All Forum Posts by: Angela A.

Anyone have opinions/experience with obtaining a conventional loan with a bank vs. credit union for rental property? Pros and Cons? Are there better interest rates or amount of loans with one vs. the other? Speed of closing? Thank you. 

@John Daley

I hear your pain.  Property management is a major piece in a buy and hold investment that can make or break even a good initial investment. Like you said, there is a conflict of interest between the property management company and the client in gaining profit which makes it difficult. If someone can figure out a detailed business model where reaching the same goal is mutually beneficial, it would be highly profitable from both standpoints. Something to look into? Maybe you could pave the way? 

Let me know if you find any good ones. I'll let you know if I find one too. Thanks for your feedback!

Hi @Leanne Rivard

Yes, Colorado is like CA in that appreciation has been insane and am not sure how long it will keep going. I'm in one of those more cyclical markets where there're boom and busts vs. the rather slow and steady appreciation in other parts of the country.  Hence I've been looking in out of state markets for more cash flow and possible steady appreciation. Not really good here for buying strictly for investment especially with the time line I have, unless I was planning on living in it in the future. 

My thinking about the cash flow is that if the price point is low enough to be able to payoff the loan in the not too distance future, even if it's only cash flowing $200 presently, once it's paid off, you'll have an asset that increases your net worth and your cash flow will increase once it's paid off with less mortgage and hopefully inflation of rents. 

I'm glad I started this thread as I get more ideas and support from my peers trying to do the same thing. I like all the feedback I am getting from everyone.  Best wishes to you!

@Scott Walker

I see that there are advantages of getting your real estate license for your market as you can get greater access to information through the MLS and if you do a transaction, you can save on commissions. I was also thinking about that, too, but was wondering about the costs and time involved in maintaining your license and other drawbacks. Do you know of any other pros and cons regarding this as an investor?

Best wishes on obtaining your RE license and your endeavors!

@Scott S.

That's great that you picked up your first rental property! Fortunately, with RE and based on the numerous posts here, you can start later and still do well depending on your situation, doing due diligence, your risk tolerance and strategy.  i was a little wary until I asked the original question on this post because it seemed like most of the podcasts were from 20-30 year olds or people that had started in that time frame.  

I think I have to agree with your wife as I'd be a little leery about having strangers living in your home after being used to having a home to yourselves after all those years. I tried managing my first 2 properties that I obtained 15 years ago, but then got tired of trying to collect rents and handling the turnover and screening tenants that it wasn't worth my while as I was also working fulltime, so I got property management to do the work. 

As far as notes and lending in an IRA, I was also thinking of that in that it may limit the possibility of being put in the situation where you run out of funds if you purchased a rental property as a buy and hold and needed extra funds to repair or maintain the property for whatever reason. Maybe I'm thinking of it too simplistically, but my line of thinking is that with purchasing a property in a SDIRA, you would have to ensure you had adequate funds for anything unforeseen since you can only use the funds in the IRA to make repairs or to contribute any funds needed for the rental property. With notes, it seems like you just collect the interest and if there's a default, you confiscate the property as collateral. Anyone have anything to add to this?

Thanks @Bernard Reisz. I just listened to a video about SDIRA's, realty trusts and LLC's and all the tax consequences and legal ramifications. Will study it further. Will ask you if I have any questions.

@Robert Nason

I purchased a couple of rental properties about 15 years ago and still have them, but haven't done anything since. Now, I want to get back in the game and was wondering if it's wise to get back in, but apparently with all the posts, it seems like it's a go with all the different strategies and opportunities, so I am excited. I just have to do my due diligence and proceed accordingly as time is less on my side. I agree, one of the motivating factors is taking advantage of low interest rates as it is anticipated to rise and if you get a good low fixed rate, when inflation really hits and rates rise, you can potentially increase rents while your payments are fixed. Of course, if you have an excellent tenant that you don't want to lose, you may maintain the rental rate in exchange for  retaining the tenant who pays on time, does their own minor fixes and is overall low maintenance. 

Hi @Larry Fried

Thanks for the tip about the selecting the names from the dropdown. 

As far as articles, are you referring to articles on your website? I visited it but am not sure exactly which articles. If you could clarify, it would be helpful. I am new to this site, so I am still learning to navigate. 

Would be interested in your results. Thank you for your help.

@Robert Nason

Congratulations on the 30 units in 5 years. Are they apartment buildings/smaller multi-families or SFR's? I was thinking the same thing about interest rates as far as it being historically low and even though people talk of a possible peak in housing prices, if you're in it for the long term, seems like if you can get a semi good deal, with good cash flow and can hold on for dear life, then you may do well especially if interest rates go up and opportunity is lost.

Thanks @Larry Fried, I learned something new. I've seen syndication tossed around a few times, but never looked into it and now I understand. That's a great symbiotic relationship amongst the participants. Has it been working out well for you? Have you run into any major downfalls in this type of set up?