All Forum Posts by: Kristofer Koons

@Lorraine Martin Commercial loans won't really reduce liability unless it is a non-recourse loan. Commercial will allow you to close in an LLC. With a conventional loan you can close in your personal name and as long as your lender is okay then you can do a quitclaim deed and transfer to an llc. As far as reducing liability goes are you looking in the lines of financial liability or more along the lines of asset protection?

Congrats on taking the plunge! As for the math goes I can do a full breakdown if you would like but to keep it concise it looks like you would leave about $20k into the property after refinancing once the rehab is completed. So not a "perfect" BRRRR, but still leaving less money into the property than a typical 20% down conventional

Hey there, 
I will answer your question with how I interpret it and feel free to correct me my interpretation is wrong. I will give an example using your numbers.

Scenario 1

Lets say you have a retirement account with $100k and your interest is 15% and that gets compounded annually. We will look at this for a period of 10 years. Your total balance at the end of 10 years would be $404,556

Scenario 2

Lets say that you have two retirement accounts with $50k each, (this is where i'm not sure what you mean by the total interest rates) and if each of these accounts have 7.5% interest rates. At the end of 10 years the total of these accounts would be $206,104 or two accounts of $103,052

The reason the math doesn't work out the same on this as it does on scenario 1 is because you're essentially compounding your $100k by 7.5% instead of 15%

TLDR 7.5%+7.5% doesn't = 15% in terms of compounding interest

I've used CrossCountry mortgage for a duplex refinance, they are able to do 75% LTV and I can send you my loan officer's info if you want to message me. She is based out of Gahanna Oh and service the area. A local bank or credit union might be able to do 80% if they're a portfolio lender

For sure, I know most helocs are adjustable but they also have a cap too, so if the cap is around the same as the heloan to me it seems like a no brainer in favor of the heloc. Even with it being adjustable I love the flexibility that the helocs provide

Great question! I worked out the numbers for both and the HELOC would save you about $70K assuming that it is a fixed rate of 4.625 with a 10 year draw and 20 year repayment period. This is directly comparing the HELOAN vs HELOC at 30 years with no additional payments and no refinances