All Forum Posts by: Bill Plymouth

@Ryan Blake @David Wandel @Kenneth Garrett

Thank you all for your answers!  I have a scenario for you guys.  Maybe you can help.

Lets say I have a property where after all is said and done, including repairs, it will cost me 96k. I use a hard money loan with 90% LTV. The ARV is 130k. When I refinance, do I get the whole 130k, or do I get the 34k of value that I added?

@Tom S.  That's what I thought

@Frank Wong That makes sense. That is probably the strategy that the HML I was speaking to meant when he talked about using hard money for a rental.

Is there any situation in which you would use a hard money loan for a buy and hold?  

@Amy Tracey

Welcome to BP.  I’m in the Philadelphia area.  If you have any questions I would be glad to help!

@Joe Villeneuve that was brilliantly explained. 

Thank you everyone for your education on the subject.  I feel like as a newbie i get caught up in the "rules of thumb" to much.

@Anastasia Tran I can't give you advice on what i would do because I am Still looking for my first property.  What i can tell you though is that Zillow can be inaccurate on the price of the property by 40% in either direction.

Look at other duplexes that sold within the last 6 months that are similar to yours.  When I run comps in my market, I don't go farther than 0.5 miles from the subject property.  I only even go that far if similar properties are scarce.  Also, be wary about crossing into different neighborhoods or crossing main Roads.  There is a neighborhood in Philadelphia where on one side of the intersection, the average home price is 131k.  Literally across the street, the average home price is 180k!  That's a 50k difference just for opposite sides of the street.  Keep these factors in mind when running your comps.

Good Luck! 

The Millionaire Next Door

@Immanuel Sibero thank you for that post.  That is great information. 

@Patricia Steiner @Michael Pearse

Thank you both for your input!  I appreciate the information.