All Forum Posts by: Jason E. Smith

A commercial loan will have a shorter amortization period and most likely a ballon before full term. Unless you've maxed out your full 10 residential loans available, I wouldn't use a commercial loan on a residential property. As long as you're still living in it you should have no problem finding a lender to refi at 95% LTV, just don't say anything about your considering moving out. If you do an HELOC for an LTV based upon you living there (say 95%) and then a few years later the bank finds out you aren't living there they MAY reduce your LTV (say 75%) on your HELOC. Not real sure on that because I've never done that. But a fixed rate loan is all yours until you try to refi if you're not living there, unlike a HELOC which could be modified. And the best HELOC I can find on residential rental dwellings is 80% LTV, but you can easily get 95% LTV on a primary residence. Good luck Thomas!

JR French with 360 Contractor services in Rock Hill.  They've done work for me and did good quality at a good price.  Hope that help Aaron!

@Dwayne Hunter can you elaborate more on income, expenses and purchase price on what you believe you will clear $300 on?  My agent sent me a listing in Charlotte last week that was a triplex, each unit rented at $700 a month. It went on the market at $230k and was under contract within 24 hours. Not sure who's buying like that, maybe mutual funds willing to pay cash and settle for 5% return. But for someone like myself wanting to put down 25% and wanting cash flow it doesn't work at that price. I know buying a home for $100k 25% down that rents for $1,000 a month won't cash flow either. I know this because I've had a couple for 10+ years and I'm selling them as we speak. 

Elliot, you can get the exact amount charged for 2016 Taxes from Mecklenburg county website, probably less than your estimated $2k but you can get the exact dollar amount as it's public information. Your rents sound high for a 2 bedroom. I have a duplex on the north side of charlotte, 2/1 each side and they rent for $675 a month. You can theorize numbers all you want but there are things the best of us can never predict. I had a water leak behind a wall in a unit last year that resulted in mold remediation and repairs to the tune of $18,000.00. I never projected that in my original CapEx budget. Since then I just use fifty cents on the dollar for operating expenses (management, vacancy, maintenance, taxes, insurance and CapEx) and if your debt service P&I are less than that you should have cash flow. So if each side rents for $700 a month you should get about $250 a month in cash flow. Stick with around 7% for vacancy in my opinion. For anyone who was investing back in 2008 era, many people lost jobs and consolidated housing. So it reduced occupancy rates and if you plan on holding 20-30 years you'll probably see another time like that. Best of luck!

contact Mark Lindsay with Lindsay real estate holdings. Tell him Jason Smith sent you. 

Why not refi? should be able to do 96.5% LTV since it's residential and you're living in it, you've owned it long enough that the title is "seasoned" and rates are still low.

Welcome to BP Brent!  

Marla, I'm an investor in the triad (Greensboro, Winston and High Point) I have a home tenant occupied I'm about to put on the market in Winston. PM me and I'll give details and can answer any questions you have about the area. 

I've used Baldwin property management in Winston for 10 years and I'm happy with them. Good luck!

Mike, take a listen to bigger pockets podcast 196. It was on this subject and featured a CPA. Good luck!