All Forum Posts by: Justin Griest

Thanks for the response, I ended up going with a conventional cash out refinance on the duplex I own, I am waiting on the appraisal but should be close to getting all my 40k out of it.  

I am putting part of that money down on the duplex I have under contract and using the rest to remodel the empty side. Should be able to raise the rents and eventually BRRRR it.

I recently put my goals on paper and the BRRRR method will help me achieve them!
 

Hi everyone, 

I currently own a duplex outright currently worth around 65K(Bought for 30K cash, 10k repairs so 40k all in) It is performing fine, about 10% cap rate, it is in an LLC and is located in Kansas. I am located in TX. I was able to set up a commercial line of credit on my duplex through a commercial lender in KS.

I am able to withdraw 48,750(75% of the value) on the LOC and requires monthly interest only payments on the extended balance, and is annually renewable. The rate is quarterly adjusting and is in the 4.75% range

I am going under contract on a 127,500 duplex today and need help with my strategy. It could use some updates, its in an up and coming "cool" area and should be able to rent for about $750 per side once updated. So around 150-160k ARV. For my repairs and updates I am estimating $12,500-15k.

I currently am going with a residential loan, using my LOC as 25% down(though could go to 20), 30 year, 3.5% to keep my monthly payment lower. Also would be using the LOC for the repairs.

I could also go commercial in my LLC with the same lender as my LOC (using my current duplex as collateral) at a similar rate, 5 year balloon, 25% down and amortized over 20 years. I could refinance it out, cash out and do it again, but it would be under my LLC and I'm not sure how to get a residential mortgage on it at that point.

I am stuck on how to proceed? I don't need the cashflow but it wouldn't hurt. I plan to buy and hold as long as it performs. 

You guys always have outside the box ways to go at these so let them fly!  (Hopefully, I included enough info to help with some different strategies) 

Nice article! I think I have decided to keep it and do a cash out loan. Yes it still should cash flow, not as much but right now I end up with around $400 per month after mgmt fees and saving for expenses. What should me next step be? This is where I’m confused, from my experience there are a lot of fees involved with a traditional cash out refinance, can I use a real estate attorney or someone to write up a note against the property?

Could I use an investor as a mortgage to save on the cost associated with a cash out refinance from a traditional bank or credit union? I am familiar with the BRRR but am a little blurry on the specificities. How much should I ideally try to get back out? I know getting all your down payment back out is usually the goal but since I bought it with cash it's a little different.

I’m seeking some advice on a duplex I bought last year. I’m trying to figure out how to get some money back out. I paid 30k cash, put 6k into it. It’s now worth 50k. Both sides are currently rented for $400 a side. It’s cash flowing nicely and is in an lower middle class area. I have a investor interested in it as either taking a mortgage on it or buying into it. Should I take a loan/mortgage from him at a certain percentage and buy another property or sell half to him and get 25k out of it and still own half? I am leaning towards selling half that way I can have someone to share expenses and still have most my equity. Let me know what you guys think is the better option. I plan do buy another rental with the money.

@Account Closed thanks! This is exactly what I was trying to find. So the proof of funds to make the offer will need to come from my private money lender correct? I will be putting 10k as a down payment. Does it still work the same? 

Hi, I’ve got a deal lined up but am confused about the final funding. I have a private money lender(family member) that is going to fund the deal. The problem I’m running into is how to have the funds applied and still have the property in my name? If they wire me the money aren’t there tax implications? I’m getting conflicting advice and was having trouble finding an exact answer in the forums.

Sorry I haven't been active here but I did it! First rental in 2017! We did it by buying our new house and keeping the old one as a rental. 

Thanks @Umar Javaid and @Joseph O. for the welcome comments! 

My name is Justin and I'm located in Highland Village, TX. I'm new to real estate on my own and have previous experience working on remodels and rentals that a family member owned. I am looking to buy a buy and hold in the near future in north Texas. I am hesitant to pull the trigger due to my lack of knowledge on funding sources. I hope to find more info here and by the end of 2017 buy a rental.