All Forum Posts by: Vasundhara Ranjani

We now have several multifamily buildings - each with its own robust insurance policy. However, it was suggested by a friend that we should get an umbrella policy for each building.

I inquired with our agent and he advised that we do either of the following:

1.) Increase liability coverage per building

2.) Get an umbrella policy per LLC (apparently we can't get it per building?)

The latter is significantly more expensive, however, which option would you recommend given our situation?

Also, each of our buildings is in its own LLC and so what is the best organizational structure you would recommend that will protect us best?

Would having the buildings/LLCs in a trust or several trusts (anonymous?) help? If so, how?

Thanks in advance.

Each building is more than 5 units. Please let me know her contact info. Thank you.

As the title states, what are some resources for doing cash-out refi's on multi-family properties?

We recently had several of our properties appraised by an MAI-certified appraiser and the values came back positively.

We have some equity in the properties and would like to pull out as much cash as possible.

The issue is, the two banks that I spoke to last week told me that although their terms are 75% of appraised value for cash-out, they have other "filters" such as "length of relationship with us," "duration of ownership of subject properties" (all properties have been owned for more than one year), and other arbitrary conditions.

For example, one of the properties was appraised around $900K and we currently owe about $375K on it. 75% of 900K is $675K, and so after paying off the first note, we should have approximately $300K cash to pull out. However, the bank states that "they cannot give $300K just because it's available." This seems quite strange to me - if we have the equity in the property and we want to do a cash-out refi, I thought it should be simple to do it based on the 75% LTV that they advertise. Is this not the case?

As an FYI, our credit score is ~ 800 and we have excellent DTI so those things should not really be a concern for the bank.

In the example above, technically I should be able to pull out the $300K cash and do whatever I want with it (i.e. go to Vegas for a really expensive vacation) - meaning, it should be none of the bank's business what I will be using the cash for. Jokes aside, we do plan on using the capital mostly for acquiring additional investment properties at a future date.

There is nothing in our background to bring up any red flags etc. so I find it puzzling that they say it's not as simple as it sounds - pulling 75% of the appraised value minus the outstanding note on the property. The subject property, with its appraised value, is the collateral the bank has - so any potential "risk" for the cash-out refi (loan), is practically non-existent.

So, are there reputable banks that mean what they say (advertise) and abide by the terms they quote/describe in the beginning instead of coming up with seemingly arbitrary "filters" down the road?

@Sam Grooms Okay, I see. Yes, the price did seem quite high so I'm considering going with the individual electrical heating but I agree - getting several bids/estimates is the way to go.

Thanks.

I have a 10-unit apartment building and got a call from my PM this morning that there was water pouring out of the boiler in the basement/boiler-room and so when he had it inspected, he was told the boiler was gone and needs to be replaced.

He says that it will cost $40K - $60K to replace the boiler. Is this accurate? Also, what kind of boiler should we use to replace it - something that is more modern, efficient, and effective?

Also, what alternatives are there instead of using a boiler system for heating?

It was suggested that we can install electrical heating systems in each unit so that the tenants pay their own heating bill and we won't have this boiler issue going forward. Approximately, how much would this cost?

The building is in one of the states that has a lot of snow so the winters are rough. Thankfully, the weather is fine now so we have some time, but not a lot before we find a proper solution.

Please help.

@Jay Hinrichs How do you get a 5 mil line of credit with just 1 mil cash? Can this be done with smaller amounts? If I have 100k, can I get a 500k line of credit and invest the 600k? Please give me some details on how to do this and which bank will do that.

As the title of the thread states, what is the best way to maximize cash flow with $250K cash in the multi-family rental market right now?

What are some good strategies, markets, properties etc. to do this?

I have a few multi-family properties and am looking to expand into Texas - Dallas/Fort-Worth, San Antonio, Austin, and Houston and surrounding areas.

What is considered the 'best' market for multi-family properties in Texas right now (10 units or more)?

In terms of professional property managers, what are some recommendations people can make?

Thanks in advance.

I'm mainly a property investor but lately I've been looking to diversify my holdings and came across several FedEx Routes for sale - both Home/Ground and Line Haul routes.

Does anyone here have experience owning/operating a FedEx Route business? What are the pros and cons?

I am not planning on driving the routes - would need to have a manager & dispatcher while having trucks and drivers actually drive the routes and deliver packages.

The businesses seem to be quite strong cash-flow-wise but I'm not sure if it's a good idea to get into this business.

Would appreciate any feedback on this.

Thanks.

Very important point!