All Forum Posts by: Aidan Mulligan

Cozy.co will collect applications then run a background and credit check at the applicants expense. I've used them several times and the information is very thorough.

Location: North Carolina

Background: I have had a tenant in place since June 2019. They have always paid on time and been responsive with the exception of December and January. They just messaged me and told me they bought a mobile home and will be moving out at the end of next week. Per their lease they are on the hook for some fees but I am afraid they are going to move and cut contact.

Question/Help needed: I understand the NC small claims court process. What I'm unsure about is how to decide when I should file. I want to give them a chance to pay their fees but the lease does not specify a time frame and their isn't any information on the court guides. Going forward i'll make sure a time frame is in the lease but how would you all go about this?

@Basit Siddiqi thank you for the comment but Stessa is not accounting software. It's a property management site that tracks all sorts of expenses and one of the features is that it creates an end of year summary for tax purposes based on your income and simple expenses.

Stessa has the option to input depreciating expenses, with the useful life and the in service date, into its transaction page. However, as the site is set up right now it merely logs it but not in the way that is useful for taxes.

I use stessa to track my transactions both incoming and outgoing. At the end of the year there is the option to download a tax report that includes and income statement, net cash flow, and capital expenditures. I can't seem to figure out how to include the home depreciation in those numbers so that my tax amounts are correct. Please help.

@Gibran Saliba

Use 4-6% of the purchase price. There is no way to determine this based on the property but I've found that it's usually in that range.

@Will Hanson

Credit is built through history so there is no fast tracking. The best thing to do is use the credit card and pay it off right away each month and wait.

@Account Closed No, your realtor was referring to the realtor fees that are typically 6% paid by the seller. Closing costs are associated with lenders that charge a fee to lend you money. This covers the paperwork that the bank has to do. The document company will also charge a fee to get all the closing documents in order like title search, contracts, and legal documents.

@Dan Kelly Jr

FHA doesn't do new construction. Your best bet would be to find a tri or fourplex that needs work, get an FHA 203k, then do a live and flip.

@Francisco Gonzalez

Closing costs should be between 4-6%

Down payment should be 20% for most banks and hard money lenders

Interest rates for investment properties are typically higher than the average private residential. Use like 5%ish

The ad says 700/month but you have $1400 monthly income, should be $2100

Expenses seem good.

@Samuel Shaw

Cash, Hard Money, or Private money are short terms options that provide cash faster and easier than banks. Typically you won't go through the whole underwriting process that banks require. Banks also require 6-12 month seasoning before they'll refinance a loan. The first three options will do loans as short as three months then allow you to refinance and pay them back. Banks also won't loan for rehab projects which is an essential part of the BRRR process.

With a cash out refinance the bank will typically lend on 80% of the homes value. Meaning that you'll be able to get a loan for more than you put into the house because of the rise in value due to the rehab. You'll have enough money to pay back the short term loan and then some money to put into your next deal with another short term loan.

If you go the conventional 20% bank mortgage then you're money will be tied up for 12-24 months.