All Forum Posts by: Michael Doherty

I am not only looking in Waterford. I grew up 2 streets away from that house and know the area very well which is why I was inquiring. Let me know if you have any more houses for sale- thanks! 

@Patricia Mangham still for sale? 

@Chris Mason @Will Gaston @Richard Sherman @Peter Tverdov all good information, thank you. I'll be honest, some of the info is over my head, but as it relates to the pre payment penalty. If I am a buy and hold investor which I plan to be with this specific property, why does a pre payment penalty really matter? All the bank is doing is ensuring they get their interest for a min of 5 years. I don't see myself having the capital to pay off the note in anything less than 5 years. And even after the 5 years is up and I decide to refi or sell, I will not be penalized. 

@Chris Mason can you explain re-cast more? Not quite sure what you mean by this. Again new to commercial lending so trying to absorb as much info as possible. Also there is a pre-payment penalty- 5% 1st year 4% 2nd year ect. Thanks 

Hi all,

Was recently offered a commercial mortgage with the following terms. 

Interest Rate: 5.75%

Repayment Schedule: 20 years

Maturity/Term: 5 years

Prepayment penalty: 5,4,3,2,1

Index Value FHLB plus a 2.5% margin. 

20% down payment

This doesn't seem terrible however, as we go into a rising rate environment I am a little hesitant on the ARM every 5 years. I've never done a commercial loan before. What are my options if rates keep ticking up and 5 years from now they are to the point where it completely diminishes cash flow? Am I able to refi into another commercial mortgage or would I be left to sell?

Thanks,

@Jennifer Rysdam right now I am house hacking a duplex which I purchased in my name. The duplex I'm closing on in December is though a commercial loan and will be purchased in an LLC. So for tax purposes maybe open another account?

@Nathan Gesner Thanks for the input- what software do you use to track the income/expenses if you don't mind me asking? 

@Bob B. By separate accounts do you mean separate savings accounts for each property for security deposits? And is the bank different from your personal bank/accounts? 

Hi all,

I am closing on my 2nd duplex in December and want to stay organized. Curious to see how people stay organized from a financial standpoint with tenant security deposits and separate banking accounts. 

Right now I have 1 bank with a checking and 2 savings accounts set up. I have a checking/savings account for personal use which I deposit rent money in and a separate savings account for tenant security deposits only. 

Do people have separate savings accounts or banking accounts for each property they own? Or do you just keep all your tenants security deposits in one savings account? I am not sure if I should get a second bank for just a 'rental business' purpose or not (seems excessive for 2 properties). Appreciate any insights! 

Hi all,

I will be closing on a duplex in about a month. There is currently only 1 furnace for 2 units and the owner pays for heat (Natural Gas). Each unit is relatively small around 750 square feet but I would like to have some control as to how high tenants can set the heat. In your experience, what are some good reliable brands that I can seek out to install after I close? I am looking for something that is both easy to install and won't break the bank. 

Thanks,