All Forum Posts by: Jeremy Kuchenbecker

What is everyone's take on the buy/hold rental market in Orlando? I'm looking at du/tri/quadplexes and having a difficult time finding anything in a +C area with acceptable (10%+) cap rates. I still think we have some juice left in the market and rental rates but the margins are really tightening up. 

Thanks Charlie. I spoke to the lender and they have fairly high refi rates. We'll probably end up doing a refi into a 15yr with just my dads name on it. The goal is to pay it off quicker for his investment goals of retirement income and to take my name off to make it easier for him to cash me out when I decide to pull out of the property. 

Originally posted by @Charlie Fitzgerald:

You can request them (current lender) to do a name only refinance...they don't have to and they will charge you normally to do it if they agree to do it.  Or, you can simply refinance the property without your Dad on the new loan.

I co-own a duplex with my dad. Its a property we have owned for 2 years with a 30 year conventional loan. Is there a precedence for being able to remove a name from a loan, or does anyone know of how to do this? I haven't gotten very far with the lender, but most of the people I speak to there do not sound like they know what they are doing. 

Thanks in advance!

Originally posted by @Michael Fortier:

If you can replace the property with one with more cash flow than it would make sense to replace it. If you cant why would you get rid of the cash flow you currently have? 

I don't have a property lined up for replacement, but am planning to re-invest it in a more expensive property. My line of thinking is that I would be able to find a property that would be able to provide greater rental income AND appreciation than this current property i.e. 3%/yr appreciation on $200,000 is greater than 3% on $100,000 and expected greater cash flow. 

Jeremy

I wanted to get some additional input, I'm torn on what to do.

I have a SFH that I've held for 1.5 years with good tenants in there now, located in a C area. Cash flow after PITI is $510/month. So far been very good on maintenance and I would safely assume this will continue as all the appliances and roof are only a few years old with warranties. My only two concerns are the septic system, which is the original from 1976, and the area being somewhat limited in terms of the tenant profile, although the current ones have been great.

I put a total of $24k into the property and have the ability to net around 24k profit from the deal(100% return). I could obviously use the money to invest elsewhere but really torn on which way to go....

Jeremy

Really appreciate all of the input, definitely a lot of content! The property is located in Florida and so far I haven't been able to find any specific information on limits of how much the property value can increase year over year.

When it was bought, I put in 5k worth of rehab on interior items i.e. cabinets, carpets, etc. The assessed value doubled from 30k per unit to almost 60k. The previous owner was an investor with no exemptions filed on the property and it was not owner occupied, nothing significantly changed other than I raised the rents a by $100/side.

In Florida we have homestead which doesn't apply because its not owner occupied, but there is also a "save our homes" credit which I am looking into. The credit was designed initially to prevent homeowners being priced out of their own home as property taxes increased (especially in the early 2000's). It may not apply to a purchase, but I haven't had much time with work the past few days to look into it. Not that it matters, but that does make sense to have a cap on the tax increase to prevent someone from being unable to afford their own home in many situations.

Jeremy

I purchased a duplex about a year ago. I just got a letter from my lender stating my property taxes were going up, almost double to what they were previously.

Is that normal? Is that even legal? Still a great income producing property but my property taxes literally doubled.

Appreciate it Chris, good to know about the 6month appraisal period. If the difference is 10k, the credit would only be $350 which I'm fine with. Hopefully if this is an issue the credit towards closing costs will be sufficient. The buyer came up a good amount from their initial offer so I doubt a few hundred bucks will be a problem either way. Jeremy

I'm in the process of selling my primary residence and just went under contract. The buyer is doing a 3.5% FHA loan. Based on comps in the area were probably going to be about 10k off on the appraisal which is going to put a kink in the contract. I'm trying to plan ahead - if the buyer does not want to put additional money down to get the ltv in line, what options do I have? If they negotiate, would I be able to give them the additional money down to cover? Appreciate any and all help! Jeremy

Appreciate all of the feedback. Definitely will check out TCF and a few others that were mentioned. Are many of these regional or local lenders? It seems like most of the national mortgage firms and banks stay away from home equity lines below 80%. Again, really appreciate the feedback.