All Forum Posts by: John Chong

@Jonathan Swift Welcome! I'm not in Detroit but don't hesitate to reach out if you have any questions! 

@Anthony Freeman If you're able to get the multi unit with good margins there shouldn't be a problem cashing out. Same seasoning will apply, 3-6+ months to use the new ARV. Most investors refi/cash out every few years depending on appreciation.

How many units are you looking at? 

@PJ Boxel I agree with you, I think every investor should learn how to run comps. If you have access to the sold data then you should be good to go. I would keep the comps tight, the same neighborhood (1 mile max if there's no comps in the neighborhood, no older than 3 months, no more than 10 years in age, same bed/bath, lot size, garage, and similar finishes.  

You should be able to do a cash out refi 3-6 months at 70% LTV. Local banks and conventional lenders have different requirements. A DSCR loan might be a better option if you don't want to wait 1 year.

@Gregory Wesley DSCR will be the easiest in my opinion. Its light doc and you won't have issues with the other 2 partners being self employed. 3-6 months for 70% LTV and 6+ months for 75% LTV.

@Evan P Stegman I saw you purchased it for $317K back in 2021 and now you're estimating the value at $450K. There's a little over $100K in equity in the home.

The main thing to consider is the cash out refi %. With most lenders in this market you'll see 75% as the max LTV on a DSCR loan. With 75% you're looking at roughly $337K minus closing cost and fees.

How much was the estimate to water proof the basement and how much do you think you'll get each month from that unit?

Depending on the cost it might be better to use the cash out funds/savings to purchase another property. 

In my experience I've worked with a lot of OOS investors/funds buying in Houston. Houston doesn't have much zoning so that's one thing to keep in mind. Most neighborhoods also have an HOA.

I don't think receipts are required like everyone mentioned but its good to have for your records and more of a CYA 

I know the OP is a few months old but welcome to Houston! You should be able to connect with wholesalers and other investors at local meet ups and investor events. Feel free to reach out if you have any questions

Sounds like a good event!