All Forum Posts by: Vandale Gentry
Vandale Gentry has started 4 posts and replied 8 times.
Post: Be careful what you post on this site! Reporters are watching!
- Franklin, TN
- Posts 8
- Votes 1
Be careful what you post on this message board. There is a reporter around here taking screenshots. These screenshots can end up in the wrong hands. This could lead to lawsuits because you know everyone tries to sue everyone over anything these days. Admins please delete this person ASAP!
Post: Be careful what you post on this site! Reporters are watching!
- Franklin, TN
- Posts 8
- Votes 1
Be careful what you post on this message board. There is a reporter around here taking screenshots. These screenshots can end up in the wrong hands. This could lead to lawsuits because you know everyone tries to sue everyone over anything these days. Admins please delete this person ASAP!
Post: Best way to get money out of rental?
- Franklin, TN
- Posts 8
- Votes 1
Hi guys,
I have a property that I previously lived in for many years prior to getting married and buying a bigger home and turning the other into a rental. We have had the rental for a while and now I am ready to purchase another rental home but am having a hard time deciding on the best financing method. I found a property for $150K that I would like to buy. I have $14K in a savings account, I have an income of about $460 a month from my current rental (after paying mortgage and taxes, etc.). I thought about a HELOC for the down payment, but the banks that I have talked to will only allow me to do 65% of value for a HELOC on a rental property. I thought about refinancing (the 3rd "R" in BRRRR) but the rates are higher than what I currently have. Currently, the rental property is worth $285K and has a mortgage of $175K, with a rate of 4.25% and the payment is $1,025. What is the best way to get enough money out of my rental for the down payment?
Post: Please help me with BRRRR financing
- Franklin, TN
- Posts 8
- Votes 1
No,
Originally posted by @Mark Pedroza:
Originally posted by @Vandale Gentry:
Hey guys,
My grandfather and his brother were deeded a house by their parents when they passed in the 90’s. My grandfather’s brother lived in the property until he passed away in December 2017. The house is in the probate process and the probate judge just released the house to be sold.
The house was built in 1972 and has not had any major upgrades since it was built and there is a plumbing issue going on. The realtor thinks she can put the house on the market for $140k and sell it as is.
I would like to purchase the property using the BRRRR method.
My current rental is worth $265K. We owe $175K. I would like to use the equity from the rental and use that as a down payment and closing but will also need about $25K for rehab. After repairs the house will be valued at $250K. How can I make this work?
You mentioned that the judge just released the house to be sold. So, the home will likely go to auction and you'll be competing with other bidders for the property. Remember that the highest bidder wins..
Post: Please help me with BRRRR financing
- Franklin, TN
- Posts 8
- Votes 1
@David Hildebrandt @Kevin Sobilo
Originally posted by @Kevin Sobilo:
@Vandale Gentry, that doesn't sound like a good BRRRR deal.
For example, if you are buying for $140k and putting $20k into it, that is $160k all in. You want to be able to refinance out $165k so it needs to appraise for $213,333 and for that to cashflow you probably need to get $2k per month or more in rent.
Post: Please help me with BRRRR financing
- Franklin, TN
- Posts 8
- Votes 1
It will rent for $1,100 minimum when rehabbed.
Originally posted by @Kevin Sobilo:
What will this house when rehabbed rent for? Many single families won't cash flow when you put that much into them. Some will of course.
Post: Please help me with BRRRR financing
- Franklin, TN
- Posts 8
- Votes 1
Do you know of anyone who will do a 30 year Hard money based on value after rehab?
If the numbers you propose can be substantiated, go get a hard money loan. Tons of places out there that will loan on fix and flip, some up to 85%. You might pay more in interest, but for that kind of return it will be worth it.
https://www.biggerpockets.com/hardmoneylenders
Others exist like Lima One Capital, Corevest etc.
Normally I would say to get a blanket loan at your current mortgage provider. They can wrap both properties up in one mortgage and spread the equity across two deals. However most lenders of that ilk will not go for houses straight out of probate.
Post: Please help me with BRRRR financing
- Franklin, TN
- Posts 8
- Votes 1
Hey guys,
My grandfather and his brother were deeded a house by their parents when they passed in the 90’s. My grandfather’s brother lived in the property until he passed away in December 2017. The house is in the probate process and the probate judge just released the house to be sold.
The house was built in 1972 and has not had any major upgrades since it was built and there is a plumbing issue going on. The realtor thinks she can put the house on the market for $140k and sell it as is.
I would like to purchase the property using the BRRRR method.
My current rental is worth $265K. We owe $175K. I would like to use the equity from the rental and use that as a down payment and closing but will also need about $25K for rehab. After repairs the house will be valued at $250K. How can I make this work?