All Forum Posts by: Andrew DeWeerd

@Mark Albini I've contacted a few local CU's, and many local banks, they all don't have the HELOC product on investment properties, and on investment property refi's go by the Fanny Mae regulations which allow 75% LTV based on the original sales price after 6 months ownership up to 1 year. Unless you made major improvements to justify using the appraised value. After 1 yr they can use the appraised value.

Hey BP! I am looking for any competitive lenders who are still offering HELOC's on investment properties? It seems like most lenders have pulled back and have restricted this to primary residences only now. The purpose for looking for a HELOC opposed to a re-fi is the flexibility of pulling money out in draws, and the low fee structure compared to a re-fi with closing costs and greater points. For example I was in process of getting one with 5/3 bank at 80% LTV, at prime to prime+0.7% and only a small few hundred dollar fee, but they literally JUST shut that product off on investment properties. I believe Wells Fargo and others have done the same. Is there any other major players left that will do this at competitive costs? This is on a BRRRR property that I've had for just 4-5 months now in Bradenton / Sarasota Florida

Wow 6 this year, you're taking massive action Bernard!! I'm up to 5 units and completed my first flip this past year. I've been reassessing the market the past year really, not finding the deals I want on the MLS and have really shifted to sourcing from wholesalers, but even those are difficult to get at a price that works for me. But I've been able to get some experience at BRRRR and flipping to put in my toolbelt along with the standard buy/hold rentals.

Nice find Bernard!  I passed up on a similar pair of triplex in Palmetto like that 2 years ago, been kicking myself since! How many have you acquired since you first posted on here a year or so back?

@Bastian Kneuse

I have had a nightmare system that leach field was COMPLETELY blocked by roots, etc, and didn't know until 2 months after renovations completed and tenant placed, and thousands of dollars replacing the drain field pipes later... in hindsight I definitely would include getting this thoroughly checked in due diligence before purchasing, I never thought twice about it before. I wouldn't exclude it as a criteria for a SFR, but just calculate it in and use as negotiation tool. IMO.

@Bernard Sanga Hey again!  I've also got folks in Bradenton that i inherited who paid cash, and others who were and still pay via money order by mail.. When I put them on new leases, I indicate that they'll get a $50 rent break to pay by the 1st of the month, and pay via Cozy.co.  If they don't do this, then they won't receive the $50 rent price break.  

I think it's all about incentivizing the behavior that you want.   And of course, there is a penalty for late rent as well.  

I found it also helps to explain to the tenants the benifits of using the FREE software.  No trips to the local Wynn Dixie or Amscot, saving the $2 or $3 fee each month to get the money order created and mailed, and the $50 price break.

@Bernard Sanga your primary residence and itemizing deductions towards trying to exceed the standard deduction is totally different than writing off items on an income property, they’re in different sections of your taxes. Your CPA knows this, but sounds like you’re learning this bit, as we all do when we start investing. Think of it like you have two different sections on your return, one for your personal income, and another for other business income (your rentals)

@Paul D. Hey there - There is a bit of a forgotten or hidden niche that I'm currently capitalizing on. Look for SFR's with auxiliary dwelling units. They are basically duplexes where you are Not compromising on your primary home size and space as you normally would with a duplex, I am currently doing this but I am living in the smaller unit which is a 2/2 and the primary home completely pays my mortgage and all expenses and I'm living for free. If I did it other way around I'd have to pay about $200/mo total. Search Zillow, etc, for mother-in-law suite, second house, guest house, etc. Ben Laybavich calls it luxury house hacking. I know especially in Saint Pete there seems to be a lot of places with ADU's. Another avenue would be to live in the main unit and use the guest unit as an Airbnb

Hey! Did you ever buy this, and how did it all work out?!

It doesn't appear that individuals who own rentals in their own name can apply for this SBA loan, is that correct?