All Forum Posts by: Charlie DiLisio

Looking for any ideas to search for my dilemma with an investment property.  Thanks in advance!

I have an investment property in Detroit purchased last March. I had an uncle and his nephew as tenants for a total of $1600.00 per month. Uncle passed last month with a heart attack and now I am coming up short with the expenses for the property. His significant other has moved in and I am receiving a total of 1200.00 per month. Purchased the property for $79,000, mtge is $678.00 P.I.T.I. but I have two business credit cards used to re-hab the property from a 3-1 to a 5-2. Amex and home depot payments total 650.00 per month. Property value around $120,000. I put 25,000 cash into the property for the down payment and closing costs. If I can re-fi for $90,000 I could pay the cards off and it will cash flow again. Looking for a solution without selling the property which would have a capital gain I was told unless I wait until next March. Any creative ideas? I also have a partner who is willing to be a co-signer if needed. Thanks for your time and advice.

Charlie DiLisio

Are there any new deals because of Covid or any recommendations as to where to apply.  Appreciate the feedback.            Following.  Also any one interested in connecting for "Mastermind ideas and sharing of strategies to further our agenda.  The new normal needs to be adjusted for our profit margins.  I hope to participate in such a meeting of minds a few times a month.  Any thoughts?  Best of luck for 2021.  I am excited for the prospects and learning to better ourselves.    Regards,  Charlie   (south Florida/Detroit  area)

I'm following Maron.  Interested in the outcome of your post.  I'm looking for a re-fi of a property I have in Detroit.  I had two tenants and one of them just died a few weeks ago.  I'm ok on mtge. payment but not on two re-hab cards I used to make the property from a 3/1 into a 5/2.  I would be cash flowing with just the mortgage and other expenses but need to pay off the two cards that are costing me 700.00 per month.  The property has doubled in value but since I don't live in it, I can't get a heloc but would prefer a re-fi and pay off the cards without additional monthly costs.  Looking for creative ways to do it because I want to keep the property and If I flipped it I would have to pay capital gains on it.  My two year mark is next March.  

Property is now a 5 BR/2 Bath with a 2 car garage.  Purchased in April of this year and looking to purchase another property with heloc or L.O.C.  I hope to obtain using this property.  

I heard that appraisals only count the upstairs square footage.  This property is bungalow and I added 2 bedrooms and another full bathroom down in the basement.  Also  added an egress window in the basement.  Thoughts on possible heloc or ways to get cash from the property.  I see tons of great deal going on there now in Detroit.  Any suggestions will be appreciated.  

Afternoon Wendy, you referred me to a great lender for my property in Detroit.  I purchased it and am interested in installing an egress window in the basement to increase the value.  Are you familiar with this?  I will be coming up in the middle of July to have this done and interested in your opinion on it.  I was told they don't give any credit for basements without the egress window and it seems like a good idea for safety as well as value.  Also thinking about getting a heloc or similar with the added value.  I installed two more bedrooms and a full bathroom downstairs already.  Thoughts?  Hope you are doing well and staying healthy in this crazyness.  

Business credit cards.  Accumulate all you can over time and don't ever use them for anything but making you money.  I have cards from Chase, Navy Federal, Pnc bank, Bank of America, Discover business, Amex, etc. etc.  All are 10k or more and most companies give you more than one.  It is a strategy very popular but takes time to get.  Easiest way to get them is to personally guarantee them because they go by your established credit.  Once you get them they do not report to your personal credit and don't care about high percentage use as long as you pay them back on a regular basis and I always pay more than required.  After I re-hab a property I pay them completely off.  No bread and butter items purchased only business costs to make money.  

Next!  Sorry to hear it because you are so close to the finish line.  I started building up my business credit 5 years ago and have about 200,000 in cards with no balance.  Something to look into for your future.  They don't count against your personal credit and go unreported for your debt to income ratios. Personal credit score is not affected.  I use them for re-habs all the time and not for anything else.  Wishing you the best of luck and as others have said, stick with it and you will get there.   

I'm with Cassie.  Bite the bullet and do it right.  Never give up on your goal and learn from it.  Too bad none of your partners were not in the construction business.  I always do my own work and have people who I know to do the trades I am not expert in.  It's not the end of the road but the beginning.  Better to take a loss than to give up and lose your credit standing for multiple years.  Think about getting a construction guy with a track record as one of your partners and really check out who you are dealing with.  Wishing you the best and you are almost to the finish line on this one.  Get hands on and do it well.  Due diligence is key here and everything matters.  You got this Dakota.   

How did you arrive at the 12,000 down payment?  Its 3000 for every 100,000.  Is the duplex 400,000?  Just curious.