All Forum Posts by: Stephen Renehan

I’m neither an attorney, nor am I familiar with the Portland landlord codes.  However,  if the existing tenants provided you with written evidence that they did not want to renew their lease, why would you be obligated to pay the $4,500 relo fee?  Just thinking out loud.  That’s all.

Danny,

What are your intentions for this duplex?  This is just my perspective, but if you are marketing this property to professionals a 3rd bedroom may increase the applicants with children.  Of course, a 3rd BR may increase your potential cash flow.  This is simply a personal decision on your part.  I don’t know if there is a ‘right’ or ‘wrong ‘ answer.

I hope that helps.

Stephen 

Might your reserves also depend on the age of the house, if you don’t know for certain which items have been recently replaced?

Have you considered an FHA loan, or other facility that requires a lower down payment? Even if you need cosmetic repairs, that may cost more than $2M.

May I ask for the definition of RUBS?  Google wasn’t very helpful...unless I wanted rubs for ribs.  :) 

Thank you!

@Jessica G.I’m glad you followed my thought process.  I’d hate to have you do a refi, feel the pressure of buying a property and end up with the wrong one.  I wish you the best in your search!  😊

Thanks@Ola Dantis! I agree that finding a good deal may take time. Why enrich a bank or mortgage company now, when you may not need the money for several months. Consider the HELOC as being preapproved for the funding when you need it. :)

Let me use a personal example. I just purchased a property which I am rehabbing. I only pay interest on the money I use. I'm sure you're familiar with the BRRRR strategy. If not, just check out Biggerpockets.

Once I finish the rehab in a few months, then I will refinance into a long-term fixed rate mortgage. Interest rates shouldn't increase dramatically over a few months, but this is your call. Consider a HELOC a credit card secured by R/E. I may have a credit card with a $10M limit...but it doesn't cost me a dime until I use it.

I hope this helped.

Stephen

Perhaps I'm missing an important point. If you have sufficient equity, why don't you simply obtain a home equity line of credit? You can use the money when it's needed, without changing your existing note rate. Obviously, HELOC rates may rise, but why pay interest now if you don't need the money yet. Obviously, you know the exact details of your situation. I hope this helps.

Stephen

Is there a Florida-specific reason that traditional banks aren't interested in a HELOC? If you have sufficient equity, credit and cash flow, I can't see why a Bank would be reluctant to lend as that is how they earn their income. Perhaps try a credit union or a smaller community bank? Just a thought from a former banker. :) Good Luck!