All Forum Posts by: Account Closed

Brian Jones the financing out of the heloc depends on the size of the multi family property and whether you will live there or not: -four or greater number of units mostly get done through commercial loans. In the DMV area, I have found between 65 and 80 ARV, and typically 15 years to pay back the loans. This cuts into the cash floor compared with a 30 year mortgage -three or less units can be done through a conventional loan. You will get the best deal if you live in the property as well. Some credit unions in the area are around 4% for a fixed 30 year mortgage at upto 90% ARV

Brian Jones the financing out of the heloc depends on the size of the multi family property and whether you will live there or not: -four or greater number of units mostly get done through commercial loans. In the DMV area, I have found between 65 and 80 ARV, and typically 15 years to pay back the loans. This cuts into the cash floor compared with a 30 year mortgage -three or less units can be done through a conventional loan. You will get the best deal if you live in the property as well. Some credit unions in the area are around 4% for a fixed 30!

Do you know a good RE lawyer in DC?  Tenant has endless list of demands and we might end up in court. She wants a basement door which doesn't lock for instance, and the tone of our interactions has deteriorated. 

The lawyer would help with handling the communication with this tenant, at least send a warning shot.  I also need to button up all my asset protection stuff.

This is quite possible. I am currently doing one, and a friend of mine just finished one.

Thank you very much @Scott Lewis!

I am looking for a bank which can do home equity loans on rental properties, and then do the same after renovation (at ARV) in the Washington DC area. Do you have a favorite banker that you could recommend?

Thats another way to think about it, thanks @Crystal Smith!

@Albert Bui thanks for the 'paydex' info. I have been exploring this for a while and wondering if its worth it in this business line. Have you found cheaper ways of getting a paydex score? I called DB, and it would costs a significant chunk of change to develop a good paydex score. Of course, you can register for free, but it costs money for them to track your payments.

Originally posted by @Crystal Smith:

@Triston Murray Regarding the tax implication referenced @Chris Martin, he's correct to advice you to consult a tax expert. We purchase all of our properties inside of an entity. For properties that we know we will own for less than one year (i.e. they are a potential flip) we use S-Corp. Greater than one year we used an LLC.

Thanks for this Crystal!! I was under the impression that you can't refinance (HELOC) from within an LLC based on some posts around here. Is that true? Under what conditions can one HELOC under an LLC?

Thanks @Joe Fairless!