All Forum Posts by: Fareed Simpson Hankins
Fareed Simpson Hankins has started 4 posts and replied 7 times.
Post: Interest rates llc vs self
- Philadelphia, PA
- Posts 7
- Votes 1
Does the type of entity you use to purchase a property have any effect on the interest rate? Using your self vs an LLC. Or is it more about credit score, DTI and all of the other things. And if you use a LLC and have to be the personal guarantor, would that have an effect on the rate as well?
Thanks
Post: North Philadelphia Judson St
- Philadelphia, PA
- Posts 7
- Votes 1
House looks good. Did you buy the property in that condition, or did you do a rehab? Was this a BRRRR deal?
Post: Questions about financing a rehab
- Philadelphia, PA
- Posts 7
- Votes 1
Originally posted by @Kevin Paulk:
@Fareed Simpson Hankins start reading up on creative financing here in the forums and also there are a few BP podcast episodes as well.
As soon as i posted this question, some of the recommended forums with similar questions came up below. Seems like private lender and hard money lenders would be a good route. And I could do BRRRR too
Thanks
Post: Questions about financing a rehab
- Philadelphia, PA
- Posts 7
- Votes 1
Hello,
It's 2021 and I am creating my goals for the year.
I was considering the FHA 203k loan to buy my first property (deplux) and rehab it for a long term rental. I don't think I'd be able to though because there seems to be a requirement of working the same job for 2 years, and I am graduating college in a few months. Also, MIPs...
What are other alternatives that would allow me to do this that include the financing of the rehab? Would a conventional bank loan with rehab cost included? Is using a hard money lender & then refinance an option that people do in this scenario?
Thanks
Post: 203k Loan Question.....
- Philadelphia, PA
- Posts 7
- Votes 1
Originally posted by @Jason Wray:
@Fareed Simpson Hankins Keep in mind you could always buy the home using conventional 5% down and avoid the FHA UFMIP & MIP. You can refinance the home after (6) months and take cash out to find a contractor who can than convert the garage into an additional bedroom. You may just want to look at the local market and see how no car garage may or may not help future value. Your monthly payment on the loan would be a lot lower without MIP versus PMI and no 1.75% UFMIP.
Ok. Thanks. Doing it the way you suggest, am I able to include repair costs in the conventional loan? And are you able to do this conventional 5% down with an LLC?
Post: 203k Loan Question.....
- Philadelphia, PA
- Posts 7
- Votes 1
Im new to the site, and have begun analyzing properties, educating myself and building cash reserves until I’m ready for my first deal.
I've found a duplex a few mins from where I grew up (Philadelphia) that comes out to a nice cash flow and nice CoC ROI%. To me, it looks like the garage has the potential to be converted into a unit. Probably not suitable for a long term rental, but could be nice for something like Airbnb to generate some more income. It's a pretty big garage separated from the house. Assuming no utility services are currently in the garage. Could that kind of rehab be included in a 203k loan? If so, what kind of cost
Post: 203k Loan Question.....
- Philadelphia, PA
- Posts 7
- Votes 1
Im new to the site, and have begun analyzing properties, educating myself and building cash reserves until I’m ready for my first deal.
I've found a duplex a few mins from where I grew up (Philadelphia) that comes out to a nice cash flow and nice CoC ROI%. To me, it looks like the garage has the potential to be converted into a unit. Probably not suitable for a long term rental, but could be nice for something like Airbnb to generate some more income. It's a pretty big garage separated from the house. Assuming no utility services are currently in the garage. Could that kind of rehab be included in a 203k loan? If so, what kind of cost