All Forum Posts by: Chris B.

Thanks for your input.... I didn't get an appraisal done on the second property after they said I needed a commercial loan. The Zillow estimate is 233,000. I am into it $120k. The Zillow estimate on the 3rd property is 166k and the appraisal came back with 190k. I am into that one 103k and getting a refi of $114k tax free. They are in the same lake community. With these two refi's, I am getting all of my HELOC cash out of the deals and getting a small return.

I’m less concerned with the equity created by appreciation and elbow grease. May lose that if market flips.  I don’t plan to ever sell them.  Once I get my 10 doors,  focus changes to paying them off.  If I can find a 6 plex where there’s better cash flow,  I would in a heartbeat.   They don’t seem to exist here..  also my wife thinks multi families have a lot more turnover and lower qualified tenants.  Would definitely like to try one though.  I am a bigger podcast listener and know that’s how you grow quicker.I am open to all possibilities...

I can see your point of negative cash flow for maintenance after I refi. If I can get these all paid off, there’s a ton of positive cash flow.   I left the rat race... It is good having a good paying job as a backup.  Have had to invest some of my own income to make this happen.  In reality though, most of this was done with bank money from my primary home equity. Not my own cash.  

Appreciate the comments...

@Meredith Fox the credit union said they could transfer to my name at closing. My other worry is taxes. I’ll ask my lawyer and accountant their thoughts... Unless someone knows here... I’ll never purchase under a company again unless I attempt a flip. Thanks.

@Meredith Fox are there any tax implications of doing that? I know a bank can call the loan if they wanted to by transferring back. Hence the concern...

@Matt Rusk Hey Matt. Yup. All of mine are there. I just looked at one on Hillside in Hopatcong, but it’s over 30 minute drive so decided not to make an offer on it. I am not ready to let others manage my properties yet. I get multiple applications in days after my realtor lists them to rent. It’s getting harder to find them now though. Am looking in nearby towns now too.

@Chris Jackman

If you budget everything will be wrong with the property and need replacing. Then the ARV is still worth it, go for it. Otherwise, I always leave an out for inspections. I purchased a property on auction.com, but was able to do a walk through prior to it going to auction... So I had an idea what I was getting into.

@Kurt K. yes I am self managing. I am the initial contact with all issues. I have a good team built up though. plumbers, electricians and handymen. My main goal is getting everything fixed ASAP and with brand new stuff. No tenant has left me yet as I am going into year 3 of REI... Hoping to be able to do this full time in coming years.

Thanks John. I appreciate that... Yeah, I like to buy the ones that have been sitting for a while on the MLS. I see them pop up @ 119K. I add them to my watched list. when I see them go down $10 K every month I start getting excited. This is what the last one did. When it was $79K, I offered 55K cash with no contingencies. Closed @ 60K. Put 60 into it and it got appraised @ $190K. Trying to find the next one now. Just wondering if there were better opportunities around and thought I would ask. Bored to death with no homes to restore at the moment...

This question is for experienced investors...  Am I investing correctly? Or should I change strategies? I am buying the worst houses in good areas and fixing them up and renting them out.  The below numbers I am not including maintenance and inoccupancy. The rehab costs include any maint over past two years for two of them. The third, everything is new.,  Everything is in tip top shape and easy to manage. (2 Bed 1 bath single floor under 1000 sq ft.   All profits go back into the business for those rainy days.. I haven't taken a dime out.

First property purchased off of Auction.com. 

Purchase price: $42,000

complete rehab cost: $45,000

rental:   $1250  month

expenses monthly: $400 taxes and $70 insurance

I am refinancing this one. Appraisal came back @ $140K. Taking $84,000 @ 5.5%

Second property purchased off mls.

Purchase price $60,000

complete rehab cost: $60,000

rental monthly: $1500

expenses: $500 taxes and $70 insurance

This one I purchased through a S corp and would need a commercial loan to refinance.  Holding off for now because of the higher rates.

Third property purchased off of the mls. Which is my best deal yet, but didn't realize it when I bought it.

Purchase price $60,000

complete rehab cost: $43,000

rental income: $1550

This just appraised @ $190K.  I am going to take out $114K @ 5.5%.  I could take out up to 80% @5.875, but don't want to push it...

So the money I am taking out is going to help pay off my HELOC that I used to purchase these. I should be closing in next week or two. Are these good investments? Should I look to continue adding more now that I have more money to spend? Are there better opportunities elsewhere? Currently these are within 10 minutes of my house which I am managing on my own. Goal is to get 10 doors in next few years and quit my job working in NYC...

Would like to get into multi family, but not finding any opportunities near where I live in North New Jersey.  Any thoughts, or things I should look to change for future investments, or constructive criticism would be greatly appreciated.  

Thanks so much.

I have three rental properties in West Milford ,NJ paid for with cash. I have a HELOC on House I live in. I want to get my cash out of the rentals and put mortgages on them now to pay off my HELOC. Spoke with two banks. They want me to take a Mortgage out on my house I live in and pay off my LOC and just have a mortgage on my house I live in. My question is, Is it really this difficult to do the BRRRR strategy? My rental properties have great equity in them.. Seems banks don’t want to touch them... I would be happy with leaving 25 -50 % equity in them. Anyone have contacts with a bank in north Jersey that a solid investor can work with? Thanks so much.... Chris

OK, I have an appointment with a loan officer at a small bank on Friday. Spent a while on phone with him. He said putting the house under a corporation was a bad call in terms of getting a mortgage as it now falls under commercial and will get killed with the rates. He suggested two options... I get a mortgage on my personal house to cover the HELOC which will give me the lowest rate.. Or just do a 30 year on the one investment property and get as much out as you can... This is another bank that doesn't do HELOC on investment properties... If anyone comes across one that does do HELOC on investment properties, let me know.

Thanks,

Chris