All Forum Posts by: Tim Andy

@Scott Rauch I've been reaching out to a bunch of banks recently. The best terms I am seeing is 5 year ARM @4.25% amortized over 20 years. These are requiring 20% down. This is for a commercial loan due to the fact the property was bought in an LLC. I did reach out to 4 or 5 banks before I found someone willing to allow a LTV of 80% and amortized over 20 years. Some of the first banks I talked to were less favorable in loan length and LTV.

@Randy Hunter I became an agent in 2018 so I did all the negotiating myself. I do kick ideas off my broker to get his thoughts on my rehab estimates and expected rent so I can feel confident my numbers are solid before making offers.

@Andrew Postell Yeah I bought and rehabbed with cash and now I need to pull that capital back out so I can start my next project. These are owned within an LLC so I need a commercial loan.

@Donald Cherry I meant to updated that, technically I have 61k invested right now, the $4,630 was my rehab expense. I am working with a bank right now on re-financing. Once that is complete I will know how much I left in the deal. Right now I'm thinking I will be able to take all my initial capital out plus some. Here are my estimates after getting financing.

@Kyle Spearin Thanks! For this deal I was working with a friend of the deceased owner. The owner didn't have any real family to handle her estate so her friend was dealing with everything and they were getting a lot of agents calling with lowball offers saying they shouldn't expect anywhere near asking. I came in low too but I did it explaining all the work required to get it ready to rent and I always treat everyone as I would want to be treated. She told me she would accept my offer because I was so nice.

Closing went smoothly, I advertised on craigslist that any furniture in the house was free and got a good deal cleaned out in one Saturday afternoon. I had 1 dump truck worth of leftover items to remove. It was my first BRRRR deal so I was looking for something requiring minor updates and a refresh. My second BRRRR was much more involved.

@CJ M. Thanks that's what I have been doing I keep chugging away at it with the hopes I find one that will work with me.

@Zach Snyder A few lenders are telling me they can do a 5/20yr amoritization @ 4.25% for 80% of the appraised value, but its just that seasoning period that's killing me. The pandemic is definitely consuming a lot of the banks time so getting anything done will be a few weeks out. 

@Steve K. I believe my DSCR and DCR will be sufficient as will my debt to income right now. I on;y have 3 rentals and speaking to banks before my DTI ratio shouldn't be an issue until i get to 10+ rentals. For the two properties I'm trying to refi I believe the one is worth 90k its rented for 975/month and taxes are only 1000/year. The other I believe is worth 110k and its rented for 1100/month, taxes on that are 1100 a year. I'm really hoping to get some cash out so I'm in a good position when this crisis starts to hit the housing market and deals start to become available.

Thanks for the feedback guys.

I have been reaching out to local banks and credit unions in the Pittsburgh PA area in search of anyone who will do a cash out refinance at the currently appraised value without needing a full year of seasoning. I have talked to 6 local banks and 3 credit unions and they are all requiring a year of seasoning.

This is killing my plan of buying more properties quickly with my own cash. I bought a house for 53k, put ~30k into it, and now looking at comps it should be worth ~115k. Its currently rented for $1,100.

Its not worth it to refinance at the purchase price. Does anyone out there know any lenders with more lenient requirements when it comes to seasoning periods. I have two properties currently owned outright to be refinanced, one has been owned over a year and isn't a problem. The properties are owned within an LLC.

@Clayton Hepler Currently I'm looking for something >= 15% COC. For my first investment I was looking at a few specific areas in and around Pittsburgh and for a multifamily. We found this on the MLS it had been sitting for a while so we were able to get it for a price that worked for me. The lawncare and water/sewage bills have eaten into my return on this one so I'm only seeing about 9% COC(after accounting for Vacancies/capEx/Maintenance) but the rents need to be raised once the current economic events return to "normal". Below are my numbers on this deal. I've since transitioned to the BRRRR method and I'll have some posts on the numbers I'm seeing on those deals after I refinance the two I own outright in the next month or two. On my BRRRR deals I should be leaving at most a couple thousand dollars per deal( less than $3,000) and they will cash flow between 200-300/month.

@Nicholas L. try to get a good understanding of the different neighborhoods. They vary wildly. Also, taxes will be substantially lower in everything in Pittsburgh because of the city schools. I've been in the area most of my life. Its a nice place to live although the weather is terrible.