All Forum Posts by: Robert Dunbar

@Christen G.

Thank you. I was under the impression the property would be valued based off rents as opposed to comps. I guess the magic number is +5 units before they do that. Good to know

@Stephanie P.

Thank you for your reply

Hi,

I have a triplex which I’m working on. It’s technically a duplex and a house on the same property. It is/was in pretty bad shape but I’m repairing it in order to rent it out. My questions are about how the property will be valued after I’m done fully repairing it and raising rents to market value. I bought the place in bad shape for $255k and will have all units repaired and modernized. This includes new roof, flooring, cooling, paint, appliances, windows, doors, and stucco. Rents are currently $650 in the duplex for each unit. The house is not rented while we work on it. I plan to increase the rent on the duplex to $950 and the house $1400. Is it possible to get a cash out refi after everything is rented at the new price? Looking at my numbers will there be anything there? Thanks for your help.

Robert

@Dave Skow

Great advice.

@Dave Skow

Interesting. I have a low rate on the 1st mortgage at 3% and the heloc current rate is around 8%. The max amount on the heloc that I could utilize would be $60k which isn’t as much as I’d like to go into the next property with. My thoughts were to pay the heloc off, close the line of credit, and cash out refi at the new higher rate which would give me roughly $140k to work with, while breaking even on a cashflow perspective. Basically just to keep the party rockin into my next property.

@Erik Estrada

Perfect. Thanks again man.

@Erik Estrada

I believe I opened about 2.5 years ago. 10 years to play with the money, 20 years to pay it off.

@Erik Estrada

Thanks Erik. Would closing out the line of credit early have an adverse effect on my credit? Or at least a big enough one to hurt me? My credit is very high and I’m at 60% or so usage.

Hey Everyone,

I got a heloc on my previous home to fund the purchase of an investment property. I’ve since moved to a different property and a few years have gone by. The property now has more equity than when I first got the heloc. My question is, if I pay off the existing balance on my heloc, could I a) close out the line of credit, and/or b) get a cash out refi on the new equity amount? I would use the cash to buy more properties of course. What would be the smartest move? Or is there perhaps another strategy I could use here? I’d like not to dip back into the heloc because it has an adjustable rate which is high right now, and wouldn’t be as large of an amount as my new equity after paying it off.

It won't be long until I have a BRRRR property completely renovated and I need to start looking at the best way to get the most cash out of the value that I've added to it. Who has great deals on cash out refi's?

Thanks