All Forum Posts by: Dylan Mortman

I'm trying to understand the amount of money that is either left in the deal or considered "gained" through a refi.

At the highest level - What do I subtract from the big chunk of money I get from a cash out refi?

Example: If I am lucky enough to buy a property for $320k, put 25% down ($80k down :: $240k loan), put $200K towards rehab, and lets just guesstimate about $35k in closing cost and holding cost while rehabbing. So roughly $315k cash out of pocket. I guess a super conservative ARV number (likely higher) of $650k... the refi (~70%) would come out to about $450k.

What do I subtract to figure out how much money I lost/ gained? ($450k) - (initial loan amount?) - (cash out of pocket?) - (anything else?).

Any info would be greatly appreciated

@Greg Kasmer thanks! The transfer of the security deposit was definitely something I was nervous about. Really appreciate you sharing your wisdom!

@Robert Masucci thanks! Really appreciate the clarification. They signed a 1 year lease, and I was advised that I can't see the full lease agreement until I'm under contract... should be submitting our bid this week though, so fingers crossed. 

We are in the process of buying our first investment property, it is a 3 unit, and all the tenants just signed a new lease prior to us (hopefully) closing on the property. However all 3 of the units are being rented below market and should definitely be increased.

What is the lease transfer process? Am I as the new landlord stuck with their current lease? Can I update it to add additional language to further protect my self? And most importantly can I increase their rent?

Any info would be greatly appreciated. (this is my first time ever posting on here! so thanks for the support!)