All Forum Posts by: James Lanier

Instead of cancelling ask him politely to cancel so it won’t go against you and return his funds. 

He is 100% not worth renting too!  

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $243,000
Cash invested: $100,000

Turned a 2 bedroom and 1 bath into a 4 bedroom 2 bath. Renting it for $3,500 and the mortgage is $1453. I plan to cash out refinance in January. Somewhat a modified BRRRR supplemented also by my 9-5 career.

What made you interested in investing in this type of deal?

Experiment to see if I can increase the volatility of the money I invest.

How did you find this deal and how did you negotiate it?

Walking my dog around the neighborhood. Offered 25% down, 30 day close

How did you finance this deal?

I financed the deal with a HELOC and the renovation were financed mainly with funds from a cash out refinance

How did you add value to the deal?

Changed the property from a 2bdrm, 1 bath to a 4bdrm, 2 bath

What was the outcome?

The experiment is not complete. I will update in January after the cash out refinance.

Lessons learned? Challenges?

I’ll update in January.

@Pollyanna Gomez

Just to give you some perspective I'm also doing a refinance on my primary home from a 4.25 to a 3.1. With all cost for closing included. They even waived my appraisal cost because it was a SFH.

If you want to REI and use the property you are in now as a rental in the future, I would hold the funds for the next property not for refinance. If you look at the big picture your future tenant will be covering that mortgage anyway.

@Chris Connolly

They are two separate refinances with the same company. It's worth it for me because I can utilize the FHA again which means I can get into a Duplex with a low down payment. Plus the lower mortgage payment increases my cash flow even if it's a little ( that can be my property management payment when I finally stop self managing) .

Will live in the Duplex for the year and then make the move 

@Anthony Thompson plan is to use my FHA with just my name for a duplex and then use my wife's FHA with just her name on a single family

Neither! I'm looking for neighborhoods with schools, hospitals, and/or large companies nearby. As a buy and hold investors I want to go where the good renters want to live. If the community is stable or has a lot of rehabs it wont scare me away or attract me unless I see a good school, hospital, and/or large company within 10 miles of the property. 

But that's just me!

I also am in Rhode Island and the one thing I regret is not going bigger. I bought a 3 family and wish I bought a 4 family first. If you really want to REI with Buy and Hold in mind that first year is really a sacrifice to educate yourself on how to be a good landlord and make a decision if you really want to keep going.

You can always buy a 3 family or 4 family decide its not for you and move into a SFH after 1 year.

@Anthony Thompson correct me if I am wrong, but @Brandon Walason and wife have to share the FHA loan or do they each have it individually. Meaning they each could use it once possibly. To question is actually for me too because I'm currently refinancing and planning to use the FHA again. If I can refinance the property my wife owns too out of the FHA to use again that gives us even more options!

Congrats add me!

Good Evening, 

I have great news the interest rates are down and it was time to capitalize! I have started the refinance process. I will be refinancing two investment properties and my primary home. Here are the details of two of the refinances (other property will be started tomorrow):

Property #1- was a FHA Loan, Mortgage Payment 1,725.05 after refinancing the payment will be 1594.09. Other things to consider is that the PMI is removed and now the property will be in a Conventional 30yr Property Loan. The interest is reduced from 3.75% to 3.5%.

Property #2- was a Conventional Owner Occupied 5% Loan, Mortgage Payment 1605.61 after refinancing the payment will be 1429.16. Other things to consider is that the PMI will be removed and now the property will be in a Conventional 30yr Property Loan. The interest rate is reduced from 4.25% to 3.125%.

The best news is that I get the ability to use my FHA again! The plan is to purchase a Duplex in a great area. I will live there for one year fixing and improving the property as needed and then will use my wife's FHA (going to start the refinance process for her property tomorrow) to buy the dream home.

In total  by the end of this master plan I will have 4 investment properties and 1 primary home. 

1. Does the plan sound good?

2. Could I do better?

3. If you a have wrench to this plan, then throw it as hard as you can so I can prepare!