All Forum Posts by: Cody Burke

I found a lender that will loan 80% future ARV. I have to get list of repairs/upgrades, they appraise, them loan 80% of that. It is 12 months interest then converts to a 15-20 year amortization one time close loan. Can someone help me figure out if this would be a good Brrrr loan but just refinancing up front or what. Any Input would be great.

@Robert Damato what are your thoughts on that loan. Or structure

@Robert Damato. Thank you for your reply. That’s alot to try to digest.

I found a bank that will loan 80% of future ARV. I find a property and give lender a list of the repairs/updates and he gives it to appraiser. Example, buy for 50k, has 30k worth of updates, ARV of 100k, they loan me 80k. Its is interest only for 12 months then converts to 15-20 year amortization. This is a one time close loan. Can someone tell me how well or if this is even a good loan for rental property. I know my cash flow will decrease to due years amortized, but am I overthinking something here?

@Anna Buffkin  Thank you.  That is great advice.  I really appreciate your example.

@Anna Buffkin  Are you getting the quotes from the contractor before you get the commercial loan or  guessing rehab cost and getting loaned that amount?  Is there no grace period that you have to have the property rented out before refinancing?  I'm just trying to figure out the best way without needing a bunch of capital for cash purchase.

Thanks Kevin and David. I appreciate your input. Is it possible to take out a loan to purchase a C class property, rehab, then refinance for ARV? Also, are the properties you are buying foreclosed or just finding cheaper houses on MLS.

My wife and I have partnered and completed a flip with around 10% return on our money invested. I am wanting to build a rental portfolio of single family houses with the BRRRR method. We are wanting to acquire properties without partnership but not for sure how to obtain without having surplus capitol to purchase outright. We are not really interesting in house hacking. Any feedback would be great.