All Forum Posts by: Carol Labbe

@Karina Santos how many months is that for?

@Scott Wolf I do believe it's closed, and if so, wouldn't another bank have the same problem? I would hate to have to go through the whole application and credit check to find out it's the same case. Sounds like I am stuck until this is over.

Two months ago we closed on a multi family property. We purchased using our home equity line (HELOC) on our own house. The plan was to purchase with our HELOC and use credit cards for repairs. We applied with our local credit union for a loan on the multi family. The intention was to use new loan to pay ours back along with credit cards. The loan should have only taken 2-21/2 weeks. We have used this credit union many times and never had any problems. Well, we still don't have our loan! The credit union is saying because of COVID-19 the title company they use has limited staff and cannot complete the title search they need. I don't understand this. There are plenty of loans going through. The city already has our purchase on file with book and page number. The credit union claims they continue to check on status, but nothing! It's all about the title company. They are the ones holding it up.

Has anyone had any similar situations occur or know of anyone who has?

We recently purchased a 2 family home. Our initial plan was to rehab and rent. But we are seeing how hot the market is right now and that when we are done maybe we should sell. We purchased for $90,000. We are putting in approximately $40,000. Taxes are currently $5,300 a year, but this will go up because as soon as the city knows what we are doing, they will raise the taxes. After rehab we can probably get around $225,000 or more.  If we sell, we pay short-term capital gains but get instant profit. If we keep, we will get monthly cash flow of around $400, but have to deal with tenants. I know if we wait longer to sell, it's more profit, but is it worth it to wait and deal with who knows what or do we take what we can get now?

Can anyone recommend a good contractor in Connecticut for heating? We need to have heating system installed. Even better someone who is also a plumber. Only licensed contractors, please.

Tomorrow we are purchasing a 2 family home. We plan on fixing it up and then renting it out. Any advice from other landlords? Something you wish someone would of told you when you were starting out?

@Courtney James. Be careful. I had a coach who for one basically just told me stuff I already knew and then the company she worked for was shut down by the FTC and therefore I paid for something, that is no longer available. My recommendations are to read Brandon Turner’s books and watch his webinars here on Bigger Pockets.

@Jennifer Pauyo Hi, Jennifer. I've been in the business for almost 3 years. In that time my husband and I have flipped three houses. We are closing on a multi family property tomorrow. Our goal is to fix it up and rent it out. Going to try out the BRRR method.

@Cameron Lam. I have a couple of questions.

1) Are your rooms rented to separate individuals as a separate lease for each? If so, is that considered a boarding house and are there special requirements for that?

2) Do you have enough parking for all of the room renters? Or do they mostly not have cars?

@ Richie Thomas you seem have a good grasp on the knowledge it takes for rentals. I also tried to bring my costs down, but I know my numbers when it comes down to taxes, insurance and water. The taxes are high, but I live in the "taxation state". As for insurance, I already got a quote for $2136 a year and that is bare minimum, so I rounded up. As for water, I know that my own family spends about $1000 a year - that expense can be reduced a little. And I have the loan in for 25 years because that is the maximum payback period for the heloc. Regular loans for investment properties are even shorter terms. The 30 year loans have higher interest rates, points and fees. I was wondering what to do about the CapEx and Repairs because there shouldn't be much since we are planning on making sure everything is in good condition before renting. Our rehab costs are mostly associated with separating out the heating system. Right now, there is only one big old boiler servicing the two apartments. And one 40 gallon hot water tank. The house has been used by only one family for many years. We also need some electrical done.

Thank you for the input. Sounds like you are doing your homework before finding your first property. If we decide to do this, I will consider a property manager.