All Forum Posts by: Joseph Dike

Hey Skylar,

Can you share who you went through for that product?

Thanks,

-Joey

I have an investment property that I purchased with 25% down on a 30/yr loan. Since then I have become a member of a multi-member LLC with 2 other partners. We have done a few deals, and are just trying to keep it going.

The question I have is, if I want to "sell" equity from MY rental to them and move the rental I purchases to our LLC ...

1) would I have to pay taxes on the money I receive from them for that equity?

2) I understand the possible "due on clause" issue with the bank if I move the property to the LLC, but what other issues could anyone see as well?

3) Any other tips, ideas, thoughts would be great.

Thanks,

-Joey

Hey BP,

So here it goes ...

I have been getting really interested in RE the last few months, and decided enough is enough for just looking and analyzing deal after deal without taking actions, so I applied for a conventional investment property loan on a multifamily, which was approved with 25% down ... great! So I've been looking at properties (duplexes, triplexes), and finally found a duplex and made an offer (waiting to hear back). If the offer is accepted, I have to come with 36K cash to the table, which is fine. That duplex would cash flow 200$/mo - 100$/door.

Just browsing, I found a what seems to be a pretty good deal on a duplex foreclosure in another state going for about 30K. It would probably need about 35K in rehab to make it rent ready and ARV about 140k, and could cash out refi for 100k. I would want to keep this property and not resell it. Now mind you, the only deal I have to date is my personal residence. My wife says its spreading pretty thin, and that i need to slow down and crawl before I run and not go balls to the wall so fast from zero deals to a deal, and a BRRRR project at once. I am the main W2 provider of the house, and after 100k being tied up in these deals, we would be tapping in to our 6/mo emergency fund to start paying bills, until we can build our bank roll again from my W2 job.

A) If i did do the BRRRR duplex, should i cash out refi or keep the money in and own it outright with higher COC return if I can afford it? If i don't cash out refi, it would cash flow 275$/door. If I do refi at 100K, more like 20$/mo total. Should I cash out for lower? On a cash out of 80K, cash flow is about 125$/mo total.

B) Am i going to fast? Do I need to slow down and focus just on the current duplex acquisition i have going on?

C) Should I try to borrow money/partner up, or use all my own straight cash?

Please any input. Thank you

-Joey 

Hey BP,

So here it goes ...

I have been getting really interested in RE the last few months, and decided enough is enough for just looking and analyzing deal after deal without taking actions, so I applied for a conventional investment property loan on a multifamily, which was approved with 25% down ... great! So I've been looking at properties (duplexes, triplexes), and finally found a duplex and made an offer (waiting to hear back). If the offer is accepted, I have to come with 36K cash to the table, which is fine. That duplex would cash flow 200$/mo - 100$/door. 

Just browsing, I found a what seems to be a pretty good deal on a duplex foreclosure in another state going for about 30K. It would probably need about 35K in rehab to make it rent ready and ARV about 140k, and could cash out refi for 100k. I would want to keep this property and not resell it. Now mind you, the only deal I have to date is my personal residence. My wife says its spreading pretty thin, and that i need to slow down and crawl before I run and not go balls to the wall so fast from zero deals to a deal, and a BRRRR project at once. I am the main W2 provider of the house, and after 100k being tied up in these deals, we would be tapping in to our 6/mo emergency fund to start paying bills, until we can build our bank roll again from my W2 job.

A) If i did do the BRRRR duplex, should i cash out refi or keep the money in and own it outright with higher COC return if I can afford it? If i don't cash out refi, it would cash flow 275$/door. If I do refi at 100K, more like 20$/mo total. Should I cash out for lower? On a cash out of 80K, cash flow is about 125$/mo total.

B) Am i going to fast? Do I need to slow down and focus just on the current duplex acquisition i have going on?

C) Should I try to borrow money/partner up, or use all my own straight cash?

Please any input. Thank you

-Joey 

@John Warren HELOCs just seem scary, the payments are not an issue, but maybe just because this is my first deal I’m trying to work, its all a little overwhelming and I just get nervous.

@Michael Garofalo same to you Mike, thank you for the input and thoughts, but the property has been sold my agent tells me. Things to remember on my next try. Thanks again

@John Warren well thank you for the advice and info, but it looks like i was a little late, and the property has been sold. But good information for me to look at on my next try i guess. Thank you again

Hello all,

I hope I’m posting this in the right section.

I found BP a few months ago and cant stop reading. So much experience and knowledge on here, just glad I found it.

Now for the story.

I bought my primary residence about 3 years ago. To date I have about 60k in equity I am able to pull out of it. 20yr draw followed by a 20yr repayment. I am contemplating purchasing a fourplex for 280k with 25% down, so I would be coming out of pocket 10k as well. Cash flow is 2400$/mon as of now (600$/unit), each unit is 2bd 1ba, but could increase maybe another 100$/unit. Only water (100$/mon) is landlords responsibility, everything else by tenets. PITI is about 1630$/mon, and I figured another 500$/mon for vac, repairs, and capex. There is also a 4 car garage that that landlord uses for storage and tenets do not currently use, so could provide a little extra.

This would be my first rental property. Does this make sense. Do the numbers make it an ok deal? Any advice is welcome. Thank you

Joey