All Forum Posts by: Luke Crouterfield
Luke Crouterfield has started 1 posts and replied 7 times.
Post: How do I start with 220K?
- Posts 7
- Votes 3
This has all been helpful! I appreciate all the feedback. I'm going to take my time until I find a deal that is a no brainer. In the meantime, I'm going to connect with some lenders to learn more about what my hard money and DSCR options are.
Post: How do I start with 220K?
- Posts 7
- Votes 3
Quote from @Jake Baker:
Value Add BRRRR. It doesn't have to be a perfect BRRRR, but it seems like you have the funds and experience to execute the BRRRR, even if it is a small one.
I think you're right. Could you answer an easy question? What's the main reason you have to refinance instead of keeping the private loan? Is it because private loans are typically short-term? Or because private loans have very high APR? Thanks
Post: Property with no ground receptacles
- Posts 7
- Votes 3
Quote from @Josh Hall:
Quote from @Luke Crouterfield:
I have a 1950s brick rancher in Richmond. A lot of them have 14 gauge wire which might be worth replacing with 12 especially if you're going to be renting it
Hi Luke,
Did your property lack ground wiring, and did you choose to rewire it?
Mine does have ground wiring and 12 gauge. A previous owner must have done that before I bought it.
Post: How do I start with 220K?
- Posts 7
- Votes 3
Quote from @Mark Munson:
You can explore hard money options and DSCR loans, specifically. You can get up to 80% of the purchase price funded and only have to bring 20% down. Those loans only look at your credit score and whether the property is cash flowing. Essentially, as long as the debt service coverage ratio is 1 to 1 with your credit, you'll qualify. That means that whatever the sum of the Principal + Interest + Monthly Taxes + Monthly Insurance comes out to be, as long as the rental income exceeds that then it will qualify. Also, if you did want to fix and flip or fix to rent, those loans lend you up to 90% of the purchase price + 100% of the reba costs (never exceeding 75% of the ARV), you can explore that too, even if you are a newer investor. Feel free to reach out if you need any advice and you can find lenders by using the "Find a Lender" tab up top on BiggerPockets.
I have not looked into DSCR. I will do some research on it. From what I'm understanding, a DSCR loan is only possible if the house has a tenant in place and is cash flowing?
Thanks so much
Post: Looking to BRRRR my first property
- Posts 7
- Votes 3
Quote from @River Sava:
Hey Deane!
If interested, I can send over some info that I have personally found helpful when jumping into BRRRR-ing. Regardless, happy to connect!
Hi, River
If you don't mind, please send my way as well!
Post: How do I start with 220K?
- Posts 7
- Votes 3
Hello,
I'm looking to purchase my first rental. I have 220K to do it. Of course I could purchase a flipper with this cash and start from there. However, I'm not sure this is the best strategy to eventually be able to purchase a second rental as I won't have any cash left.
I don't think I could get a very large loan from the bank because I'm currently paying on a mortgage and don't have a lot of passive cash flow. With that said, I have about 170K left on the mortgage and my credit score is over 800. I plan to eventually rent this house as well. I purchased it a few years ago thinking it could make a good rental one day.
Any thoughts on a strategy that would best set me up to eventually purchase a second rental (third counting my current residence) would be appreciated.
Post: Property with no ground receptacles
- Posts 7
- Votes 3
I have a 1950s brick rancher in Richmond. A lot of them have 14 gauge wire which might be worth replacing with 12 especially if you're going to be renting it