All Forum Posts by: Christian Bors

Rental income gets reported on schedule E. The income is consider passive and yes you should report your income unless you plan on visiting the big house. At the big house, they do not charge rent and there's no evictions lol.

Bryan Henry pretty late to ask for such a request. Even if it was next week, im not from your area so I wouldn't be able to help. However you should pick up the book on estimating rehab cost by j Scott. That book is perfect for what you are trying to accomplish. Good luck CB

@Taylor K. Is it just a tub?  Is there a shower?  What's the monthly rent on this property?  Is there more then 1 bath? I don't think an old claw tub would be a turn off.  Most tenants just want something clean and functional.   I use to way over rehab my properties.  Granite countertops, new kitchen & baths etc....I still to an extent over rehab but I realized my competition does very little besides paint and they basically depend the same type of rent.   

Very nice.  The crown molding makes it stand out, lots of lighting, great choice on the pendants, and always a fan of staggering tiles.  The light fixture in the dining area seems odd, but the house looks great.

@Taylor K. There are many options.  A picture would be more helpful but here are a couple of ideas

Cheapest option is a one piece surround, however they can be difficult to get inside the building.  They are typically used for new construction, but if you can get in through the door they would cost about 350.  I believe a 3 piece surround will cost about 100 more.  You can replace the window with stain glass, glass block, remove it (maybe difficult to match the exterior if its brick), or leave it as long as the neighbors cannot watch the tenant shower.   If you remove the window, be sure to install a ventilation fan.  A lot of bathrooms that have windows, don't have ventilation which is a recipe for mold.  In my rentals, I tie the light switch in the fan so the tenant does not have the option do not use it.   Also, if you keep the window you should replace the any wood trim with PVC trim so it doesn't rot.  

You could install a tub and tile the shower.  You can buy large tiles for 99c a sqft at HD, stagger it and it will look very nice.  Same options for the window (glass block, remove, or stain glass).

Also, depending on the shape of the current bathroom I would consider glazing the current tub.  It will make it look new for many years.  When you decide to sell, I would do the upgrades.  To glaze a tub would cost 200-250.  DYI glazing is messy and a pain but the cost would be like 50$.

I am not aware of a bank that will give a loan w/o income unless there are significant reserves or you have an extensive relationship with a bank. With that being said, most banks are looking for DTI (debt to income) of under 50%. LTV (Loan to value) is typically around 90% (I have seen banks willing to go to 95%). And a credit score of at least 620. Also, if you shop around it is very easy to find a bank that will not charge any fees for appraisal or closing costs.

To get over the hurdle of having no income, consider getting a co signer who does have a strong W-2.

@Lise Engel

Year 1

Invest $1,000 a month in direct mail and send out 1,000 letters

10 phone calls

1 deal

Wholesale 1 deal a month for the first 4 months @ 5000 profit per deal = 20,000

Total: 50000-4000+20000= 66,000

Flip 3 properties (1 every 90 days) for a profit of 30,000 each

Total: 66,000+30,000= 96,000 year 1 completed

Year 2

Invest $3000 a month (3,000 mailers a month; 36,000 annually)

Wholesale 1 property every other month at @5000 profit each deal= 30,000 gross 

Flip 5 properties (1 every 2.5 months) @ 30,000 profit each= 150,000

Total for year 2: 150,000+30,000-36,000= 144,000

Year 1 + Year 2 = 240,000 

240,000+ 50,000 (original investment)= 290,000

Seems difficult. You will need HML's, contractors, constant deal flow etc.....Is it impossible? No, but you would need to take massive action if you wanted massive results.

@Aleksander Dabrowski In my previous role with the bank, I used to write HELOCs. Personally, I would never use a bank that charged a fee for originating a HELOC. Many banks will run specials waving that fee or they wont have a fee at all. At my bank, we would accept a recent appraisal if it was completed within the last 3 months. However, I know there are some banks in my area that will accept an appraisal if completed in the last 6 months. My advice is to shop around at multiple banks or credit unions. And don't pay any fees! It would be throwing money away. Most banks and credit unions will have similar pricing, but I would stick with the smaller guy. Also, most banks will only allowe 85%LTV on second mortgages, however its pretty easy to find a lender who's willing to lend up to 90%.

@Andrew Miskovich  I would be cautious if I were you.  Portfolio loans will have different terms such as fixed for 5 amortized over 20 years.  Also, you can expect to pay prime + 1 on the interest rate.  Just make sure to re run the numbers using a short amortization schedule and higher interest rate.  Like you already mentioned, traditional financing will be out the window.  

@John-Delfin Skovira We are hoping to develop a website and a meet up page shortly.  But like @Jacob Gildea said, our facebook page is our go to stop for right now.