All Forum Posts by: Alipate Moleni

@Emma Powell So yeah I did actually end up going with PenFed. I tried a couple other Banks but they offered the best rates and terms by far, got 80% LTV, prime plus 1.5. 10 yr draw. Thanks for mentioning them!

@Wendy Smith the reason I went with the 15% rather than 20% down is because I'm trying buy more properties with the cash I have on hand (3 properties rather just 2). Also, Less down=higher cash on cash ROI... usually. I bought the first below market value, I Plan to buy the other 2 the same way soon. I will refinance on all 3 to a 80% to 75% LTV loan in a few years and will likely get most of the cash back.

@Wendy Smith that’s about what I just got for a similar size loan, had to pay a few points to get it down to 5.25% rate, don’t remember exactly how many...

Noob buy and hold investor reaching out to any real estate investors, investor friendly agents, rehab contractors, whole sailers or portfolio lenders on the big island (east side) who want to connect. Shoot me a DM 🤙🏾!!!

@Will Fraser oh ok, that makes sense. One more question: You said refi appraisers have the luxury of looking at the purchase appraisal... How much does the purchase appraisal influence a refi appraisal?

The reason I ask is because I'm about to purchase a property that just appraised way lower than I had hoped and was planning on doing a refi on that property in the near future. Frankly I would rather the refi appraiser not even look at the purchase appraisal. Thanks!

Is there a difference between the way an appraiser appraises a home for cash out refi or HELOC and the way he appraises a home for purchase?

My experience: I'm on my 3rd property purchase and have done one cash out refinance and one HELOC. I've noticed that the appraisals for my home purchases have been super thorough and have come in lower than expected. Conversely, I've noticed that the appraisals for my refi and HELOC haven't been as thorough and have come in higher than expected. In fact, for the refi appraisal the appraiser only took a few steps inside the home and for the HELOC the appraiser didn't even see the home.

Is there a difference or is it just me?

@Thomas M. Totally agree with you, no one knows! I'm in a similar position (not with a $2M property though mind you). I'm about to close on a duplex, I had been going back and forth on whether I should pull out or go through with it. I have allowed the uneducated opinion of some friends, who say I'd be crazy to close, influence me way too much. I was reminded by my wife to keep a long term perspective and the bottom line is that the numbers make sense long term.

Ok so Im finally about to close on a $115k HELOC, and on top of that I have about 30k of my own cash ready. So my guns are just about loaded and I originally had my sights set on a BRRRR strategy with a focus on 3/2 SFR. In the area I will be investing in the average ARV for a 3/2 is between 165k and 240k. I was planning on going with sec 8 in which market rents for a 3/2 is $1600... This was my plan and then my friend tells me I can build a 3/2 for $150k (permits and all). There are many 1/4 acre lots available for as low as 10k + price to clear is about 10k. Add to that 5k closing and misc costs and your all in for about 175k to 185k. The value for brand new 3/2's here are between 220k to 240k. I'm thinking I could rent out a brand new house to get a top tenant, refinance 80% to 75% LTV to get all or almost all of my money back and then do it again... This is what I call the BRRR, with only 3 R's because there is no rehab... or I guess you could call it the BuildRRR or the BuRRR or whatever...

I want to know what you guys think? What are the pros and cons you've experienced in building investment properties? Which strategy do you think I should choose: BRRRR or BuRRR and why? Any and all comments are appreciated 👍😊👍!

@Spencer Cornelia interesting... However, How would I qualify for a 612k loan amount? Even with the 30% down? Portfolio lender maybe? And, some more info... he doesn't want to seller finance because he wants the lump sum now (to build a new house). He's selling now because he's coming up on the "lived in it for 2 of the last 5 yrs" dead line and he wants to avoid the capital gains tax. Also, why would he agree to a no interest loan? Anyway, to tell you the truth, after taking a closer look at the property and the layout, I have become uninterested in this "deal" lol. Thanks so much for chiming in though.

@Spencer Cornelia well... The sellers current mortgage is only $2300, last yrs taxes for the house were $2400. he only owes 300k on it, the tax value is about 875k, BUT!.. I just asked and he said he would not consider seller financing :(