All Forum Posts by: Bonnie Low

I am a Nutritional Therapist so I love to work with people to help them get healthy whether they're dealing with chronic conditions like Diabetes or Autoimmune conditions or just trying to lose weight. As much as I love real estate, helping people become healthy is my true passion! Like a lot of investors, I have multiple income streams, and health coaching is one of them. I also am a trail runner, mountain biker, I love stand up paddle boarding with my dog, we have a small farm and raise our own meats and I have 2 grandsons that keep me busy! 

I loved seeing your details on this project. Congratulations on having the tenacity to land this deal - most people would have given up! We're currently looking into Lincoln, NE based on some conversations I've had with friends who live there and a local Lincoln Realtor. I'm curious, though. I'm not seeing a lot of mention of Lincoln on BP. It hardly ever comes up in my keyword search. What are you experiencing? I'm actually looking for an up and coming market and Lincoln certainly seems to be that. I want to go where other people aren't yet. The one thing that concerns me is the high property taxes. Otherwise, after analyzing dozens of potential deals and looking at rents, cash flow seems achievable. What am I missing?

@Gary Coop check out Real Estate Old School on Instagram. He has done exactly what you're talking about and has been a guest on several BP podcasts, including one in recent months.

Can you get a really great deal on it? Can you use the non paying squatters as leverage to get it for a drastically reduced price? Chances are the current landlord wants to get it off of his/her hands so you could actually be doing them a favor. If you have enough cash reserves to weather the uncertainties of this economic situation for several months and pay for the eviction process, it might work out to your benefit in the long run. Then again, what's going on in the neighborhood that allowed the squatters to settle in in the first place? If it's a D class neighborhood, you might have trouble with future tenants as well.

How much more expensive is it than similar properties? A couple thousand or considerably more? If you're going to hang on to it as a long term rental, it won't matter. It will even out over time. But if you're banking on short term appreciation or planning to sell any time soon, the comps could hurt you. If the numbers work for whatever your business plan is - that's all that matters.

@Kyle Hazelwood - almost all of the creative finance deals I've ever heard anyone talk about have come from local banks. I'd call all of them. Tell them what you want and if they say they can't do that, ask them what they CAN do. You might be surprised.  Good luck!

Hey, @Kyle Green - don't assume you can only have 4 mortgages. There is REALLY inconsistent information out there on this topic. Some people say the individual limit is 5. Some say 10. Bottom line is to work with a lender who can help you maximize whatever THEIR limits are. Then start getting creative. Are you married? Put the titles in each of your names individually - don't hold them jointly. This is another way to max out the number of mortgages you can have between the two of you. Then start talking about small portfolio loans where you roll a few of the properties into one master loan product. There are definitely options out there. Work with a really smart lender who will work with you and understands investors. I highly recommend @Jason Wray with the Federal Savings Bank. I have no affiliation with him or the bank, but he's helping us with a refi currently and he has been fantastic to work with.  Good luck!

Here are a few things to consider. Most banks aren't doing HELOCs these days so you have to work a little harder to find one that is. Either go through a trusted lender who can do the homework for you or search out smaller, local banks. Interest rates on HELOCs are usually going to be higher and they're typically loaning only 70% LTV, 80% if you're really lucky. Make sure you account for appraisal and closing costs on your HELOC. You'll want to compare that to doing a regular mortgage on your second home. Your interest rate is going to be a bit higher on a non-owner occupied property. However, you'll at least split closing costs with the seller, or negotiate the seller to pay for all of the closing costs in which you save quite a bit. In this uncertain economy, I think I'd keep my primary paid off so you always have a place to call home if it really goes south. And, if you're not trying to grow a real estate empire, you probably don't need to leverage your primary residence. Let the risk sit with the 2nd home and hopefully you get a good enough deal that the family members can cover the mortgage and expenses on it while you sit back and wait for it to appreciate and simultaneously reap the benefits of loan pay down. Just my 2 cents.

I think you answered your own question, but I understand that it helps to have a place to get it off your chest. You said you're in a toxic relationship. REI isn't at the root of what you're talking about, but being stuck in a toxic relationship is probably going to prevent you from being successful in anything you choose to do, not just REI. Take care of yourself, please. Even if you have to make the hard decision to leave. Sending some good vibes your way because it seems you could use some.