All Forum Posts by: Ko Kashiwagi

Hi Nick,

Unless it's a rate/term refinance, 80% LTV is not common in refinances. For cash out refinances, 75% is the max for most lenders.

Hi Hai,

It would be a good idea to start on the rehab earlier and to also consider a way to get the tenants out earlier. It would also depend on how much the rent will increase after the lease. If rehabbing the property will significantly increase the value it would be worth escalating the rehab.

Hey Jordan,

As many have commented, DSCR refinancing would be the way to go. As long as your credit and the DSCR ratio (rent/PITI) qualifies, you should be good to go.

Hi Tanya,

It's important you get the right contractor that understands the needs of investors. There is a major difference between contractor that work on retail homes vs contractors that work on investment properties. Investment properties need contractors that understands the scope of getting work done at a cost-effective price while meeting market needs. A good way to understand what kind of rehabs to make is to look at other investment properties in the area. Are they using wood, vinyl or carpet? Are they using quartz, concrete or marble countertops?

Hi Craig,

If you own a majority of the LLC and you are the personal guarantor of the loans, lenders will likely include the LLC owned properties in your DTI calculations. This could make you run into issues for getting conventional financing and HELOCs. If you DTI (including the LLC owned property) is above 50%, you may want to consider tapping into equity through refinancing.

Hi Cory,

Given the minimal amount of effort to file for a LLC and the relatively low cost, I don't think it would hurt to get a LLC. Drafting an operating agreement and putting formality is really important was there are risks in partnerships. Now a days you don't even need an attorney to create an LLC, as there are services like Zen Business and Legal Zoom.

Hi Maria,

You can get an umbrella policy or landlord insurance to protect yourself. Also, there are options out there for lending through an LLC such as DSCR financing. Happy to connect!

Hi Staci,

If you don't have any plans on working as an agent for other clients, I would recommend a flat-fee broker with no commission split.

Hi Ian,

Yes, rates may come down, but in that case you can refinance and get a better rate. If you buy now and rates have come down in 1-2 years, your property value would have also likely appreciated as values rise when rates come down in general.

In regards to your point in cash flow – I agree if immediate cash flow is what you care about the most. Indeed you would have to put more time into searching and managing properties and it would not make sense if you do not have the time for it. Nonetheless, I don't think it would hurt to start searching and making offers if you find spare time. Perhaps you can make slightly aggressive offers that would make a really good deal.

In the short run, holding is easier and better. In the long run, I don't think you would regret buying more. Every long time investors have told me they wished they bought more when they were younger.

Hi Yechiel,

What are you top priorities and goals? Cash flow, appreciation, stability...? Columbus has really good outlook on appreciation. I also come across a lot of investors acquiring great cash flow deals in Cleveland and Cincinnati.