All Forum Posts by: Stephanie P.

Hello, I'm close to starting the process of Building a home in the Blue Ridge Ga area. We are planning on it being an STR property. By my calculation, we don't have enough to completely finish the project this year. I'm guessing we'll be 50k short. The building will be up, just not furnished/finished. I'm prepared to work and save for another year to get it done but I'm wondering if I have any practical borrowing options to get it finished? The Blue Ridge property is on 400 ft of creek front(stocked trout stream), very private on a subdividable 10 acre lot with mountain views. My home in FL is worth about 450k and I have 100k equity in it. Thanks, Tom

Hello friends,

Like I said, I have an opportunity. It could be beneficial or a total nightmare. I made a similar post with great feedback. So great it made me realize I should rethink the entire strategy.

I was introduced to a couple, both in semi poor health. They have a limited income and do not want a loan where they need to make any payments. They own a home outright worth approximately 400k

They want cash to pursue some alternative medical treatments. The wife wants to live in the home until she passes. Her health is poor but not terminal. That is the sellers bottom line-100k cash and to stay until she dies.

They don't want a reverse or a HELOC because they can't afford the payments and don't want to do the required paperwork. They want cash and they want it asap.

What would you do?

This is such a valuable resource and thank you everyone who is willing to share your knowledge and experience.

Thank you

I have recently been divorced and my ex and I co-own a 2000+sqft, 3br, 2.5 ba, 0.75 acer property with an additional 16x25 office space that has its own exterior entrance/exit and 0.5 bath, and a large one car garage. Its 10min to downtown Hendersonville. I currently reside in the home with my daughter and son in Hendersonville NC. She left me and the kids 2yrs ago and I've been paying the mortgage over that time to now. She wants to sell the house now for her half (or part) of the money. Rent is averaging ~$1800-2400 for a 3br 2ba home in the area. What should I do?

Details: 

-There is now ~$170,000 in gross equity in the property. (which is practically what is owed on the mortgage)

-I would have to refinance from 174,000 owed to ~250,000 to pay at least ex~60,000 and ~15,000 in repairs/updates/improvements to the property.

-Property needs crawlspace dry in, minor roof att, new furnace, new appliances, kitchen flooring and possibly 5 windows replaced. 

-Currently at 5-6% interest refinance of $250,000 would be raising my mortgage from 1225/mo to 1750/mo. 

I would like to remain in the area for another year, finishing my degree. Also I want to start a small rental property business and considering this as possibly the first property since I already own it and have so much equity. The home has a asphalt driveway and almost parking lot like area. I am wondering if it could be turned into a multi-room unit (renting each room with shared living space) and converting the large office space into a separate rental if I can convert the 0.5 bath to a full bath and add a small kitchenette. (possibly an AB&B?).

Should I refinance , live in and transform the property for a year and repeat refinance when interest rates drop later then rent?... or just sell, move the family to a rental and take my part of the equity, then use that to invest in my first rental property? I am trying to learn all I can about rental investing and any advice would be much appreciated! 

Regards,

Matt H

Hi all,

I’d like to know if there are any loan program for foreign nationals with 75LTV for both buy/rent and cash out refi. 

A whole course could be thought on Refinancing in the BRRRR method. Case in point: I started a real estate investment company three years ago, (Pawa Investment Properties LLC), and after hiring a coach to teach me the BRRRR method, I got private funding from friends and family to buy a single family home last year for $76,000 cash. The appraisal came in at about $185,000. Excited, I headed to the bank for a cash out refinance only to find out that it is not that easy. The bank wanted a DTI of 40%, didn't it because I recently bought a wine store with cash and cc so my credit score is between 599-623, the last time I checked. I am still to cash out on a property with no mortgage that is worth $185,000. I am only asking for $100,000 and already have the property rented.

New investors like myself need to be schooled more on the Refinance of the BRRRR method. It is the most important R.

So if we purchase a house at auction with cash, can we immediately refinance into a DSCR loan to get our cash back out?

Loan depot gave me a 3 month seasoning period. Their 5 year ARM rates are around 5.3%. Not great but not bad.

Hey everyone I have a newbie question,

Lender 1: bank, buy under personal name, max 3 properties but better rates

Lender 2: HML, buy under a corporation, more scalable, worse terms

Id like to start with the bank. But they are really slowing me down. Had me open 2 more credit lines as I only had 2. Now those will take a few weeks to be in effect. Or will require a coborrower.

Question:

If I used the HML which requires me to incorporate, would I still be able to use the bank for 3 properties later on as the properties wouldn't be under my personal name?