All Forum Posts by: Allan Smith

That model is called build to rent and I have done a few single-family houses. You get a construction loan that automatically rolls into an amortized loan. All that is set in motion at the beginning so there's no refinance or anything. I always got commercial loans, but there might be a construction loan that rolls into rental and the conventional world. You could easily talk to a mortgage broker and have an answer in 5 minutes. Although those guys sure love to talk so it's probably more like 30 minutes.

In Tennessee and even in different counties with different jurisdictions, I always see piles of tenant trash at the curb. So most landlords just pay somebody to haul it out of the house so they can get the unit ready for the next tenant. The law is something like you have to keep it for 30 days in case the tenant comes back for it, in this state I mean.

 Your example of trading up to the 14 Plex is exactly what I want to do. The problem is prices have gone up so much the best I could do is sell my duplex and get another duplex. And in order to cash flow I would have to use all the net cash as a down payment and do 50 or 60% down just for positive cash flow.

As long as you execute on the scope of work that was sent to the appraiser, I wouldn't worry about it. I'm surprised they are doing two appraisals. I have gotten a lot of construction loans and they do the subject to appraisal at the beginning, based on what it will be worth once it's all fixed up.

FWIW, I realized my ROE is more like 6.5% because I have a HELOC on the property that I'm using

So let's say I want to use the equity for a better return. What are the advantages to selling vs refinancing and using the equity tax free? I do want to trade into better assets, but then I hate give up an asset that could continue working for me. I guess the replacement asset would just need to be that much better?? It's hard to compete with 2 properties cash flowing and appreciating: a refinanced property and a property purchase with that cash-out refi.

I have 40 rentals that I mostly bought 3 - 5 years ago and am really struggling with optimizing ROE. The funny thing is, I can't really trade up because even after properties have tripled in value, the better assets are also way more expensive and not affordable.

You could do Wi-Fi locks with no keys. But I think a better solution is a local person who is the gatekeeper. Probably a realtor who is looking for some extra income. You could keep the keys at a self storage place or something, and then just ask the realtor to check on the inventory occasionally or something. I've thought about doing something like this for my Chattanooga rentals.

Llc's taxed as an S corp are a great way to shelter taxes for flipping houses. The Sweet Spot seems to be from 100 to 250k per year in profit.  Talk to your cpa. You get what you pay for with free internet advice.

How do you plan to make money on it? If you plan to build, just remember that you still have to go get a construction loan so taking the land subject to probably won't work because the first loan will be in the way.

Arcana is in most states.

If the question is midterm or traditional, I would say a midterm should net at least twice as much as a long-term. This is mostly because it can be harder to keep the vacancies filled in, and overall it's just a lot more work. Plus you have the initial capital of the furniture and all that. If you go to furnish it, I think a lot of people tend to like the Ikea model where a bunch of furniture shows up in a box, then you hire somebody to swing by and spend a few days putting the house together. When we furnished ours we got a bunch of deals all over Facebook marketplace. We paid a third of face value of the furniture and it looks great, but it was a bit of a pain driving around town and getting large items.