All Forum Posts by: Trina P.

@Peter McDonough@Peter McDonough I am using Guaranteed rate

@Shannon Wright I've never considered a 2nd HELOC. I'll check TCF bank out. Thank you for the tip! When you put it that way it definitely gives me a different perspective.

@Bob Norton We are refinancing to pull money out for our next deal. We would like to use private financing and would like to put down 25% of the deal. Do you find that is pretty typical for private lending?

@Bob Nortonundefined

We have a property in Huntsville, Alabama that we purchased three years ago. It's cash flowing well and has enough equity to refinance and pull our roughly 14.2k for about 4k in closing costs(the breakdown of expenses are below). I'm not counting the prepaid insurance and prepaid taxes in that number since we have those funds in our escrow and will be transferring them over to the new loan if we refinanced. The est. APR is $135,000.

Debts to be Paid Off $80,885.00
Discount Points $3,016.24 
Appraisal Fees $500.00 
Credit Report Fee $13.75 
Undisclosed Debt Report $31.25 
Prepaid Interest $188.64 
Insurance Renewal $468.00 
Insurance Escrow Reserves $195.00 
Tax Escrow Reserves $422.00 
Title Fees $700.00 
Lender's Title Insurance $288.00
CountyTaxes $178.00 
County Recording Fees $137.50 

Total Costs $87,023.38
Total Estimated Due at Closing ($14,265.62) 

Essentially, we would be going from $28,700 invested to $12,800 invested. This increases our cash on cash return but lowers our monthly cash flow. These two screenshots are attached below. Here's my question. Is it worth paying 4k in closing costs to get 14.2k towards another deal? Or would it be a better value to hold off and wait for the property to possibly increase in value and take out more later? Or is it better to not refinance this property at all? 

This helps immensely @John Leavelle thank you so much for your time! 

I'll keep working on the numbers and be improving but this certainly helps to point me in the right direction. Thank you again!

@John Leavelle Thank you so much for this very thorough response. I really appreciate your time. 

This would be a single family. 

This is very very helpful. I went back in and changed the following: 

- Added my acquisition financing amortization time
- Increased my closing costs for the acquisition loan 
- Changed my purchase price to $60k to reach the target LTV you mentioned in #3
- I also added in monthly holding costs which I totally spaced. I estimate $300 total in holding costs during renovation which I just added to the rehab. 
- Changed my refinance loan amount to $110 (10% equity instead of 25%)

I have one follow-up question about the refinance loan amount if that's okay.

I put $97.5k as the refinance loan in order to keep 25% equity in the deal. I have read on BP that's a good idea. I originally calculated $70 (purchase price) + $60k (rehab) = $130k - 25% = $97.5.

After redoing the calculation to include $108k (10% equity instead of 25%) instead of 97.5 I was able to get the "inf%" Do I want to get this then? I guess I'm not sure what the "inf%" really does for your deal.

*This link comes directly from our calculators, based on information input by the member who posted.

Hey Biggerpockets experts! First of all, I would just like to thank this amazing community for the support everyone provides for one another. It's truly remarkable how an enormous community like this can change lives. Like my own! 

If any of you have a spare second I would love some help on this deal. I'm new at the BRRR strategy and can't understand why my cash on cash ROI remains so low in this deal.

Any other tips on things I could be doing differently when analyzing this deal would be superb. Thank you!  Report attached.

Here's my report

Thank you so much for your time and suggestions @Kiersten Vance and @David Faulkner

I like the idea of building equity through multiple homes. Very clever. Kiersten, congrats on that Glendale flip! 

@Joe Homs thank you so much for the advice!

haha so it looks like a reality check is in place for me. We are able to put 20% down. 

@Account Closed  Thanks so much for your reply! Can you explain what AITD and PITIA stands for? 

How many of you rent vs buy here in Orange County? As a real estate investor is it a good investment to own here?

My husband and I would love to get into a nicer home and we live in Orange County. We are sick of renting but, if you live around here you know how difficult it is to transition to buying. We really want to live in areas with great school districts but understand it comes with higher prices. We are in our mid-late 20s with excellent credit. We don't really want to go above $2200/mo for either rent or mortgage. We are open to buying a fixer upper but realize it's going to be tricky to get affordable financing.

We are considering seller financing. We actually found this site tonight http://www.notrent.com/

Thoughts? Good idea? Bad Idea? Any other options?

Thanks so much for your help!

I just made my first purchase on a rental property in Huntsville through a turnkey company called, ROIPGM