All Forum Posts by: Asim Sheikh

@David Almasy - this all depends on how much time you'd want to invest upfront.  If you have the time to setup systems and processes to automate most of the management, as it can easily be done, then you don't really need a management company in the long term.  However, if you have a fairly demanding job, and don't have the time, you should likely look for a reputable company to help you with process, especially now that the demand has greatly decreased for short term rentals.

@David Esteban - start with running the numbers and let the end result be your starting point, before jumping into an analysis of factors such as population growth, job growth, market saturation, etc..

@Ivan Palagniuk - although it's usually not an issue, if you transfer a property into an LLC after purchase, you run the risk that the bank can call the note, and ask you to pay the rest of the mortgage immediately. You should speak to an attorney for further guidance.

@Nicholas Siena - run the numbers and decide accordingly.  Let the math make the decision on whether the investment is worth pursuing further.

@Brett Grimm - determine which interest rate is higher, and if the rate for the mortgage is higher, then put down a higher down payment.

@Kenneth Ciuchta - although not all HELOCs are the same, for the most part, you should be able to use it for a down payment on an investment property.  Depending on where you are trying to buy, if closing costs are not high enough, a cash out refi is also something to consider, as HELOCs typically close when lending becomes tighter, as was the case during the last recession.

@Shane Jewell - the only risk that I see is if the owner bought the home for more than it's currently worth.  I would get an appraisal or perform some type of market analysis prior to moving forward to ensure that the bank would loan you the amount that you are seeking.

@Carol Baker - look into FHA loans at 3.5% down. Although these types of loans may be tougher to get now, as the lending market is tightening, it never hurts to call several banks to find out.

@Savannah Kennedy - too much uncertainty and risk, too many variables at play, and no one can really say whether things will truly turn around, or whether we are in this for the long haul.  I am personally taking a "wait and see" approach.

@Austin Works - with the current CARES act that was just signed into law, I don't think we'll be seeing too many foreclosures any time soon.