All Forum Posts by: Pat Lulewicz

For our third meet-up of the reboot of Pints & Properties, we are excited to present Devin Solow and Ian Lipman from BETTER. Fix & Flipping has been all the craze for almost a decade after the last recession: buy a (generally) old, distressed, or undervalued home; renovate the structural, mechanical, interior, and/or exterior; and sell the home for a profit OR hold it as a rental property. With this strategy comes a lot of risk like "what's hiding behind the walls?" and "do I need to replace the plumbing or is it fine?". Have you ever considered removing all of the unknowns and building a brand new structure to hold as a rental or resale? Join us for a fantastic night of information as Devin and Ian give us the inside scoop on the pro's and con's of new-build investment properties.

MLS stands for Multiple Listings Service. Its where agents "post" a listing for sale. These days, every MLS syndicates to sites like Zillow and Redfin, so you are likely seeing every house on the MLS on Zillow/Redfin/etc. With that said, you can set up searches on ZIllow/Redfin or work with a realtor who specializes in investment properties, specifically value-add real estate (for your BRRR strategy) and have them set up an MLS search for this criteria that they would then send you hourly/daily/weekly/ad hoc

The MLS of the location you're looking for

Facebook groups for RE in the location you're looking for where wholesalers post

Investorlift

As you consider a DSCR loan and mention breaking even, the whole underlying principle of the Debt Service Coverage Ratio loan is that the ratio needs to meet the lenders requirements, most of them requiring a 1.10+ DSCR which means Rent is 1.1x the mortgage payment. If you're "breaking even", then your DSCR is 1.0 which would fail the requirements of the lender and they would decline originating the loan. This doesnt' even get into reserves, vacancy, maint, PM services, etc. The solution for this would be to bring more downpayment to the table, but you're definitely pricing yourself out of the markets you mentioned. I'd recommend looking at more secondary or tertiary markets for your goals.

If the rate of the cash out refi would be higher than your current mortgage, then just do the HELOC. There's actually a good chance your overall "cash out" with the HELOC will be higher (most banks will go up to 90% vs 80% is generally the highest a cash-out will do) albeit at a higher interest rate, but you can protect the original mortgage rate if its very low (2020/2021 rates).

Also consider the flexibility of only pulling on the HELOC when you need it thereby keeping expenses down. If you do a cash out and can't find a deal right away, you're blowing through the interest on that amount that you cashed out.

Always recommend local (or at least some level of boots on the group). They will know market data and trends better, have reliable comps to base their recommendations on, and could even be a great deal flow with current portfolio properties selling.

The completely remote, centralized PM function is one of the reasons why you see the homes owned by PE firms sit on the market so long. Its just hard to be good when they're chasing margin and keeping OH costs and personnel costs low.

Hey Daisja - we host a monthly Real Estate meet-up with different topics on a monthly basis at the Brier Creek Carolina Ale House on the third Thursday of every month from 6:30-8:30. This month it is this Thursday, February 20 at 6:30p. Come out and we can chat or help answer any questions you might have. There'll be like-minded individuals who's brains you can pick as well:

https://www.biggerpockets.com/forums/521/topics/1230348-pint...

Hey Mason - there are markets of NC that will provide you cash flow, but you will not find it in Raleigh with LTRs if you are getting leverage (unless you have a "discount" private lender). Creativity, self-management, and elbow grease can make it happen (again, if using leverage), but this is a long-term strategy type of market.

For our second meet-up of the reboot of Pints & Properties, we are excited to present Tim Harvilla from Casa Lending. Have you had questions related to hard money lending? Tim will share his experience and expertise guiding us through Fix & Flip loans, DSCR loans, Portfolio loans, and even New Construction loans within the hard-money space to be able to provide you the helpful information you need for another lending source on your next project. Come with any questions you have! If you are nervous or embarrassed to ask a question, please feel free to send a message to Nate or I, so we can ask for you!

Thank you for your service. I would look FAR AND WIDE for someone to do an investment property HELOC -OR- go to a bunch of banks and CUs (including who you bank with now) to find someone to provide an unsecured (or secured if you have other collateral) LOC to get rid of the high int debt. Find a private lender who would give you that debt for a lower amount. The main thing being: giving up a property that appears to have appreciated pretty well is just a touch pill to swallow and I've regretted a few moves I've made when put in a similar situation to yours, and I had less equity in mine.

It sounds like you're moving to Raleigh in the near future and want to buy a multifamily to househack. Unless y'all have an incredible W2 to help with the purchase, you will not find something that "works" in the Triangle and in a good/safe location. If you are neighborhood agnostic, sure, but the type of property you are likely considering will look like an underwriting dumpster fire. If all your eggs are in this strategy for your move, I would strongly advise doing some underwriting and research concurrently with this selling decision.