in the same year.  

Do these estimates sound about right to you:

Roof 25-30 years

Air conditioner 15 years

Furnace 25 years

Hot Water heater 15 years

So, I have 4 rentals and I compiled my totals for the last 3 years and I had 1.9% average vacancy rate.  My maintenance costs (including cap x) totaled 8.6% of revenue.

I know my vacancy rate is a bit lower than average, do you think my maintenance and cap x is about in line?  I'm wondering if these are realistic numbers to project for the next properties I buy.   Is maintenance as a percentage of revenue the best way to estimate, or do you guys look at it a different way ($ per square foot per year, $ per property per year?).

And I've been able to achieve 2% vacancy mostly by hustling my butt off on turnover, but that also may be a little low for a long term estimate?

yeah, I've bought two off hubzu and usually the seller provides title insurance.  You can technically still back out of the deal within 48 hours without losing ernest money too.  Just go do you inspection the day after you win.   This saves you from having to look at every property beforehand

Hey guys, I currently own 5 properties all financed conventionally in my own name.  I'm looking to buy several more with cash, and then refinance using either fannie mae delayed financing or a 6 month seasoned cash out refi.  I have about $140k liquid of my own to work with, and my father has about $90k in addition that he would lend me me as a revolving line of credit for the purchases.

I have two questions: 

1. If I want to do fannie mae delayed financing after 1-2 months of purchase, can I use my fathers funds for the purchase or does it all have to come out of my bank account?  As far as I understand it, they will check my bank statements and make sure the money came out of solely my account or my HELOCs.  If I can't use his money for purchase, can I use it for repairs and cash reserves (as long as it's 2 month seasoned).

Seocond: I've heard there are conventional lenders allowing you to do 6 month seasoned cash out refi's where you can pull out more than the purchase price (75% LTV), even if you have more than 4 mortgages? Is this true? And are the old 4 and 10 max property rules starting to change?

Thanks guys for any input!!

Is it capped at 70% LTV, and I'm assuming you have to wait the 6 month seasoning period to do this? Right?

@Jerry Padilla and 

@Stephanie Medellin

Thanks so much!  This gives me some clarification, and I'm confiming with my lender now

 Hey stephanie, I have 5 financed properties and am going to buy the 6th with cash and do fannie mae delayed financing as soon as its renovated.  I just had a couple clarification questions:

I can only get 70% LTV out and it's capped at the purchase price, right? So, I can't get any repair money back out?

Do I need 6 months PITIA seasoned reserves (not counting the money I will be pulling out) for all properties before I do the refi?

And does to money have to be in my bank account for 2 month? Do un-tapped HELOCs count as liquid reserves, or do I need to pull the money out of the HELOC?

Thanks!

Sorry for all the questions

Is the interest on a personal line of credit tax deductible like a mortgage is?

yeah, I'm aware of hard money and I have a few potential sources of private money.  It just seems more risky and more expensive to me.

How do you structrure your private money deals?  I'm guessing you give them the first lien, and what are the rates like?  And do you hold them with private financing long term or refi conventional?

If I did either a hard money or private money deal, I would want to refinance conventional as soon as I could because I have good credit and room in my DTI.

So, I know about the home path renovation loan 10% down for investors.  Obviously this is limited to only certain properties.  Are there other conventional financing options for financing properties that need repairs?  Or am I limited to cash, or hard money?