All Forum Posts by: Dan Gamache

@Brad Moore you can get a 30 year loan with private lender with the property in LLC. Can go to 75LTV of the new appraised value. I'll send you PM.

@Cody Burke in order to analyze the deal we need purchase price, $ amount of rehab, after repair value, and estimated monthly rent once property is rehabbed.

@Chad Carrodus Is this for owner occupied or Investment property?

@Scott Kimberly once rehabbed you can get probably get financing at local bank. Most rehab lenders I know of only do 1-4 units for the purchase/rehab loan.

@Matt McGuire in the private/hard money space, the same rules apply to refi. The lowest loan amount/property value for a single property loan is 50K loan/75k value.

@Scott Kimberly Once you are over 4 units it will be more difficult to get financing for both the rehab loan and the long term rental loan.

@Nicholas Anderson You also may be better off getting a fix n flip loan for purchase/rehab rather than using your own $ for purchase & rehab.

@Dylan Obrecht I've worked w some investors who rented out to college students, one of the benefits was increased rent because they charged separately for each bedroom. I would think negatives are turnover, dealing w parents, kids trashing the house. 

@Joe Delgrosso You can do a fix n flip loan that would require 10% down of purchase price + rehab budget ($10,500 downpayment from example above). You would also have a 35k credit line for the repairs (works on reimbursement draws). You will pay origination fee 2.5-3.5 points and be charged interest rate 10-12% while in the loan. At 90 days of ownership, or when rehab is complete if longer than 90 days, you can refinance to 75% of the new appraised value into long term rental loan (6-12 months ownership if you want to refi w bank). Based on your #'s above the #'s work as long as rental income is enough to positively cash flow. 

Your initial loan amount from above scenario would be $94,500 and you are eligible for a loan amount of 105K (75% of 140K) which would cover paying off initial loan & closing costs for refinance.

@Nicholas Anderson there are loans that will allow you to cash-out refinance based on the cashflow of the property (along with other factors; credit score, assets, LTV) and not income. Slightly higher rates/fees than traditional banks.