All Forum Posts by: David Shifirn

@Susan Chagalian

I owe 600 k on a 4 flat worth 1.35. It has 30 ur fixed rate of 3.5%. Your saying you could give me a heloc on the equity? What rate?

Thx

@Melissa Villegas

They suck let them go, fix the water issues and put new happy tenants in place.

@John B.

Condos are not great investments from cash flow standpoint in the city. I own one that I rent out that's completely paid off. For the 500 g equity I have in it after taxes and hoa I net $1600 a month. Compare that to the 3 flat I own where I have 250 equity in it and the tenants pay the mortgage and taxes and I net $2000 a month. Now the 3 flat has a ton more management and upkeep but it's a better investment numbers wise. I bought the condo with my wife to live in and we held onto it after moving to a sfh And rent it to a friend. You could buy a condo and live in it and enjoy it and then sell when your ready to move or pay it off and do a 1031 exchange upon sale into a multi family. I still believe ownership is better than renting but to each their own.

@Ibrahim Yamini

Happy wife happy life. Her credit scores close enough to yours it won’t effect your lending ability. It’s more a marital issue. You guys need to be in agreement on money moves. Just my 2 cents here though abd different marriages run things differently.

@Nick Rutkowski

Usually the lending bank will put the funds with a title company and require an i spect ion certifying that the work is x % complete leading to x draw and then pay the subs directly.

Not sure how it works if your paying all cash though. I would ask the gc how far along the project is when draws are requested and pay for an inspection to confirm unless you know how to do that and then pay the subs directly if your worried after they sign a lien waiver.

@Stephen Keighery

How? If you own it in an llc it needs to be a commercial loan and they don’t offer 30 yrs. A personal loan in your name can be funded through a residential loan and get that length. The only way I know to obtain a 30 yr length loan with a business entity as the named party would be to get the loan through your name as a personal residential loan and then perform a quit claim deed into the llc. Technically that could call the loan due at that point though, although I’ve heard it’s rare. Please share.

Thanks

@Jonathan Crawford

I’m closing on a mixed use building 150 under ask price. Make your offer and spend your money. Seller can always say no thanks. After they sit a while your 18500 offer starts to look good.

I own 5 units. 

1.Do I need to keep each individual security deposit in a separate checking account?

2.3 of the units are in a 3 flat. Can I keep those together in one checking account?

"Intermingling funds" makes this confusing. No intermingling with personal money makes sense but does that mean no intermingling with other security deposits as well? Also, if you own numerous residential rentals and have to keep the deposits in individual accounts do people maintain multiple accounts at one bank? How are others handling this with multiple units?

Thank You in Advance

Adding to portfolio;

1. Mixed use building. First floor commercial lease 4250$ a month with personal guarantee for 24 months. Second floor apartment rented for $2100 a month just renewed. Taxes $14000 annual. Water $1000. Insurance $2000.

I’m getting a 14% cash on cash return calculation. I’m buying for 700,000 with cash and will refi out 75%. List was 850,000.

2. Multifamily listed for 825 I’m purchasing for 762500. 3 flat generates $6100 A month currently. Taxes are $15,000.00. Buying with mortgage.

I’m assuming 25% equity in on both deals and a 4% mortgage in the calculations. Thanks for any analysis thoughts.