All Forum Posts by: Ko Kashiwagi

I still see homerun BRRRRs with simple cosmetic upgrades from my clients time to time but definitely rarer than couple years back. Buying deep in the price is really key and it's more important than ever to run numbers conservatively.

Personally, I'm not obsessed over getting 100%+ of my money back if I'm putting less than what I  would've put in as a rental & go for appreciation, but everyone has different expectations. 

I know a few that would do 100/100 but the points are typically 3-5 points especially if it's somewhat institutional. Or a true small private lender that does 100% LTV

Hi Pricilla,

There is no down payment on a refinance (only for purchase) but you have to "leave equity" in the house when you refinance a house bought with cash.

When you do a cash out refinance, your closing costs will be subtracted out of the refinance loan, so no you do not come with any cash to the closing table.

Yes, you can use the cash out proceeds from the proceeds to buy another property.

Hi Jeffrey,

Most lenders do not offer a HELOC on investment properties and there are some programs on investment properties but they typically cap at 70% CLTV. Rates are typically 8-9%+ and it's underwritten based on personal income. If the blended rate is lower than refinancing and you don't need 75% LTV then it may make sense.

Hi Aqil,

Are you looking for a bridge or a long-term debt?

Hi Tim,

30 year fixed for 5+ units are available but just way more rare than 2-4 unit loans. Local banks tend to do 5-15 balloon and there are institutional programs for 30 year fixed but typically they require loan amounts of 200-300k+.

Hi Rohmah,

Out of BRRRR investor here as well.

Agents, lenders, contractors, PMs are your core! Each of those should know each other in a market as well.

One thing to be aware as an out of state investor is that there are unfortunately people out there to take advantage. One interesting tip I heard from a friend is they use a phone number with local area code.

Seasoning depends on a program. There are programs with low to even no seasoning.

With cash out refi's you're most likely looking at 75% LTV max for most programs and 80% for rate and term

Hi Joe,

I work with a lot of flippers and it just depends on how conservative you are. Some flippers I work with just gets a SOW from the contractors and some get inspection every single time.

Typically wholesalers won't allow inspection periods so you have to just trust the SOW or your contractor or your experience. If it's an easy cosmetic deal I wouldn't sweat over it too much as long as major items look good - plumbing, electrical, foundation, roof, HVAC, zoning, etc.

This is why for first timers it's a lot easier to go with on-market or off-market sourced with an agent than wholesalers. It takes a bit of experience and risk to be able to proceed without inspections.

If it's your first deal and especially on heavier rehabs, it makes a lot of sense to get inspection reports if you can. Better to lose $400 than buy a bad deal

As long as comps don't reflect those highly upgraded sidings most investors would go with the cheaper option if the purpose is to maximize benefits on the refinance. 16k for siding sounds high if it's a 1000-1500 sqft home