All Forum Posts by: Casey Walker

@Cameron Tope Thanks,

Yes the goal is cash flow without exceeding 80% LTV.

I agree with you, "If it were me, trying to build up cash flow, then I would refi the duplex and use that money as a down-payment on another property to BRRRR and repeat the process. If you don't have another property identified (or aren't currently wanting to add properties to your portfolio) then I would payoff the HELOC."

Thanks

1. When to refinance?

2. What would you do if you where in my shoes, as far as refinancing?

3. Is there a set amount of time I have to have my units rented before I should refinance? 

I have two properties and four loans: 

My personal house is worth around 300k I have a mortgage for 120k and a HELOC for 120k that I used to remodel my personal house and my duplex. 240K total owed = 80% LTV. Monthly Mortgage payment including PITI =$1,200 on a 30 year loan at 3.75%. Monthly HELOC payment =$1,200 on a 20 year loan at 5.5%.

My duplex is worth around 300k I have a mortgage for 150k and private loans totaling 50k. 200K total owed = 67% LTV. Monthly Mortgage payment including PITI =$1,400 on a 20 year loan at 5%. Monthly payments on privet loans = $500 interest only At 10% these are one year loans that I would like to pay off as soon as possible. One side of the duplex is rented for $2,100 and the other one is rented for $2,400 = $4,500 in total rents.

Our goal is to BRRR the duplex and buy another one.

My thoughts are to refinance the duplex and use that money to pay down/off my HELOC but leave it open that way when I find the next property I can use that as my down payment.

Thanks for your time!

@ Pat L.Thanks for all the info.

I just kept my two unit as a two unit and then I didn’t have to add a sprinkler system. 

In addition to owning a construction business my Wife and I have a couple of rentals and we are very happy being landlords. My 61 year old Father has money in his TSP that he would like to take out and he would like to invest in our next investment.

My Question is how should he go about taking the money out of his TSP, he is concerned that a withdrawal would add to the taxes he has to pay now, he could wait to withdraw till he retires in 5 years and is in a lesser tax bracket, because he will be earning about half of his current income once he is retired.

What would you suggest the arrangement should be with someone bringing money to the deal?  

My thoughts are I would buy the property in my name using a bank loan for 80% and we would use his TSP money as the down payment. To keep it all simple and clean I just want to pay him a set interest amount on the money he puts in the deal.

Thanks for you help!

I dont want to hijack your post, i think my questions about the same topic might be helpful to you as well.  

I have a duplex in the commercial zoned area so i am free to rent by the night or however.  

One unit is a three bed one full bath with kitchen, living room and dining.  In my area with a normal rental this would rent for 1,000 a month.  I spent 5,000 on used furniture and everything needed for the bathroom and kitchen.  I have it listed on airbnb for 700 a month for each bedroom and im trying to cater to traveling professionals.  31 day minimum, to reduce turnover and for the other guests peace of mind.  I think the $700 is a little low and we plan on raising it as the demand for our space grows.  

Question 1. I set the listing for a $500 hold on their credit card as the security deposit.  And i have normal homeowners insurance.  What insurance does Airbnb provide to me?

Question 2. If someone books on Airbnb for 31 days and they later want to stay for another month should i have them book on airbnb (and pay the $70 fee) of just sign a one month lease with me? 

Thanks for your time.

My listing

https://www.airbnb.com/rooms/40487364?s=67&shared_item_type=1&virality_entry_point=1&sharer_id=313391191

Thanks everyone for your advice and taking the time to write. 

First showing at my first rental today.  

They seam like nice people but the guy mentioned how they just got a new puppy and i dont allow pets in my rental.  She shot him a look that was clear that he just said something that he shoulden't have.  They both assured me that the dog will be living somewhere else but i dont buy that.  To me the dog is a deal breaker but the only way to tell them that is to tell them that i think they are lying to me about where the dog is going to live.  They took an application to fill out and i explained the process of the credit, employment, conviction and eviction checks.  I dont want to wast anyone's time doing all that when i already dont want to rent to them based on the dog.  I feel like if i tell them its a no go right now they might accuse me of discriminating against a minority group.  I would never discriminate against anyone, i just dont want pets.  

suggestions? 

Thanks

Everything.  All they need is themselves, and money to pay the rent. 

I furnished one of my three bedroom units and im going to try renting out each bedroom on a month to month lease.  Does anyone have a month to month contract they are willing to share or maybe point me to one on this site?

Thanks for your time

Im a builder in PA and i think the price is in the right ballpark.  I agree with everyone else, you should get multiple prices.  

You provided some good information but without seeing the project we dont know how many feet of duct work, piping ect and we dont know how open the walls are to tell how hard the install is going to be.  

Always get three prices, and pick the best fit, not just the cheapest.