All Forum Posts by: Matt Holley

Thank you. I do not have a penalty for prepaying the mortgage. I also think my broker, who I like and plan on using for future transactions, doesn't get paid until the loan reaches that 6 month mark. Thanks again for the response!

I am closing on my first rental in two weeks. It is a single family middle unit townhome. Total mortgage payment (including taxes and insurance) will be approx. $1,850.00, the rent goes for $2,400-$2,500 a month, and the tenants pay for utilities. The property just appraised for 30k more than I am paying for it. I want to take some of my initial investment out so that I can reinvest it in the purchase of another property in the same area. I also would like to move the Deed to my LLC.

Question 1:

Should I do a cash out refinance or apply for a second loan on the property to get back $40,000 of my initial investment? I have a rate of 6.875% now but it is in my name and not the LLC.

Question 2:

Should I make my LLC the landlord on the lease, and how long should I wait to transfer the property to the LLC?

The two questions might be answered with one "Wait 6 months to establish the income from the lease and then do a cash out refinance as long as your cash flow from the property is still positive with the new mortgage payment." (That is what I think the answer is but I legit have no idea)

Thanking you in advance for any assistance!