All Forum Posts by: Melanie Jones
Melanie Jones has started 4 posts and replied 14 times.
Post: Vacant rental property? Partnering with Nurse Travel Agencies.
- Rental Property Investor
- Birmingham, AL
- Posts 16
- Votes 3
Hey guys. So we’re in tough times right now. I love all things real estate but I’m a Registered Nurse first. I wanted to open the discussion on how landlords with vacant properties can help traveling nurses, respiratory therapist, etc. Which in return fills your property. Has anyone reached out to any nursing travel agencies to provide housing? Or are you marketing your property to health care workers? I know a lot of nurses who only get a couple days notice of an assignment. These assignments can range anywhere from 2-13 weeks. The one issue many have is they rather not stay in a hotel for 13 weeks. Anyone renting to Crisis workers and if so how is your experience with it thus far?
Post: Hard money to conventional loan
- Rental Property Investor
- Birmingham, AL
- Posts 16
- Votes 3
Originally posted by @Shaun Weekes:
Originally posted by @Melanie Jones:
@Shaun Weekes so Im doing buy and hold. DTI is about 15%. I'm a RN with steady income and have been employed for going on 5 years in my field. I have cash reserves of about 15,000 that was saved over a 6 month period doing overtime. My goal is to eventually have enough capital to use the Brrrr strategy using all cash for the purchase+rehab.
Are you looking to buy SFR's or 2 to 4 unit homes and what is the price range of homes you're looking at?
Right now SFR. I'm in Alabama so I'm able to buy a home for fairly cheap. I'm going the section 8 route seeing the returns are nice. My price range is all in is 50k-70k.
Post: Hard money to conventional loan
- Rental Property Investor
- Birmingham, AL
- Posts 16
- Votes 3
@Shaun Weekes so Im doing buy and hold. DTI is about 15%. I'm a RN with steady income and have been employed for going on 5 years in my field. I have cash reserves of about 15,000 that was saved over a 6 month period doing overtime. My goal is to eventually have enough capital to use the Brrrr strategy using all cash for the purchase+rehab.
Post: Hard money to conventional loan
- Rental Property Investor
- Birmingham, AL
- Posts 16
- Votes 3
Originally posted by @Caleb Jordan:
Originally posted by @Melanie Jones:
Originally posted by @Caleb Jordan:
Originally posted by @Melanie Jones:
So I'm working everything out to get started investing. I've heard it's best to work backwards. I'm looking to do a hard money loan and do a cash out refinance with a conventional loan in 6 months or so to repay the HML. When approaching the bank to get pre-approved(First), should I let them know that the initial capital is coming from a HML or do they even care?
Cash out can work when you've added a lot of value to the property, there has to be enough equity for there to actually be cash to pull out. The fact that it is hard money loan does not really matter, all refinances are paying off the other lender whether it is a bank or hard money lender When looking at a refi here are a few things to ask.
Is there a seasoning period? Some banks want you to have owned property for min 6 months or some time period.
Can bank count potential rental income on property if there is no tenant in place. Do they need any sort of rental history to count that?
How does your job, DTI fit into this refi?
If title is in LLC ( most hard money lenders want title in LLC) how will that affect things. (Also do you want to keep property in LLC, that may affect where you look for loans)
I have found a hard money lender that does not require the property to be under a LLC. My DTI is in good shape. Around 15%. I'm a Registered Nurse and have been so since 2015 with good income( 80k-90k). The banks I've talked to states that I would have to hold title for 6 months. I also have cash reserves in place. I've saved around 15,000 over a 6 month period.
So it sounds like you are asking good questions and getting things in order. There are some banks that don't need the 6 months seasoning, but the most important thing is that ahead of time you have some options opened and those questioned answered.
Ok great! Thanks for the advice.
Post: Hard money to conventional loan
- Rental Property Investor
- Birmingham, AL
- Posts 16
- Votes 3
Originally posted by @Greg Scott:
Melanie:
A HML and cash-out refi don't make sense together. First, your HML interest will be very high and second, you are unlikely to get any appreciation in 6 months.
A HML and a rate & term refi go well together. Borrow as much as you can up front, including rehab, and refi to a conventional loan ASAP. In this scenario, a bank won't care where your loan came from because you are not taking cash out at the refi.
Good luck
Does a cash out refinance still not make sense if I was all in with the HML at 65% (purchase + rehab)below ARV and when refinancing with a conventional loan in 6 months, the lender does 75%-80% of the new appraised value? I'm not looking to pull out much cash.
Post: Hard money to conventional loan
- Rental Property Investor
- Birmingham, AL
- Posts 16
- Votes 3
Originally posted by @Caleb Jordan:
Originally posted by @Melanie Jones:
So I'm working everything out to get started investing. I've heard it's best to work backwards. I'm looking to do a hard money loan and do a cash out refinance with a conventional loan in 6 months or so to repay the HML. When approaching the bank to get pre-approved(First), should I let them know that the initial capital is coming from a HML or do they even care?
Cash out can work when you've added a lot of value to the property, there has to be enough equity for there to actually be cash to pull out. The fact that it is hard money loan does not really matter, all refinances are paying off the other lender whether it is a bank or hard money lender When looking at a refi here are a few things to ask.
Is there a seasoning period? Some banks want you to have owned property for min 6 months or some time period.
Can bank count potential rental income on property if there is no tenant in place. Do they need any sort of rental history to count that?
How does your job, DTI fit into this refi?
If title is in LLC ( most hard money lenders want title in LLC) how will that affect things. (Also do you want to keep property in LLC, that may affect where you look for loans)
I have found a hard money lender that does not require the property to be under a LLC. My DTI is in good shape. Around 15%. I'm a Registered Nurse and have been so since 2015 with good income( 80k-90k). The banks I've talked to states that I would have to hold title for 6 months. I also have cash reserves in place. I've saved around 15,000 over a 6 month period.
Post: Hard money to conventional loan
- Rental Property Investor
- Birmingham, AL
- Posts 16
- Votes 3
So I'm working everything out to get started investing. I've heard it's best to work backwards. I'm looking to do a hard money loan and do a cash out refinance with a conventional loan in 6 months or so to repay the HML. When approaching the bank to get pre-approved(First), should I let them know that the initial capital is coming from a HML or do they even care?
Post: Multiple mortgages and Credit
- Rental Property Investor
- Birmingham, AL
- Posts 16
- Votes 3
So I’m coming close to buying my first property. I currently have excellent credit( greater than 750) and I’m concerned if having multiple mortgages will hurt my personal credit and my ability to continue to borrow. I have not established an llc yet since I don’t own anything as of now. I have also heard mixed review about an llc vs insurance. I’m planning on using the brrrr method so I’m hoping that I’m able to continue to place mortgages on properties that were bought using cash. Any advice would be great.
Post: Real estate agent and cheap homes
- Rental Property Investor
- Birmingham, AL
- Posts 16
- Votes 3
@Derrick E.
No, I appreciate the post. Nice to see when someone wants to see others win. And yeah these long days are exhausting but I know they’re worth it. And I’ll definitely take everything you mentioned into consideration. Good looking out.
Post: Real estate agent and cheap homes
- Rental Property Investor
- Birmingham, AL
- Posts 16
- Votes 3
Originally posted by @D.J. M.:
@Melanie Jones it is difficult to find, but look for agents who know about investing, usually they are investors themselves. Those are the agents you want to help you.
Great! Thanks!