All Forum Posts by: Michael Doherty

I am refinancing a BRRRR that is nearly complete. I purchased in an existing LLC I had and would like to close in the same one. I always thought that closing in an LLC meant that it wouldn't go against your personal DTI or credit. I am getting mixed answers from various lenders/ seasoned investors. Perhaps it's the underlying loan product that makes the difference. Does anyone have any more clarity on this?

For clarification, I want to close in an LLC but DO Not want it to affect my personal DTI or credit. Thank you.

@Daniel Lynch I recently just moved out of my duplex (house hack) with my gf and I only made her pay me the difference in rent. 

For example my PITI was $1350 the first year and I had $1300 coming in... That year she lived for free. Last year my taxes went up and my PITI was $1500. I made her split the 200 with me plus utilities of course.

Ironically, we just moved into her 3 fam she bought (house hacking again) and she is only charging me the the difference. Luckily I should only owe $25 bucks a month....

My 2 cents is.... just split whatever the difference is in rent, that way it's fair and it will still be cheaper for her than paying traditional rent. 

Hi all,

I purchased a property a month ago with the intent to BRRRR. The renovations are almost complete and the numbers point to a higher arv than I intended (good problem to have). My long term goal is buy and hold but I have come to a point where maybe it makes sense to sell and use the money to fund something bigger. Would like your input. The numbers:

Purchase Price: $118.5k Hard Money 

Rehab: 30k

ARV: 218k

Down payment: 10% of purchase and 10% of rehab

Total Invested funds w/ closing: 24k

Holding costs: 1700

Hard Money payoff: 134k

REFI Option:

75% cash out refi of 220k= 165k loan, 30 yr fixed @ 6% and 2pts

PITI: $1500

Gross Rental Income: $2600

Monthly Cash flow after expenses: 750

If I decide to sell I will need to spend 5800 to paint the exterior but based on comps I could confidently sell for 220-230k. Total Potential profit is 86k before taxes, fees, closing costs. 

Perhaps this is a no brainier to some, maybe I am missing something? Again, long term goal is buy and hold but when faced with a decent profit, maybe the prudent decision is to sell and buy a larger Multi? Thanks for the help. 

I use BSP insurance. Investor Friendly agency, know's exactly what you'll need- in process of doing a renovation right now with them. $1700 for 12 months got me general liability, builders risk ect..... . I will get reimbursed the difference once renovations are complete and I get general Homeowners insurance. 

@Daniel Green I am currently doing a cash out refi on s duplex as well. The best terms I found (so far) are from a lender here on BP.

Let me know if you want his contact information. 

30 yr fixed

6.25 @80% ltv or 6% @75% ltv

2 pts to close

30 day seasoning from date of purchase

Can close in LLC

@Matthew John I have a duplex with 1 furnace (gas) for both units as well. I solve this problem by including heat in the rent and they pay for their own hot water and electric bill. As many have suggested it really is the best way to handle this situation. If your tenants are month to month I would re-write your lease and switch the heat into your name and charge $50 extra a month per unit and include heat. 

@Sandeep Singh apologies I just saw this- introductions start at 7 then it’s open discussion. I was not able to make it this week but I hope to be there next month

The Meeting will be at Chili's in Glatonbury (2855 Main St). The meeting is in the dining room to the left of the bar. Everyone is welcome from newbies to the seasoned investor. To get the most of the meeting come prepared to share your experience, what your're looking for and what you can contribute. 

@Sandeep Singh there’s one in Glastonbury the 3rd Wednesday of every month that usually has a good showing you may be interested in! 

@Aidan Mulligan I currently do all my own landscaping. I only own 3 properties that are max 15 miles from each other but it allows me the opportunity to save money and 'check in' on the property itself. I always tell my tenants in advance before I come over. I hire out for snow removal however. 

I think depending on how far you are away from your properties and if you are in the beginning stages and it's manageable from a time standpoint it makes sense to do it yourself.