All Forum Posts by: Ryan Cleary

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Columbus.

This will be my biggest value add deal so far. Huge opportunity to drastically increase rent at this property.

I’m doing a cash-out refi on a 2-unit home and am dealing with a tenant who has only paid half of November’s rent, we are in the process of dealing with this tenant but if we go further with scheduling the appraisal, will this have any effect on that process? Should I wait till the tenant is up to date on rent or removed from the property?

Hey Joe! I have been investing for about a year and a half, you are in a great area to start! 

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Columbus.

Purchase price: $218,000

My most confident purchase yet, inspection came back a few smaller concerns but overall is the nicest home I have purchased yet.

So, it has come to that point where I need to start researching LLC's, I will need to create one in Florida and several in Ohio but Ohio can wait.

I have only one property in Florida but need to establish an LLC for it. This will be my first, I am just curious as to the steps I need to take, do you recommend doing it alone or with aide from a company such as legal zoom or a lawyer.

I am in a rush to do a cash-out refi on a particular Florida property I have.  Currently, the 2-unit has one unit rented and one unit in an extensive turnover with several new appliances being installed.  The rented unit has some issues with the kitchen cabinets but is otherwise in decent shape, the cabinets are set to be replaced in a month or two.

Comps in the area are higher than I expected, should I wait to order the appraisal till after all work is done?

I have one house where I think I can take out 40k with a cash out refi.

However I am putting offers in on a similar property in the same town.

I know I am going to word this improperly but is it possible to wrap the new purchase and the older property on the same mortgage and use the equity to reduce the down payment of the new purchase?

Hey Tyler,

Yes, paying off that mortgage would bring you positive cash flow but do you really want to dump that much cash without utilizing any leverage?  Where is the property?  If it in an area with excellent appreciation then it would be worth keeping the minor negative cash flow with the expectation that the rent/value will rise considerably.  I don't think that a refi will reduce your monthly mortgage payments considerably.

So I have a property that I assume to have a value of $300,000. My current mortgage is $162,000. Doing the math, a 70% LTV would land at $210,000, an 80% LTV would land at $230,000. This essentially means I could have a HELOC around $50k - $80k.

I am thinking about taking a HELOC out to purchase a short-term rental. The incoming rent is more than sufficient to cover any extra monthly fees incurred from the new loan product.

Where do I get started? Is it hard to find lenders giving HELOC products for rental properties right now?

Investment Info:

Other other investment in Beaufort.

This will hopefully be my worst-performing investment. With plans of setting sail to circumnavigate the world in 2022, I thought to add this here since I will be using it as a primary residence and none of it would be possible without real estate! She is a 40' Catamaran from 1998.

How did you finance this deal?

A HELOC on my current Live-in-flip that has performed beyond my expectations.