All Forum Posts by: Andrew Brown

@Kahleah Manigault

Congratulations on the new investment!! I’m in Cali and bought my first rental at 27 and now working on #3. In some sense it does get easier from a preparation standpoint.

I wouldn’t mind investing with you in that area down the line.

@Stephen J Davis they have other forms of income, with the rental income the main driver. They do qualify to take the money out.

Hello BP Family - 

I have a client that is in a financial predicament. They own rental property valued at $700k that is 100% paid off. The rental income is their retirement income. I would like to know if anyone here in the community has taken money out via cash-out refinance to use for personal reasons. My client only wants to use a $100k towards very important bills but do not want to sell due to the cash flow the property produces.

Thank you

Happy Thanksgiving BP!

This question is specifically towards Realtors but I do welcome all to comment as well. 

You and another agent are working with a VA client whom your partner referred the loan to one of your lender partners, wants you to write up an offer for a property that he 100% intends to use as an investment property (he told you this specifically and even has a tenant in place). The issue, he is using a VA loan and asks you to write it up as if it will be owner occupied. VA loans are only intended to be owner occupied and not investment Property.

What would you do? What if you are not the Realtor of Record on the purchase contract but you are intimately involved in handling all the disclosure paperwork / escrow etc..what would be your moral and legal obligation then?

@Todd Rasmussen when?

@Matt Jackson do you mind sending me that contract?

@Gerardo E. Saldana - I live in Lake Elsinore and for me, investing in a property has to fit in my overall plan first, which is to leverage home occupied homes to turn them into long term rental properties. Ex. I bought my second home and it was a steal. Prior to refinancing, if I were to rent it out at market value, I would only get $100 BEFORE an expenses (which are minimal). After the refi, it freed up an extra $200. In case of an emergency, I can utilize 0 interest credit cards, short term loans etc. that would help keep me going until I am able to get back on track. There is not way to eliminate risk, however you can greatly reduce it by doing (3) things in my opinion: 1. Stay Educated - which includes learning the EVICTION process. 2. Keep and maintain a maintenance schedule. 3. Gather your resources and create a system for success.

@NAZMUL HUDA yes both my properties are in Lake Elsinore and there is a ton of value. For example, a modem match of my 3/2 rental that I purchased for $208k just received a full price offer for $275k, pushing my value closer to $290k. Best part, is that there are potential sellers looking to unload for about $250k.

@Natalie Schanne I would really love to pick your brain some more about your strategy. Renting out rooms in a larger home probably won’t fly with my wife unless it was a friend (but I have thought about it lol). The other thought I had was to purchase a large home that has a separate living space (in Cali they call them multi gen suites) and do it as an off market so I represent both sides of the transaction. These homes can be had for about $450k-$500k

@Natalie Schanne thanks for your response. My first tenant was a personal referral and I knew she was going to take care of the place and unfortunately she only lasted 7 months but made it very easy for me to get in a new tenant without any issues. My new tenants are very well qualified and they are perfect.

Downsizing from a 3/2 to 2/1 was ok with my wife because it was less space for her to clean and my kids are still young. It was a strategic move and I got this home as a steal so it was worthwhile. Moving forward, I won’t buy anything less then 3 beds.

As far as financing, we did utilize 0% interest credit cards and we kept shifting it after the intro period was over until we were able to pay it off. Despite my wife not having any income at the time, her credit is over 800.

I have home warranties for both properties and I have a team of affordable handymen.