All Forum Posts by: Account Closed

Hello, I have a 6x8 bathroom that has that common classic look that probably dates back to the 40s.

It's of my opinion this style lowers the perceived value of the house.

Do you have suggestions on how I can class this up a for 3k?

Any examples you recommend?

Thank you for your time and experience. I appreciate you.

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@Scott M. Thank you!

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Hey BPers!

I am closing on the other half of my duplex shortly.

It's a 3 BR, 1 1/2 bath 1200 SQF. It's not run down, but it's old and needs some rehab to boost rent. Kitchen was renovated recently though.

Question:

What areas of rehab are best to invest in first, and raise the rent the highest? (example: repaint, bathroom, kitchen, doors/fixtures etc.)

I want to only put in about 10k.

Thank you for sharing your time and experience!

-Daniel

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Originally posted by @Evan Polaski:

@Account Closed

How long to wait? - Do you want to cash out on new value or cost? Value is typically 6 or 12 month seasoning. Cost is immediately, understanding that you will be capped commonly at 75% of either value or cost.

Terms: My commercial loans (last looked about 8 months ago) were 75% LTV 20 yr am, 5 yr term and at the time they were 4.25%. Since these are balance sheet loans for the bank, each lender will have their own rates, and they can vary widely.

Banks: I found my lender from Google and a lot of phone calls. You can likely skip the large regionals and national banks. My lender has about 6 branches throughout SE Ohio. Another one I use has about 10 branches all in the outskirts of Cincinnati.

Thanks for the input Evan!

I want to get the cash out as quickly as possible so that I have it, rather than letting it sit inside the property. If I'm able to do some value-adds, great, but mostly I want the cash out.

The sale is coming up soon, I don't have the track record or the time to set up financing long-term, so I'm just going all cash.

The other problem is I'm a business owner and in 2020 I invested all the profits back into the business. On paper it looks like a bad year.

This would be a good chunk of my current assets roughly 70%. I don't want to sit heavy towards real estate so I'd prefer to get the cash out.

What would you suggest?

Thank you!

Daniel

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Originally posted by @Eric Bilderback:

Just refi on a small apartment term was 3 year fixed at 3.3 then it floats with a 10 year ballon. I liked the options of having a longer fixed rate but this had a lower prepay penalty 1% opposed to 2% and the lower upfront rate so I opted for it. They wanted me to leave at least 30% equity.

Thanks Eric, good info! I appreciate your time.

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Hey BPers!

I'm buying my first property a 6 unit apartment building in cash.

I don't want to keep my money tied up and want to cash out re-finance.

I'm hoping to have your opinions on these questions:

-How long do you typically wait before doing a cash out refi?

-What is the typical rate for a long term re-finance loan? 10-20 year?

-Do you have any recommends of banks that specialize in this type of procedure? I'm USA, Maryland.

Thank you for sharing your time and experience with me.

I appreciate you!

-Daniel

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Originally posted by @Bjorn Ahlblad:

@Account Closed Rates will vary by market..........In Wa they would run maybe 800 dollars. Make some phone calls for licensed inspectors in your area. Make sure you see the inside of every apartment. No exceptions.

Thanks Bjorn!

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Originally posted by @Bjorn Ahlblad:

@Account Closed What others have said and don't rely on numbers from the seller or his broker. Get your own. Have the tenants and LL sign Estoppel Certs verifying everyone is on the same page. Review the leases. Any deposits and pre-paid rents get them at closing or you will never see them. Congrats and all the best! 1940 was a while back get the property inspected by a pro.

Thanks Bjorn - what is a good average rate for an inspector?

Thank you for sharing those tips. Great help.

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Originally posted by @Dan Travieso:

Congratulations. Numbers look good but like @Matt Moreland said there will no doubt be some expenses to get the property up to code. If the owner had it for a long time he may have been grandfathered in on some code updates but once it sells you will be responsible. May be a good idea to go to your city/ county permit office and have them run the address to see if there are any updates that they are tracking you may need to make as well as the timeframe you will be expected to. There could be alot of expenses associated with these mandatory updates so best to find out before you purchase so you can factor those costs into your budget.

Thanks Dan! Good tip, will run for this tomorrow

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I forgot to add that the building does not have central air. It gets hot in summer. This is probably a big pitfall I forgot to mention. What are your thoughts?

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All Forum Posts by: Account Closed

Account Closed has started 8 posts and replied 38 times.

Post: Renovating a "Classic" bathroom for $3k?

Post: Best rehabs to boost rent?

Post: Best rehabs to boost rent?

Post: Cash out re-finance rate, too good to be true?

Post: Cash out re-finance rate, too good to be true?

Post: Cash out re-finance rate, too good to be true?

Post: 6-Unit Apartment Complex. My first investment. What pitfalls?

Post: 6-Unit Apartment Complex. My first investment. What pitfalls?

Post: 6-Unit Apartment Complex. My first investment. What pitfalls?

Post: 6-Unit Apartment Complex. My first investment. What pitfalls?