All Forum Posts by: Account Closed

Hi everyone,

I had a general question about setting up a line of credit as a secured second position on a property that I have some equity in.

Someone had told me that they had one set up for little to nothing out of pocket. I think the bank had something going where they covered the closing costs.

What I got from the bank today was $450 for appraisal and $200 for bank fee. I reached out to the attorney that I use frequently and their cost is $700.

Do these costs seem typical? LOC amount is $40k.

Thanks,

Andrew

Thanks for the reply @Will Fraser. I totally agree that I would rather use debt as long as the cashflow remains strong. 

One thing that complicates using the 2nd is that I'm partnering 50/50 to purchase the one that is undercontract. So the cost of my me "HELOC" would change the cashflow for my partner.

Any tips?

Hi Everyone,

I have a question about financing a deal that I'm under contract for. 

I'm debating on whether I should bring cash to the table, or let the bank put a 2nd on another property that I have some equity in. If they use a lien, does that work similar to a HELOC in that I will have a monthly interest payment in the amount of the 2nd?

Thanks,

Andrew

I just had couple "adjusted". Cost was $250 for each one. New rates are 4.00 and 4.625% on another. Both 20 year am, 5/1.

Airika,

Look at closed listings and see how closely they are aligned with their listing prices. This will answer some of the demand question. Ask your agent what the inventory level is and have them explain what that means. Inventory change over the past few months will be askew but past years of data would be interesting to see.

I think Greenville is a solid choice, especially if the numbers make sense.

Good luck!

Wow, looks great. Do you have any before pictures?

What are some things that you did that you feel podcasters and authors have advised against?

All great advice above. 

Getting started, I would recommend that if you were going to DIY, choose something that may be more cosmetic in nature. Stay away from major foundation work, major framing, etc. Learn the basics of plumbing and electrical trades. You don't have to become an expert, just learn the basics so you can have a somewhat educated conversation with someone about it. Learn what you like to do, and what you don't like.

In the long term, you will HAVE to rely on contractors if you want to scale. But if your doing a few a year, I would applaud you for doing things yourself.

Another thing I would advise, if you are going to take on a task that could cause harm, such as electrical, or HVAC, structural, etc.... make sure you take the time to educate yourself and make sure you do the task correctly. If you don't feel comfortable, either study it, or sub that portion out. There's a reason some trades require licensing.

2000 SF is small to have two separate systems, depending on the layout. 2-ton would be appropriate size - I believe. There are a lot of factors that play into this. (Age of home, insulation, door and window type, wall thickness, etc..).

$4100 is a good price for replacing the system. Should take them 2-3 days at most. I would assume that the old system uses R-22 refrigerant, and the new will be R-410 which will be much more energy efficient.

I would recommend getting a price from both Blue Ridge Heating & Air, and McGrady Perdue. New River Heating & Air, and A1 Heating & Air are also reputable HVAC contractors in the area.

The Heil brand is a safe bet. I personally like Ameristar for rentals. Prices on Trane and Carrier equipement will come with a higher cost.

Feel free to call me if you have any questions. 

-Andrew Weikel

Hi Folks,

I've recently purchased a commercial property located in an industrial park in the town I live in. It is a 1 acre lot with a 2000 SF building. My plan is to rent 1000 SF of the building and build a wall in the middle dividing my belongings from the person that rents the other side.

I wanted to reach out to see what some general thoughts were regarding, how can I keep someone from coming in and making a mess of the other side; i.e. working on greasy cars, spills, etc. Also, I see there being a lot less risk in renting the space to someone that would use it for storage vs a workshop or similar.

I appreciate your feedback and advice.

Thanks,

Andrew

Does it have one of these?

https://www.lowes.com/pd/Shelter-13-in-W-x-13-in-L-Black-Galvanized-Steel-Square-Chimney-Cap/1085387