All Forum Posts by: Asher Anthes

The way I think about it, because we know inflation is inevitable in the future, you should try to get as many fixed mortgages as you can now. If you have you properties leveraged at 80 and 90% LTV and your rates are locked in at 3-5%, when inflation does come your returns go up. Your debt service costs will stay the same, while your rents should increase proportional to inflation. Also, if you have a mortgage at 4% and inflation is 3%, your effective interest rate is 1%. Say inflation goes to 5%, no all of a sudden, that 4% debt is MAKING you money. So, I'm getting leveraged up!

Okay, so I currently have 2 properties. One is leveraged at 90%, and the other (which I live in and just bought 3 months ago), has a mortgage balance of $175,000 and a value of $215,000.

I have a third property under contract which I will purchase with cash. $40k + about 10k in repairs. It's ARV is about $65-$70k (maybe more). I have about 70k liquid now, but that will soon be reduced to $20k.

My question is this: should I use delayed financing and mortgage the 3rd property immediately, then after 3 months do an 80%,10% cash out refi on my other property. This would get me up to about 70-80k liquid. And, I could buy another property cash within a few months from now.

Or.. should I wait the 6 months on the third property to cash it out based on new appraised value (hopefully 70k) and then have more like 100k liquid to work with. This second option allows me to max out my leverage, but it also takes a little longer to get the 4th deal.

I'm 26 years old, have 65k to invest. And two rental properties with positive cash flows on both. I want to buy a cheap property with all cash, fix it up, get a tennant in ($450 positive cash flow is the goal). But I want to stay as liquid as possible. So, my question is, is there any way I can mortgage the property at 75-80% LTV quickly based on appraised value NOT the purchase price. I want to be able to tap the forced equity for my next deal. I've heard you have to wait 6 months or a year after the purchase time to go off a new appraisal. Any way I can do it quicker with a small lender or something? Thanks!

Yeah, I actually just got a house under contract that is a homepath property. So far it seems like a pretty good deal. You can put as low as 3% down (if OO) with no mortgage insurance, you don't need an appraisal. So, lower closing costs and keeps your monthly payment down.

I'm trying to find out more about them myself as this is the first time I've done one, but so far so good.

What requires me to wait 6 months? Is that a rule with hard money lenders, or is it a regulation with the banks that require you to wait 6 months to refinance? And, are there ways around that

David Schneider The rate isn't a big deal to me because I'm going to cash out refi after the repairs are done. So, I just need something I can close the sale with. I don't really need money for repairs either, because I have cash reserves to cover that.

Jean Norton I need to learn more about hard money lenders. I heard I can get one for 3 points and 15% interest. Which wouldn't be awful in I refinanced in 2 or 3 months after construction is done.

A cash partner is going to want a big cut of the profits, which I'm not really interested in doing.

I dont' really want to wholesale... How would I get it under contract though, if I wanted to wholesale it? Because for a cash offer they would want proof of funds.

Okay so I'm looking to buy this house owner occupied, and then rent out my current house.

It is a forclosure owned by a small bank. It has 11.5 acres, a pond, almost 4000 square feet. It needs a good bit of work though to make it livable, probably $30,000 to $40,000. The listing price is $175,000 and it sold for much more than that in 2002.

I put in an offer for $170,000 financed with a construction loan and 25% down, but they rejected my offer saying they want cash.

I considered looking into a hard money lender, thinking they may take that offer as it is as close to cash as I can get. But I'm a little nervous about doing a hard money loan.

I'm thinking about going back and offering $185,000 with financing, because I feel like if they price is right, they will agree, even with financing. I'm pretty sure they're going to want me to close in 30 days though, if we get a contract. How easy is it to close a construction loan in 30 days?

Also, we tried asking about a 203k but they didn't seem interested. But again, maybe they would agree if the price was right?

I feel pretty confident that there's enough equity in the deal to put even $50,000 into rehab, and then be able to cash out refi at 80% and make money.

Debt to income ratio is not a problem for me. Because over the last two years, I've been renting out rooms of my house to friends, and have claimed this income on my tax returns. This income basically washes my mortgage off my debt to income ratio, and then gives me more income after that. So, right now I can keep my current house and still get another on up to $280,000.

Lynn M.

I already bought and cash out re-fied my first house. I gained equity because I bough well below market value ($105,000) and did some repairs and two years later it appraised for $175,00. So, I want to apply the same principal to the next property, and the next one until I've built up $100,000 to $150,000 in cash that I can use for flipping or buy and hold.

I've heard 4 and 10?

What I'm thinking about doing is buying a house once a year moving every time, so essentially I would have 4 OO financed rental properties. Each time cash out refi-ing up to 80 or 90% and using the money for cash flips or cash buy and holds. Is the mortgage limit 4, or could I theoretically just keep doing this over and over.