All Forum Posts by: Issac San Miguel

I personally wouldn't get into a dscr right now due to prepayment penalties - I do not think these higher rates are going to last for the next 5 years.

Let me know if you want to chat through DM.

Thanks,

Issac

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Agree with the above. There are many lenders out there, and so many variables depending on the size of the loan. Ask about volume, ask about reviews, see if they are google worthy (I.E. is there a legit website, do they advertise etc), and then make your choice based on how well you feel you can rely on them to be your partner.

You can PM me your current offer and I can give you some food for thought on it if you’d like.

Good luck!

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Quote from @Elaine Wang:

Just starting out, Plan to do my first flip this year. But still no clue for where to start out.

Could anyone be so kind to share some experiences on your first flip?

Questions are, but not limited to:

From what source you got the property.

How did you choose the Neighborhood that you would like to work on.

What are the price range.

How did you funding the project?

How much did you pay for remodeling.

How long did it stay on market until sold?

What is the margin it turned out to be?

What was the most important lesson you learned from this first property.

Thank you!

Hey Elaine!

Lots to unpack here but the simple answer is the profit on the flip has to exceed the total cost of the project, and be executed quick enough for it to be worth your time investment. In a market like Houston there are fantastic opportunities in the surrounding suburbs. Experience is such a big advantage in flipping a house, and finding someone who is interested in talking you through a project can be a huge help. Local real estate meetups are a great place to meet like minded people who have good experience in flipping real estate.

A good first flip could be something that needs minimal rehab but would pay back your rehab dollars and then some with minor updating. Look for something that doesn’t require major work (think roof, hvac, rewiring electrical, moving plumbing) as those things can eat up a budget quickly and focus on cosmetics like exterior and interior paint, updating hardware and fixtures, replacing appliances, and focusing on a high value area like a master suite and/or kitchen.

At least that is the 1000 ft overview. pm me if you’d like to chat more.

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Depends on the lender - some can reuse pull if within 3 months from original date of report.

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Hey Susan, I'm out of Austin, so familiar with the landscape - give me a holler if you want an alternative opinion to the HELOC. \

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Austin, Texas

Would be happy to look at it for you - dm me if interested.

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Indianapolis, Indiana

With the rates rising - pay attention to prepayment penalties. On some of the dscrs I have seen are 30yrs with 5%/5%/5%/5%/5% structure. While in the short term rates are expected to rise, for how long and how much is currently under scrutiny.

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Jacksonville, Florida

I can take a swing at this for you - dm me if interested.

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Quote from @Brent Huling:

Thanks for the replies @Mike Hurney, @Jay Hinrichs, @Brad S., and @Joseph Beilke for the thoughtful and professional replies. I don't get some of you in here with your responses - it goes far beyond disagreeing or offering help. I laugh at your face? Thanks @Henry Zhu - super helpful. This obviously struck a nerve with some of you which was not intended. Just to reiterate the facts, house appraised at value, did not appraise at ARV. I am not wrong and did not make a mistake. In fact, my mortgage company ran their own numbers, believes me and is willing to do an appraisal holdback and send a new appraiser out there on their dime to ensure we get the ARV value.

My main question was in regards to the appraiser. Not a fun guy to work with and has spoken to my agent, the seller, and the seller's agent. My mortgage company has already started an investigation and the appraiser has admitted to doing this, as well as the seller's agent confirming. That seems very out of line and did not help the situation. I was asking for specifics on appraiser rules and ethics and some of you have been very helpful, so thank you.

The house is a good deal, undervalued most likely, and already has an STR license that will rent for $1k+ per night, so I will be just fine. Doing a fix and flip loan and converting to a refi. Worst case scenario, I purchase as a straight refi and start renting immediately, or I rehab the house and sell with about a $250k profit. My goal was to renovate the house before I start renting it and I may have to put that off. I was looking details regarding a rogue appraiser. That is all.

Sometimes the amount of confidence people have behind a keyboard is beyond me.

It sounds like you have some recourse with the appraisal but as many have said it may not be worth the effort.

Kudos to your lender on this - I think they have your back at least.

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Quote from @Connor Williams:

Those replies make sense. I think overall the sfr have a better chance at appreciation in the future. The cash flow would be about the same, right now being that you essentially hVe to buy your cash flow in my market

exciting times! i love washington state. my very best colleague is a wasu alum. there is a ton happening up there right now.

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Tacoma, Washington

All Forum Posts by: Issac San Miguel

Issac San Miguel has started 1 posts and replied 290 times.

Post: 80% (or better) LTV cash out refinance for investment property

Post: Legitimate Hard & Private Money Lenders

Post: How did you buy your first flip

Post: New Investor: How do you maintain a good credit score if

Post: HELOC: interest only vs interest + principal

Post: Financing for a 6plex

Post: Bank that do not required seasoned properties for loans

Post: Lender for STR Investment Property in Michigan

Post: My appraiser gave details to the seller

Post: Multiple SFR or 1 multi fam?