All Forum Posts by: Caroline Gerardo

Rural property not as much demand for renting a room as in a city. College students/people with job Mon-Friday in city/ people limited income rent a room. Whereas people in rural communities are often there for the space/acreage/freedom/gardening. After you close you can rent rooms but cannot use the income to qualify for the loan. 

Owner occupied property. An "area" does not qualify the actual address has to be in the map. USDA verify the address here: https://eligibility.sc.egov.usda.gov/eligibility/welcomeActi...

enforcement actions : https://mld.nv.gov/Enforcement/Home/

 You make it based on lease and what the appraiser determines is market rent minus a factor. You only need to qualify to close the loan. If is a commercial loan you have to keep the rents there in five years when the loan is due, assuming rates are the same or better. For example: Right now an investor whose commercial multi family qualified at 4 % in 2019 maybe cannot make the grade at 8% today so that investor would need to pay the loan down with cash to qualify or sell.

Under 8 units a 30 year fixed is available.

Over 8 the terms change and are often due in 5 or 7 years= commercial. Commercial loans are larger sales prices.

Heat no value add. Air conditioning in a climate where there is more than 30 days at 99 degrees a small add. 

Heat is assumed the baseline, normal.

Comparable sales is what determines a residential real estate valuation.

Ashish Acharya to be a property manager you need a broker's license depending on the state. Some states AK DE FL GA HI IL NV VI DC you also need property manager license which is 24 hour class, pass, and pay annually. Property manager's business income is different from personal. He wants to act as property manager to not appear to be the owner to tenants, you knew this when you answered. To achieve the "secret status" it's not easy- all accounting has to be separate silos. 

Your lender may or may not allow you to sell the property (quitclaim) to your single owner LLC but you have to reveal who the owner is, that conflicts with the secret status plan. Insurance has to match vesting, in many states insurance is a mess.
David mentions that he owner occupies 1/2 with another tenant and wants both himself and other tenant to pay the LLC. @David Shelby making this complicated in the name of secret status achieves zero. The title was closed in your name, the other tenant is going to know. Keep it simple and get an umbrella policy for extra coverage.

LLC property manager can't file in court the same as you as person, your liability coverage cost increases, any code violations are treated differently, your bank account cannot be not mingled...

If you are doing a loan the title company and the lender have to approve the notary. Home Surety in Memphis can get you someone Monday, everyone is closed for Easter today. 

So how much is your w-2 income and your total mortgage debt/car/credit cards?

@Rhett Kelton all the hard money guys I know will not do a loan with sales price under $200000 - and they want huge down payment