All Forum Posts by: Larry Turowski

@Catherine C. You'll need to buy as yourself to get an FHA or conventional loan. The LLC is not going to useful in this situation.

Kudos to you then!  I look forward to hearing from you again!

@Account Closed Congrats on getting started!  Obviously you are not going to lose everything you invested, maybe a small percentage.  But you've learned a lot.  That is worth it.  It is very difficult to flip low value properties because the margins are so tiny.  But maybe you'll become the expert at it!

@Timothy Doenges Keep calling.  Try small local banks and credit unions.  Some will have $50K as their cutoff.  As another alternative, buy another property so that the value of the two together totals more than $75K (should be pretty easy), and get a blanket mortgage which covers both properties.  Call around first and find the lender who will do a blanket mortgage.

@Gabriel Rodriguez Refinancing means you are completely replacing your original financing, whether that be your own cash or a hard money lender or a previous mortgage with a bank.  

So you either need to buy at a good enough price that the refi at 80% completely pays off your previous financing or have enough cash to make up the difference.  

In your case (you left out incidentals, and I'll leave them out too), you'll be into this hypothetical property for $120K, will get $108K from the refi, so you'll need to come up with $12K to pay off your original financing (or for an investor who bought with cash, they'd leave $12K of their cash in the deal).

@Nestor Maldonado Your question is basically, how do I do this?  Show some effort.  Read a lot, find out what you can on your own, and then come back and ask a more specific question.

@Henry Kicera I would forget the LLC and just make sure you have good insurance. But that said, let's hear why you want to buy as an LLC? How are you financing? If as an LLC, that is a whole different deal than as an individual.

@Alma Laque Your home is not your business.  While your feelings shouldn't be the only determinant, they absolutely matter when it comes to your home.  That is great that it appreciated!  You have to have a reason to sell.  If it is just to cash out that is not enough of a reason.  What are you going to do with that money?  Where are you going to live?

900 for mortgage, taxes and insurance?  That still does not account for vacancy, repairs (materials in your case), capital expenditures (These are big ticket items that are infrequent, but which you should amortize.  For instance a $3k furnace that lasts 20 years costs $12.50/mo.), holding costs while not rented, gas in your vehicle and other incidentals.

This will be a break-even property, cash flow wise.  You will be gaining equity, and you may experience appreciation.

@Account Closed Everybody has their own criteria.  But that is not a deal I would do.  Unless you are putting a huge sum down I have a hard time believing that will cash flow 300-400/mo.  How did you calculate that?