All Forum Posts by: Orkeem Davis

I'm in the process of having my roof completely replaced on one of my rental properties.  With that being said, I have been mainly scheduling appointments with companies that offer a payment plan.  Basically, I want to use some of the positive cash flow of this rental property to pay for the roofing job - monthly payment plan. 

While screening roof companies, one company offered a creative way to really lower the overall costs.  The company suggested that I buy all of the supplies and I only pay the company for labor.  50% upfront and payment plan for the balance.  I can afford to pay for the roofing project both ways, but I would like to receive feedback to the best approach to pay for this roofing job. Thanks.    

I have buy and hold properties in North and South Jersey.  By far, we get a bigger bang for your buck in North Jersey, but as mentioned earlier harder to get in.  Certain parts of  South Jersey have some good deals, but you have to do your due diligence.  

@Suril Dalal - Curious to know where you landed with your potential offer.  Just to echo some of there, RE education is key.  Do your due diligence!! I would not purchase a property just because it is next door to my own and the owner suggested it, unless there was truly a win-win solution. Do the present owners own the property outright free and clear?  @Samuel Barton great suggestion - learn about seller financing and find out if that is a viable option.  If it is, this could be a great deal.  Bottom line, you need RE education my friend.  Stay inspired.

Update - i have a few additional properties in S. Jersey and N. Jersey and my intention has always been to buy and hold.  As such, my wife and I plan to tap our 401k and simply complete a CashOut Refinance of that earlier mentioned duplex. We are still building our RE portfolio that we want to maintain and a CashOut Refinance makes the most sense.  Thanks @ Bob Razler

These financial moves along with tapping our unsecured lines of credit, we should have 20% down payment plus more than sufficient liquidity to purchase a small apartment building - 4plex.   Looking forward to that 500k+ project!!! Thanks everyone for the feedback.  

Hello @Eddie Veiga,

I am looking to do something similar -- I'm looking to buy a 4plex but will utilize 401k to assist with 20% down payment. I think it would be beneficial if we spoke more. I am interested in finding a lender that will refinance @ 100% LTV. As far as your question, yes, you can refinance after 12 mon seasoning period, but it could be refinanced sooner with certain lenders --- shopping around. Most CashOut Refinance are at 75% LTV. How this helps.

You can also consider hard money lenders... they have more flexibility to work with you but higher costs to CashOut.

401K can be an awesome vehicle to get a good amount of liquidity fast.  There are Pros and Cons of tapping 401k.

@Anaisy Alfonso - fun times. Take your time a complete a good analysis of the property - taxes, interest rate, maintenance, etc.  Are you ready to move forward with a 20% down payment?  Even though you are qualified for 400k, most lenders want you to have "skin in the game."  Respond her or PM if you need more detailed info.  Good luck!!

Congrats!! Hardwood floors look amazing.  That is how it's done! Great Job!!

As an investor, you need to find a good medium to build your RE business.  Bottom line, you need both:  cash flow and appreciation to really push the ball forward.