All Forum Posts by: Michael Doherty

@Gregory DeRosso where and when is this conference?

@Philip Calixto I see what your trying to say however, in your example like Jay said, that would never realistically happen. And if it did- let me know in what market haha. 

When you have a higher appraisal that you thought (good problem to have) you can just leave more equity in the deal (banks like that). Your terms will most likely be more favorable at 60-65% LTV vs the typical 70-75% LTV. By leaving more equity in the deal your Monthly P&I will be lower to get you closer to that '1%' rule.

@Susan Franke when I house hacked my first duplex I ran the numbers as if I wasn't living there and I think that's the best way to think about it. Will this property cash flow when I move out? To put that in perspective, I purchased my duplex for $185k with 3.5% down. My PITI is $1490 (including PMI Insurance) and I was getting $1300 from the other side. So essentially while I wasn't cash flowing $100 per door while living there- my 'rent' or the difference was only $200.

Now after moving out I have rented my unit for $950 and I am cash flowing $750 before repairs ect....  which to me is good. Hope this helps when you think about running your numbers. 

@Nick Farrell As someone who works in the industry, there's no reason why you shouldn't be up more than that given the type of market environment we are in. But as others have said, there's no way to tell unless we know the underlying funds or products you own. I would look closely at what products he has you invested in. Perhaps he labeled you as a more 'risky' client because of your age. If he simply invested you in the S&P 500 or and comparable index fund, check to makes sure he's not 'churning' the account.... buying and selling to generate a commission. This day and age a lot of advisers are 'fee based' meaning they charge 1% on AUM rather than 'Brokerage' and charging a fee on every purchase and sell. 

Bottom line: Ask him if he is fee based or brokerage. Then ask him to print out a list of your current holdings and look up the 'tickers'. You can do this for free on Morningstar and see a breakdown of the stocks or mutual funds and their recent performance. While it sucks you have to do this and it shouldn't be your job, its a good way to figure out whats going on.  

@Cirilo Villar I would suggest saving up more. While that 4k may get you a down payment on a cheap duplex in which you could house hack, you wont have enough for closing costs, repairs/reserves ect... and be financially strapped. Wait until you can save a little more and continuing educating yourself, networking and developing a plan. 

@Jesse East like others have said, if you refi in your personal name, you most likely will have to wait 6 months and can only refi up to 70% ltv. I am currently cash out refinancing my duplex into an LLC. I was able to find a lender (here on BP) that will lend to me for 75% cash out refi on the new appraisal @5.96% 30 year fixed for 2.25 pts.

@Mark Safrin thank you, makes sense. 

@Keyonte Summers even when your purchasing in an LLC?

@Stephanie P. hmmm... now you have me wondering what the best route is. I'd rather refi in the LLC it is in rather than in my personal. That coupled with the fact that most banks will only lend up to 70% ltv in your personal name vs the 75-80% i can get in an LLC. But if you think it will hinder me getting a primary residence in about 1-2 years I may switch it up.

@Caleb Heimsoth ya makes sense- but technically you can have an 'unlimited' amount of loans in LLC's vs 8-10 in your personal name right?

@Stephanie P. thank you. The only reason I am concerned is because I have not purchased my primary single fam house yet. So when I go to do this, I don't want my DTI to be negatively affected because I am tied to too many LLC's. However, with that said, I suppose if the LLC is profitable that would only help from a lending standpoint.

@Kyle J. Have you ever pulled someone's credit report prior to loaning to the LLC as they are the guarantor?

@Wayne Brooks thank you for the insight and response.