All Forum Posts by: Blake Choisnet

Congrats!

What has been your experience with this type of loan? I've heard close times are longer and it's an administrative headache with higher origination fees, but can be worth it due to the rates and amortization schedule. 

 Great catch - we paint the ceiling white, not grey. I've seen some houses that are all one color inside but believe that it decreases the rentability, so I continue with the grey/white combo. 

Congrats! How much is it renting for? Are you cashflowing?

I recommend owning it under your own name but getting an umbrella insurance policy and requiring tenants to have renters insurance. My Umbrella Policy is for $3M and is something like $38/mo. You can get an LLC, but it's not required in the least bit. And also, if you move your property deed from your personal name to an LLC, you run the risk of the lender calling your note due. They tend not to do this on 'performing' (ie 'paying') properties, but it's still a risk you incur.

I paint the entire inside Repose Grey with New House White as the trim. It bounces light really well and gives a modern look quickly. In my experience, colors with a yellow/beige tone quickly date the property. 

Nice! Congrats!

REIA groups normally cost money to join and are VERY hit or miss on whether they're actually valuable. Try to connect with other RE groups in your area using the 'Network' tab in BP or searching for RE groups in your area on Facebook.

I recommend a CPA firm that has specific domain expertise in real estate. There's lots of them. I use this group in case it helps: https://hngcpas.com/

I recommend Option 1 and then moving to Option 2. Buy a house at 3.5% down and rent out the other rooms to your friends. That should at least cover the mortgage and you can start focusing on learning more advanced strategies while your friends pay for your mortgage. I recommend a 4 bed property because the difference in cost of a 3 bed and 4 bed aren't that different, but the amount you can rent it out for is drastically different because of the additional room.