All Forum Posts by: Brian C.

Not sure if in your post you're saying if you're trying to keep the property owned by the LLC or get the title and loan transferred under your own name. If you're trying to keep the property in the name of an LLC, the bank may not lend to LLCs and is requiring you to transfer it to your own name. There are plenty of banks that do lend to LLCs, so you can just look elsewhere. If you're trying to get the house titled and loan in your name (to get a better rate), you do have to transfer it, but don't need the seasoning period. I was worried about this as that is what I'm doing right now but the banks I've talked to do not require an additional seasoning period.

I am currently rehabbing a property in Colonial Beach, VA and will be looking to refinance (BRRRR) when I can after the 6 months. I would like to keep it in my LLC and refinance in a 30 year term. My expected numbers are:

ARV: 160-170K

Refinance amount: 110K

I have not done a refinance through my LLC, bit would like to as long as the rates/terms aren't too far off if I were to secure it in my name. Thanks!

I spent a while trying to find a lender to give a HELOC on a rental property. I eventually found PENFED, and it worked out great. It was fairly quick and painless.

 If you consider Stafford or Fredericksburg NOVA, then you can cash flow.  Your question of average cash flow  would probably be about 10-15% cash on cash.  That's because most properties you find probably will  not cash flow very much, but most people won't pursue a deal unless you're looking at at least 10%.  That means that  those that do pursue a deal would probably be on the lower end.  That's in the current market assuming close to market price.  It's been hard to find good fixer uppers that will have better returns, but I'm sure people do find them and do better.  

I've recently started to start to look further away to find deals that I can BRRRR and add value to so I don't have to use up all my funds on one property then save up for another.

I manage all my rentals throguh Cozy (cozy.co) and really like it. It allows you to input expenses for properties and categorize them, per property.  You can then export them into a summary or report.  It made taxes real easy.  

I also collect all my rent through there, do my tenant screening and it's all free.  They also have a maintenance request through there, but I haven't used that yet.

My post is just to get a general idea and discussion for those out there who wish to, or have been able to, retire early with real estate. I know the word retire can mean different things to different people, and the variables needed to get there vary tremendously from situation to situation and person to person. My ideal retirement still involves working in real estate, it just means I’m not working my 9-5 and I can take a 6 month+ vacation away without having to worry. I have a good idea of how I want to get there, I’m just curious of other people’s paths to get there.

My original goal with real estate was to provide additional income for retirement; have a couple paid off houses and help supplement retirement income from my 401k, social security (if it still exists), etc. Once I started to see the benefits of real estate investing, I realized I could use it to accelerate my retirement and not wait until I was 65. I’ve been a little addicted to the idea ever since and if I keep up my current pace and don’t have any major setbacks, retirement within 10 years is very possible. I could get there even sooner if I followed a lot of the advice from Bigger Pockets money podcast… I just don’t think hardcore frugality is my path forward.

I enjoy finding properties, fixing them up and making repairs and taking care of my properties. I just don’t want to be doing that in addition to my full-time job, I want to be doing that instead of it. Has anyone successfully retired early or close to it? Did it go as expected? Any tips along the way? Thanks BP community!

@Patrick Shawn Faherty The link below has the spreadsheet. I don't make any promises in regards to its accuracy so don't use it to make any financial decisions (that's my legal disclaimer). The first tab "Normal_Payments" is just the standard loan amortization spreadsheet I use. Put in the loan details here. They are then automatically replicated to the "With_HELOC" tab; don't put any information in there. The "HELOC' tab is where you put some of the specifics of the HELOC as well as income, bills, etc. Once that's filled out you can see the different scenario outcomes in the blue columns. The three scenarios are: 1. You make normal payments and save any extra cash. 2. You make normal payments and invest cash in something else (it uses the expected APR on investment value). and 3. You use the HELOC to make extra mortgage payments.

I hid columns C-G that shows how the HELOC stuff is calculated.

https://drive.google.com/file/d/1IWYl-FRMj_Cjxu7NA...

You absolutely can use a HELOC to pay down your mortgage more quickly and save a lot in Interest. I've done numerous scenarios on my properties to come out way ahead. You just have to be disciplined in how you do it. The idea takes advantage of two principals; first is that instead of paying, say $200 extra a month on your mortgage, you front load a bunch of those payments via a HELOC, say 10k. This means now your principal is instantly substantially less and each mortgage payment pays of significantly more principal. It would take 50 $200 payments to get to the same point. This is especially true if your mortgage is fairly new.

Second, HELOC interest is calculated on average daily balance. So, if you use the HELOC as your primary checking account and have your paycheck deposited into it, that 10k balance will actually be less once your paycheck hits it. Then, as you pay bills, it creeps back up to 10k. But, as long as you have positive cash flow, it never reaches the 10k and slowly gets lower. Now, your average monthly balance will be someone in between the high value after all bills paid and the low value once your paycheck hits. So, even though the interest rate is higher, your paying interest on less money. You could technically even leverage a credit card and use its interest free grace period to avoid even more interest, but you'd have to be really disciplined to do that. Keep in mind, that 10k (or whatever it is you use) could also be used to secure another property or investment that could pay off better. I'm trying to find a balance between paying down my debt as I acquire new debt.

I created a spreadsheet that actually lets you play with different numbers, income, mortgage, bills, interest rates, etc to get an idea of how much you can save and it can be pretty substantial, especially if you have PMI that you can get rid of with it (which I'll be doing on one).

@David Gran I've found some in the Stafford area that have met that criteria but no luck in actually get ab accepted offer. There are usually some REO's here and there that would have been great, but they typically are reserved for owner occupants for so many weeks, at which point they get snagged up well before then.

i posted this the other day with my workaround for the search issues.  https://www.biggerpockets.com/forums/25/topics/594...

Basically use Google to search it with "site:biggerpockets.com %WhateverYouWantToSearchFor%"