All Forum Posts by: Michael Garcia

Has anyone ever done separate meters on a multi family in the city?

@Martez Bynum Plenty of people are doing them just keep in mind that it’s 75% LTV for a single family and 70% for a multi. Unless you can find a portfolio lender who can do more then that. In that case let me know who they are :) also rates today for one of these is at least 5.5%.

From what I understand you have to wait 6 months after initial purchase before you can cash out refi on a conventional loan. Those are Fannie & Freddie rules. But there are different rules for comercial and other loans. 

Cracks in sidewalk are considered a tripping hazards in chicago but what about a crack in the driveway? Anybody have experience with this?

I'm being told that Fannie May rules don't allow a cash out refi that allows ARV till you own the property for 6 months. Also, is 5.1% a good rate for an investment duplex?

Seven Months Later... I believe the answer is to never let someone like this move in. Why? Well this guy moved in and payed 3 months rent on time. I thought everything was good till he moved out and left his girlfriend in the property. At the time I was on Paternity leave and wasn't in a position to loose the rent. Plus, loose lawyers fees to evict his girlfriend, who was mentioned in the lease as an occupant, so when she offered to pay $1200 of the $1500 rent I reluctantly accepted. But accepted all the same. She decided not to pay this month and now I'm going to have to evict her. Oh happy day LOL. This goes to the newbies. Listen to the experianced investors. It always pays off. It's better to struggle and have an empty unit then to put the wrong person into your building. A lesson I won't forget. I was entitled to the whole security and lost rent but it was not worth having someone with low integrity in my building. I should've came up with the amount of money that would've kept him from moving in but allowed me to keep him from moving in even if that amount was nothing. Funny I asked this question 7 months ago but was too busy to read all the great answers that came from it. Thanks to all that replied. Great advise.

Hey thanks for the replies. I get approached all the time about it and I wasn't sure how most people handle it. I've been trying to get a hold of some flippers to see what they typically do for expenses and their tax strategies but it doesn't seem like a good idea to have all your labor under the table and not be able to expense anything right. Just trying to figure out how I'm going to do my first flip.

??

When doing a flip, what are the pro's and con's of paying under the table. Do the benefits outweigh the risk? What do you do on your flip/rehabs/rentals? Why?

Awesome book, plus it's free and is a great introduction to several avenues you can take in the BEST GAME EVER!!!! Real Estate!! Plus it's FREE man. Good stuff.