All Forum Posts by: Allen Chaney

@Anthony Giannette @Pete Kelly @Chad Hotovec @Nate Nook Old thread but I thought I'd point out one I recently found. Housters. Has accounting with property separation, tenants can pay rent through it, request repairs, etc. Pretty powerful at $1/unit, $5 minimum per month. Imports transactions from mint import, csv, etc.

How long were those comps on the market before they sold? I'm guessing more than a couple weeks. It sounds like the area might not be in high demand based on the low number of comps.

Originally posted by @Kevin Hassold:

So when you say a 5 year fixed rate does this mean the rate could/will change after the first 5 years? And the term of the loan will be 20 years instead of the conventional 30 since its a commercial loan?

 Yes, after 5 years it becomes a variable rate, and it's scheduled to be paid off in 20 years instead of 30. That's why conventional loans are preferred over commercial.

From what I understand, LLCs have no effect on tax structure. They're for asset protection. If someone sues you, they cant get assets from the LLC and if someone sues the LLC they can't take assets from you. Unless you designate the LLC as an S-corp (might not be exactly the right terminology anymore), it will get taxed the same as a sole proprietorship (individual income tax and self employment tax) I'm new myself so I'm no expert, but that's my understanding so far. I'm going to talk to a CPA next week hopefully.

I've heard anything from 6-15%, but usually 12-15% is pretty rare. 7-9% is pretty common. I hear of lots of interest only for 6-12 months, some people make no payments at all for 12 months. It's pretty flexible. I'd start by finding out what their money would be doing if not investing in you. If it would be in a bank making <1% interest, pretty much anything you offer would be a great deal for them. 

@John Cushing If the rental isn't in an LLC, and you default on the personal line of credit, the lender can foreclose on any of your houses except your primary residence in some states. They could come after any of your personal assets if they so choose.

I'm currently using Housters and it's pretty powerful for new investors. It's $1/month/unit, $5 minimum. It has subusers for landlord/property management/tenants/vendors (think maintenance etc.) You can setup your tenants on it and they can make repair requests and pay rent through the app. It's a pretty powerful app for the cost. I hadn't seen any mention of it on the site and I wanted to share it with the community. I've switched from quickbooks to Housters because it has alot more features. @Brandon Turner

I think that lender is unfamiliar with the process. If you buy a homepath property, you're not allowed to sell or refinance above certain limits within 90 days. Other than that, I don't know of any seasoning that would apply. If you're wholesaling, you aren't closing the deal so unless it's a homepath, it should be fine.

I don't have much knowledge in competitive offers. I'd say to get a few contractors to estimate the costs, and run all of your numbers conservatively. Then take the (ARVx.7)-conservative rehab estimate  and make your offer somewhere around there. If you don't get it, just move on to something else. Don't fudge your numbers and offer so high that you risk losing money. 

Did I read that right? 1/1 and 1400sf? I would think it would be very easy to make it a 2/1, or even a 2/2 for a good value add. I probably wouldn't touch it myself without planning to add a bedroom. It's a shot in the dark without comps.