All Forum Posts by: Mo Nelson
Mo Nelson has started 3 posts and replied 8 times.
Post: Cash out REFI or BRRR with hard money
- Boston, MA
- Posts 8
- Votes 0
Originally posted by @Jason Hirko:
@Mo Nelson When interest rates are rising (like they are now), get the long-term loan now and short term loans later down the road. Lock in that good rate now on the refi, and then use all that cash as down payments to fund your short term ventures
Makes so much sense Jason - Thank you for your input. Glad that I sought some advice on this.
Thanks again!
Post: Cash out REFI or BRRR with hard money
- Boston, MA
- Posts 8
- Votes 0
Originally posted by @Nick C.:
I would agree with Arturo above. Your 2nd scenario has too many variables, you'll be paying fees and lender costs twice, as well as higher interest on the hard money loan. Also what if you don't get the refi you were looking for, what if the market adjusts, a lot can happen from the beginning of a project to the end.
Thanks Nick! I didn't even consider possibly not being able to make the refi happen after the project is done. Tons of good points. Cashing out now seems like the safest option.
Post: Cash out REFI or BRRR with hard money
- Boston, MA
- Posts 8
- Votes 0
Originally posted by @Arturo Smith:
I would say ash out refi, pay the loan back on the refi. Then you have the rest of the money to invest in other properties while still owning that original property, and receiving rental income.
Thank you Arturo!
Post: Cash out REFI or BRRR with hard money
- Boston, MA
- Posts 8
- Votes 0
Story - My aunt and I own a vacant free and clear Triplex. I am getting ready to buy her out so that I can rehab the property and rent it out. This will be around a $80K rehab, I will be buying her out for $40K and the current appraised value of the property is $325K. After all repairs and occupying I anticipate the property being valued somewhere around $450-$500K.
I am currently trying to decide what would be the best move. Cash out REFI where I will be able to take out about $225K, pay the buyout and rehab and then roll the rest into another property? Or should I use hard money to close the deal and do the rehab and then Cash out REFI later when the value will be around $450K?
Any ideas at which would be smartest?
Post: Rental property renovation questions
- Boston, MA
- Posts 8
- Votes 0
I wouldn't base your remodel off of that one tenant. Also, you may not want to rent to tenants with pets after you have just renovated.
Post: Trying to do the BRRRR strategy. HELP!!
- Boston, MA
- Posts 8
- Votes 0
I am a joint owner with my aunt on a tri-plex property in Lawrence, Ma that my grandmother has left us FREE AND CLEAR! My aunt is looking to be bought out so that she can take her money and go. The property is in poor condition needing major repairs (roof, siding, some plumbing, electrical, asbestos removal and much more). I qualify for enough money to rehab property and hopefully buy her out. I am estimating the rehab cost be about 150k. The bank has told me that a conventional re-finance would be best so that I can pull out 80% or less of the estimated value after repairs to cover the buyout as well as the rehab. I don't plan on using 80%. If I re-finance now to do the buy out and rehab will I not be able to do it in the future using the BRRRR strategy? I would like to do the full Buy, Rehab, Rent Re-finance, and Repeat. Am I missing something by re-financing before rehab and renting?
I hope that I'm clear. Thank you.
@Adam Petterson Thanks Adam! This really does help out with my situation.
I recently graduated and have been working as a Junior Estimator for about 8 months. I just qualified for 300k FHA loan, so I have been looking for multi-family rental properties. I'm excited to get started but... I'm also inheriting a house fairly soon (3-6 months). I was initially the only person on the deed but now my grandmother has added my aunt onto the house (who wants to sell, I do not). This is a triplex that is paid off in full. This house need quite a bit of work but once fixed would most likely sell for 350k. I want to get started with investing but am not sure if I should wait to figure out what is going to happen with my aunt and see how much she is looking for to be bought out.. Should I just start now and deal with this later or wait it out?