All Forum Posts by: Kyle Shankin

Hi @WilliamRoberts. It looks like you're purchasing and rehabbing with cash and you're all-in at $86,000. If you can refinance at $101,200, I have you at $14,000: $101,200 - $86,000 - $1,200 (closing fees).

A few other things that I noticed that you may want to take another look at:

• You're refinancing for $101,200 which is 72% LTV of what you're valuing the property at. I'm not saying that's not possible, but 70% is more likely in my experience.
• You've put 2 months as your refinance time. Typically you need to let the property 'season' on the market for 6 months (again, just in my experience), before you can refinance. 
• I get closer to 5.5% interest rates in my area right now, you might get 5% for your area or if you're living in the property.  Just another thing to check
• And then the biggest issue that I see is that you only have Water&Sewer, property taxes and insurance listed. I'm assuming this is not vacant land since you listed a 2 month rehab period. If this is a duplex, SFH, etc. you'd also want to make sure you're putting aside a percentage for vacancy, repairs, capEx and management.

 That's some great insight. Thanks for the tip!

Thanks Victor, that makes sense. I was only asking because the initial question was about a property that is already part of OP's portfolio. Whether or not to replace a roof is a key question for me right now as I'm looking for houses to BRRRR and the roof is just one of those large expenses. I'd imagine it's tough to negotiate a new roof when I'm already offering the seller (in their eyes) way below market rate.

Hey @Joe Villeneuve, does this mean that the roof adds a significant value to an appraisal, where an investor could refinance for a higher amount?

@Greg Carrier sorry about this hard time and thanks for sharing it with the community. I'm not familiar with tax sales, so this was an interesting read.

welcome @Robert Jurado, hope to see you around!

Use an attorney @Jeyo Punnakottil. Filling out the forms and filing them seems easy, but you really want to make sure that the LLC is setup in a manner that both you and your partner agree on.

When I did my refinance, I used Matt Trabucchi with First Independence bank - Mtrabucchi{at}firstindependence{dot}com. I had a really good experience with him, he worked hard and was very clear about what he needed and how the process works. 

However, one thing I want to point out is that you're likely going to have to pay 2,000-3,500 in fees when refinancing, no matter who you go through. My understanding is that a HELOC has no fees. But again, you'd have to actually live in the property as your primary residence for that loan.

Sounds like you already have some good advice on here @Alex Porrett. I just wanted to chime in with my recent experience in refinancing a house. While searching for loan options, I was told that you cannot take a HELOC on a house that is not your primary residence.

@Russell Brazil first off, thank you for all of that knowledge. Now onto the part of your response that made me spit out my coffee, fined $100,000 for asking where a client is from!? What rule did they break by asking that question?

Do you mind sharing a ballpark of what an annual cost of all of those fees? I would imagine that, with enough volume, even a few thousand dollars could be considered as the cost of doing business.

This certainly gives me a lot to think about.