All Forum Posts by: James Lusk

@Tucker Cummings Also, I would second PenFed for HELOCs on rental property. They gave us excellent rate, terms and service. We were able to get 80% LTV, the rate is moot now as that was 4 years ago. You have to open an account and put a few bucks in but it has been well worth it as most others were lower LTV and higher rates.

@Tucker Cummings My wife and I have used a HELOC on one of our SFR rentals to fund multiple deals and it has been fantastic. We have about $180K that we deployed on a 12 unit, refi'd, deployed on a 16 unit, refi'd, deployed on a 220 unit storage facility, and are planning our next refi. Every deal we have done pencils out even if we were stuck making our HELOC payment long term. As long as you make sure you can afford to make the HELOC payment if you were unable to redo for a while, you should be in good shape. Also, I love knowing I'm not paying on the money unless we have it in a deal (which so far has been the entire 4 years we've had the line pretty much).

@Andres Fung Zhang Welcome to BiggerPockets. There aren’t really “standard” leases. Leases vary wildly from landlord to landlord, PM to PM. I suggest looking at a handful of local leases and seeing what you like/don’t like. Also, get with some local property managers to discuss what type of things to add/omit from your lease based on the area. Finally, I would pay the money for a real estate attorney to review your lease to make sure you aren’t breaking any laws and are covering your bases. 

Another thing to note is BP has leases you can buy that are state specific that we’re drafted by local attorneys. You could look into that.

Hi Henry. We use NRB Property Management and they have been fantastic. Randy Schell is who you would want to speak to. After having a bad experience with another property management, Randy’s team has been a breath of fresh air. They manage our 12 unit in Lakewood. Feel free to PM me if you need contact info.

Very cool Mellissa! Will this be your first multifamily build? My wife and I looked into it over in Tacoma for an 18 unit that has a blank pad next to it but the cost of construction here just seemed to be too high to pencil out. What do you project your all in cost to be on the project? Best of luck on this deal. Very exciting! Congrats!

I am also looking into Spokane for multifamily. I am attending the Addicted To ROI trip to Spokane that Jennifer Beadles is putting on in April. I'm not sure if there is more space available or not but that would be worth looking into.

Hey @Sherelle Montague. You mentioned you live in Seattle but are wanting to house hack a place in Spokane with 3.5% down. So you are looking to move to Spokane?

My wife and I heard great things about your last Spokane trip and bought tickets for this one. Looking forward to a weekend of learning and making connections! See you there!

@Account Closed What Mitchell is saying is what value are you adding to the deal? If you don’t have any experience or knowledge of the area, why would the money partner hand over 90k to you? A typically investor will want to know that you know what you are doing and are confident in the investment. 

I would recommend spending more time learning the market and analyzing deals so that you know for sure when a good deal is in your lap. Continue to ask questions and network. Then when that deal comes across your lap you will be able to confidently pitchl it to an investor.

Hi John. 3things right off the bat. 

1) I would personally budget more than $18k for rehab. Especially considering the 11 units are spread across multiple properties. Once you have an inspection you will have a much better idea of course but for now, I would lean more toward 3k per unit unless the owner has shared property condition with you.

2) I would definitely underwrite each property individually. You want to know that each property is giving you the returns you are looking for. Identify any that do not and offer on the ones that do, leaving the “meh” for someone else.

3) Make sure to consider the increase in property taxes upon sale. 

Hope this helps,