All Forum Posts by: Brenda Whittaker

It's crazy.  This was a solid tenant who lived there for 6 years.  All of a sudden I stopped getting rent, drove the two days to get there and found the place completely destroyed, for no reason.  I'll never understand the people on this planet.  It's actually made me feel like liquidating and driving a taxi. 

This is what happens when you don't live close enough to do regular checks on your rental, and don't hire a management company either.  

I have bought and held several properties in another state that is a two day drive away.  I did not hire a property manager and I unintentionally neglected the properties because they are so far away.  Tenants destroyed my homes, vandals also destroyed the homes, tenants had dogs they were not allowed to have because they knew I wasn't going to check up on them, I also found 5 stinking satellite dishes damaging my roof when I did go there, contractors ripped me off, it's a mess.  Im selling them off now, and lesson learned, hire a manager for buy and hold, or if flipping, you better have the ability to travel and stay there for the duration of the project.   I held mine for 9 years and had to re-renovate them several times due to terrible tenants and vacancies.  

Looking into flip financing, so far I like Realty Shares, does anyone have experience with or know anything about them? One specific question is, they will only lend to an entity, so is it worth setting up an LLC in order to do business with this lender or would it be better to find another lender. I dont know what advantage an LLC would do for me other than this.

I took out a HELOC to buy a rental 8 years ago, unfortunately it's adjustable and has risen 6 times in the last 7 months. I am bailing water but the flood is faster. This is complete insanity. I have no w-2 job, just stated rental income and equity in own home and in rental. Is it possible in your professional opinions to find a 4% or lower loan against a free and clear rental, 40% ltv short term or a second on a primary? I will sell the rental when the lease is up, less than a year, then I can pay the HELOC or reinvest but really really want to get rid of this adjustable, Im being financially waterboarded.

I cant sell my home.  I love it and it's perfect for me.  I want to unencumber it and live in it forever.

Thank you everyone!  @Dave Foster , very curious, your last statement here, conversion into primary residence?  Can you clarify that for me?  What is available every 2 years?   I have 2 unfortunate mortgages against my home I should never have taken out, (borrowed to invest in rental property) now with very very low income from rents only and no job, I am afraid of not being able to have a free and clear home anymore, my goal is to get rid of those 2 mortgages as I cannot afford them but I have 2 free and clear rentals that I have owned for 9 years.  I'd like to sell one and pay off at least one mortgage, so is there a way to do that and avoid most of that capital gain?  Better would be to take the cash from a sale and reinvest but I am lacking the confidence to risk all that cash, after being clobbered by bad real estate investing thus so far.  Thanks for listening. I gotta get out of these mortgages.

So, what is the best way to deal with capital gains?  How can we at least minimize them?

Hi Nathan, the acquisition is $125,000 and ARV comps are triple that. It needs roughly $50K renovation although that's without seeing it, if there is more storm damage than what I know about my guess is up to $80K. Im traveling there next week and will check it in person with an inspector. I have about half of that 15%, comfortably.

Thanks so much!

@David Faulkner  Lol thanks for the chuckle.... its on the east coast.  @Christopher Phillips I am looking for flips right now however this might make a good vacation rental.  Not a live in, although I can live in it for a while if it would help, I know there are finance programs for owner occupied.  IT needs substantial cosmetics but has sound structure.