All Forum Posts by: Mitchell Jaworski

@Wendy Lavana if they are making you take the line initially then just make one payment and then repay the line so it is open with a zero balance.  You'll just need to make an interest only payment.

Obviously check that they don't have any minimums or timeframes they are requiring. 

I have a HELOC on my primary that I use over and over to buy property and then repay when I cash out of the property. Only pay interest when I have it in use.

Any interest only calculator online can let you know what the payment will cost you.  Good luck!

@Mike Marino to jump in on this being I BRRRR alot. Yes, you should get a pre-approval from the hard money lender as proof of funds to go with your offer, atleast that is how I do it.

As for the refinance part, first make sure that the numbers work as a rental after you have refinanced it out, i.e, run the numbers using the loan amount you plan to take vs rents, expenses etc.  If you need a property calculator I have one you can use.

For the refinance loan I can tell you this, was much easier to get loans from banks (even local ones) when I had property in my own name and had a W2 job. Now I do everything in my LLC and am a full time investor and have to go with private lenders or some community banks (though they usually have extensive seasoning periods).

It is not a commercial loan, 5 units or more is where you get into commercial loans.

That is the key to the BRRR strategy, the refinance. I would talk to lenders so you have an idea of what you can qualify for. Ask about seasoning, ask what their requirements are. Any yes it will be a recourse loan.

@David Richman I was on a conf. call with about 12 agents today and they seem optimistic that there will be pent up demand after this (I think there will also be pent up supply).  Time will tell!

@Cody Harris and @David Richman welcome, we do an investor meetup at Gizzi's coffee in Delray the second Saturday of every month at 1pm (obviously not this month) it's a mix of new and experienced investors.  "Coffee with investors in Delray Beach" is the thread on BP.

Also, be sure to use a property calculator when analyzing deals.  I can send you mine if you need one.

@Otis Sanders yep, this is why I lean on my property calculator so much.  The numbers tell me where too and where not too investor.   I can find deals in SoFlo but it's few in between and takes alot of time.  I started going out of state.  If you need a property calculator let me know, can send you mine.

@Michael Lopez at the risk of sounding negative, good luck with that.  The areas you would be likely be comfortable living are priced where the numbers make no sense and the areas where they do are not very safe.  Occasionally you can find things off-market if you link up with some local wholesalers.

@Michael Lopez you may also want to look into a home equity line if credit (heloc) on your primary to tap that equity.  Then you do not need to do a full refinance (and all the costs involved) and you are only paying on the heloc when you use it.  Just another angle to look at along with the refinance.

As for the areas that you are looking, that is my neighborhood.  It is tough to find cash flowing properties right now, possible but difficult.  I have been looking up in Port Saint Lucie and even further north.

Your game plan is sound though in regard to the financials, just be sure properties that produce some cash flow.

Congrats man, that is some pretty cool stuff. I have never done a from scratch build, just alot of BRRRR on beat up existing structures. If you want to network with other investors we have a meetup in Delray Beach this saturday that 8th at Gizzi's coffee, starts at 1pm.

@Kate Hayes is this property for sale?

@Francesco Sacchi of late just about everyone is doing short-term rentals in delray as that's the way to make the numbers works given that prices are high. 

As for long-term rentals your going to see cash on cash returns similar to what you mentioned above.