All Forum Posts by: Caeden Jacobs

Hey Jaron, my current interest rate is 5.75 - I am about to up the rent upstairs to 875 and put in new floors and paint. The tenant up there has been a little hard to deal with so I am not renewing her lease.

The downstairs where I am should easily rent at 950-975, and there is a 2 car detached garage I could add for $50 per month to either tenant. 

So COC would be insane (211%) but because I had seller cover closing since roof needed done, and my down payment was 3.5% on 125k. If you add in repairs / new roof my COC is 46.20%. My yearly cashflow fully rented should be about $11,817 after PITI and utilities are covered by tenant(s). The reason I would refi is so I could qualify for new FHA loan, that way I can get into a 3-4 unit with only 10-20k in the bank like this one.

Hey Chris I just pulled rates through my system (I am a MLO) and I do see a bank that does 15% down! That means on a 200k property I could put together 30k or so and possibly close deals that way, which is very realistic for me. I also have a friend who could partner and bring money as well.

That makes sense Lawrence, sounds like I may just have to increase my payments monthly or try to save that 25% down on the next one.. 

Hey Chris, with my only goal being to purchase MFH not SFH, I'd need about 50k down + 4% in closing costs for the type of property I want (3-4 units) on a conventional loan. I make okay money but 106k a year does go that far anymore and I have a family + stay at home fiancé so saving up 60-70k is a stretch and would take years. I need to utilize FHA program to get low down payment on multifamily properties because 15-20k in saving is way more doable. Unfortunately the property only appraised exactly at purchase price of 125k BUT I really do think if I have the rents at 1800 a month total, it should be worth more than that.

Hey Zack thanks for the response that makes total sense. I am actually a new MLO who was just licensed in January (closing my first loan next week) so I have other MLO's I can work with that have way more experience and still get paid as a LOA haha. Luckily I make six figures (I sell cars as well) so I won't need the rental income from this 1st deal to qualify for the next. I guess it's going to come down to the appraisal value. Will cross my fingers and make sure I do everything to get a higher appraisal! With 25k in upgrades, increased rents, do you ever see appraisals jump up 40k in 1 year?

Hello everyone, I am a new investor who purchased my first rental property a year before this post. I purchased a upstairs/downstairs duplex for $125k. I rented out the upstairs for $800 a month, and occupy the downstairs. Since I have owned the property I have put a new roof on it ($18k), all new stainless steel appliances ($3k) and new landscaping ($2k) the driveway is suppose to be done for ($1.5k) here next month. That is about 25k in upgrades, and increased rents about 30 percent from previous owner. SO my question is, WHAT IS THE BEST EXIT STRATEGY. From reading the guidelines I see that I need 20-25% equity to refi. Which means it needs to appraise for 35k higher than I had just bought it for. How feasible is that? Should I refinance into a conventional loan OR should I refinance into a investment loan such as DSCR. Also when I go buy the second property, will FHA let me do a new loan with it being my 2nd mortgage... If anyone has input on this let me know, I am going to get ready to start the process but if you have experience in a similar situation I'd LOVE to hear it.