All Forum Posts by: Patsy Waldron

Locations and parent company point to a British lending group...??

Nice work! The numbers look great.

I am curious how you plan to change the building to 5 1-bedrooms without changing the layout- where and how would you add 2 extra bathrooms if layout stays the same?

Look into the Fannie Mae Homestyle loan. It is similar to FHA's 203K loan, except it can be used for investment properties.

It is actually pretty straightforward. You register the LLC as a "foreign LLC" in the other state (Ohio, NC) and then you can buy, sell and conduct any other business there.

Rentometer.com is a popular (and therefore presumably accurate) website for rents in your area. You get 10 free estimates, after which you have to sign up.

Your county assessor or auditor's website will give you the exact property taxes for specific properties. Search by address.

Electric bills will depend on size of family and usage, so I don't know about an average.

Well.... Unless you have several rehabs going at once, you won't/can't have 25-50 rentals in a year using BRRRR. This is not a scale-up-quick method, for sure.

Most banks (what my own bank says + from what I have read of other people's experience) require you to wait 6 months ("seasoning") before they will refinance. However, if you use the "delayed financing exception," you can cash out as soon as rehab is over. If you do everything cash upfront, your bank may also allow you to refinance sooner than that. If you want to include the rents in your income to qualify for new loans, you'll just have to wait until they show up on your taxes.

Also- just to be clear, right from the get-go the house should appraise for more than what you bought it for. And it doesn't matter what YOU think the house should reappraise at after rehab. You should do some research before you even buy about what similar properties are selling for so you know what you expect your rehabbed property will appraise for, and budget your rehab to hit 70% of that value. It's all in the math.

Looking at one Right now. If they are both the same type of building (e.g. SFH) and permitted, there shouldn't be a problem either appraising or financing. Where you may run into trouble is if there are two different kinds of buildings on the property, like the one I am interested in, which has a triplex and SFH on one property. These are challenging because they don't fit into a neat little box for anyone involved.

What you are looking for is Fannie Mae's HomeStyle loan, which is a mortgage + reno loan for investment properties. Look for banks in your area that offer the HomeStyle loan. Not many of them do, but it does exactly what FHA's 203K loan does for owner-occupied properties, except it can also be used by investors.

An LLC would not protect the property, it would protect things that you own that are OUTSIDE the LLC. For example, if you own two properties and they are each in their own LLC, and a tenant in one property sues you for falling or something, they could obtain a judgment that places a lien on the property but they can't go after the property in the other LLC. Does that make sense?

And yes, it's super easy to find out who owns an LLC, as your name is on the paperwork when you file the LLC. Anyone searching on your state's Secretary of State's business website can find your name and address.

Sounds good! Keep me posted.