All Forum Posts by: Michael Doherty

@Lamont Marable how was working with Lima one? I am literally about to close on a house with them in 5 days. Why don't you refi into a commercial loan? There are plenty of banks that will underwrite a commercial loan for a 2-4 fam house if that's what you have. Albeit, you will have a higher rate but rates have come down recently.. maybe pay like 1-.75bp higher. And is your LTV over 70% or under 70% i think you wrote 2 different answers.

@DeWayne Counce Apologies if someone already said this but there was a great podcast a while back where the guest wasn't sure if he should sell his truck- but he decided to clean it, and put it for sale because why not and it's free to do so. The moral and point of that story is.... if your not sure where to get started just be proactive. Have a set market in mind, hire an agent, run comps, drive for dollars, go to meet ups, go see houses, make offers (all free to do). The only point in that whole process where you actually need money is when you get an offer accepted and it seems as though you already have the financing in order. 

From the standpoint of what strategy- I would ask yourself what your end goal is? If it is to acquire as many houses as possible and do REI full time... BRRRR will get you there quickest and cheapest because you can recycle your money.

Venmo app- free and extremely easy. You can have multiple bank accounts and direct which one you would like the funds to go into. I personally walk my tenants who are not using Venmo how to use. 

Hi all,

I am currently under contract on a house that will be my first BRRRR. I am currently shopping around for the Refi part of the process. I am trying to decide whether or not to refi into a conventional loan or commercial.

Background story: Currently own 1 duplex in my personal name (FHA loan @3.65% 30 year fixed). I also own another duplex- Commercial loan in the name of my LLC- 20 year amortization, 5/5 arm @5.75%.

I am under contract to purchase the property in my LLC with hard money lender. After shopping around a bit I could refi into a commercial loan with the LLC at 20 year amortization, 5/5 arm @5.75% 1 POINT, NO SEASONING.

Or I could refi into personal name for a 10/10ARM @3.875% NO POINTS, 6 Month seasoning. 

Question: Would you take the lower cost route save about 1%, have higher cash flow but it be on your credit ect. I have heard you can get up to 6-8 loans in your personal name.... not sure if it is advantageous or not to do that. Or would you just keep purchasing in the name of the LLC for liability reasons ect. Thanks for all the input.

@Melanie Kent bought my first duplex at 23- and house hacked (2017). Friends thought I was dumb/stupid and throwing away my money. Saved though my W2 job, read a ton, learned a lot, asked questions, networked all of 2018. Closed on my second duplex (Jan 2019), plan to close in April first on my first BRRR (3rd duplex).

House hacking has 100% been the best way to grow and save my income. Network and read like crazy, and just take action. I've learned more by doing than any 4 years of college undergrad has taught. 

@Mat O'Grady Stephanie P. is right about comps- may be a challenge for that specific property. Might be worth getting a commercial (income) appraisal based off the income of the property. Rather than finding similar 1 +3 single lot properties using the sales market approach.  

@Tom S. 100% agree with you that interest only is much simpler and easy to draw up however, with this not being value add deal I don't suspect there will be enough equity to refi and pay off the debt (50k). I suppose you could just keep putting away the money each month away as if you had to make monthly principal and interest payments. That way at the end, all your are left with is just principal to pay back but you saved each month for it so it's not such a burden. 

Hi all,

I am in the process of raising capital to fund the down payment portion of a seller financed deal. Without getting into too many specifics, I am looking to raise 50k. The property is not a value add but is a buy and hold... great location, cash cow, off market ect. 

There are many ways to amortize the debt but, I am looking for suggestions on what people may have done in the past that has worked well? After speaking with a few private investors who are interested, I have ended up somewhere in the range of either 10k note @10% IRR amortized over 24 months. Another option is 10k note @15% amortized over 24 month which is obviously more advantageous. I appreciate all the suggestions- thanks in advance.

So to your point @Robert Biggerstaff all 11 of your units are single family homes in the C-D class neighborhoods? 

Hi all,

I currently have two duplex's in what I would call class C to C+ neighborhoods. My main objective is cash flow for passive income and to eventually live off this. I am comfortable managing these units myself as but as I start to see where the real cash flow is- it's evident the cash flow is better in Class C- to D neighborhoods. I have stayed away from these areas as I would not want to manage them myself. But thinking more and more about it- it makes sense to buy 1-2 of these 'cash cows'  and hire out a PM. Who here has one or more of these types of properties in their portfolio to generate significant cash flow in addition to other A,B and C houses you manage yourself? 

Appreciate all the insights.