All Forum Posts by: Chris Allen

Quote from @Anand Acharya:

I am looking for a property manager or management company to manage my rental in the Killeen TX area. 

Appreciate your help.

Thanks,

Anand.

 I just sent you a message. 

@Malcolm Kruger I just sent you a connection request, I live in Temple and own in Killeen, Temple and Belton. Would love to connect. 

@Bryant Brislin I also invest in the areas in TX he listed. Would love to be added to any deals you might have as well. 

Quote from @Andrew Geier:

Quote from @Andrew Geier:

View report

*This link comes directly from our calculators, based on information input by the member who posted.

So im definitely a newer investor and i got my RE license to buy my own properties. I wanted to get some opinions on this deal and another I currently have under contract. My primary job is a traveling PICU nurse with my wife who is also a travel nurse. We are saving money to invest in real estate and so far have closed on a SFR. Looking for some opinions on how we are doing with this deal and another I'll post. I do analysis on my deals but wonder if there's more i should be looking into. Would love to know how others analyze their deals.  

https://www.biggerpockets.com/...

This is the other deal link. Any help is appreciated, thanks. 

Hey there Andrew, I am a nurse as well, so glad to see you here! I just skimmed over your reports, and they look like great deals if you are getting that cash flow and ROI. 
- What type of properties are these and how are they rented? The first one is pretty expensive and has really high rental income?
- May consider setting more aside for vacancy, repairs, etc...
- On the first property, are you actually having to pay for water/sewer and no other expenses or is this also billed to tenants?

Do exactly what others have mentioned. But it sounds like you are in a decent location. As a travel nurse, I normally look to stay within about 30 min of a facility (ideally 20 min, most nurses stay 15min). So you have at least two facilities within 15, and a level I less than 30 min. So if the two hospitals have needs, then you are perfect location for them, and if you are competitive on your pricing and have a great looking property, then you are likely to get some hits from the Level I as well. 

Quote from @Jay Hurst:

Quote from @Chris Allen:

Quote from @Jay Hurst:

Quote from @Dave Skow:

@DeMarcus Hogan- 1) refinance to a conventional cash out refinance loan ...if value is 220K - new loan amt will be approx 176K ( 80% ltv) ....2) get a HELOC in place for the max limit after the cash out refinance is completed - this is likely to be 22K if you do the 80% ltv refinance

 Not allowed in Texas. Can only have one cash out loan at a time. 

I don't believe I have heard of this requirement in TX? I have heard you can only have one FHA loan out, but with a cash out, I was under the assumption you could do multiple (this would make the whole BRRRR strategy difficult). I have done, and had, two "cash out" refi's where I just pulled enough out to cover my closing cost in the refinance. These were conventional in my name.

 @Chris Allen You can have only one cash loan at one time on the same owner occupied property. In other words, on a owner occupied property you can do a cash out first lien OR a second lien cash out like a HELOC, but you cannot have both. It has nothing to do with if the loan is FHA or other. and it has nothing to do with properties you are not living in.

and cash out is only if you walk away with funds, not if you simply roll closing costs into the loan. 

 Makes sense, thank you for the clarification. 

Quote from @Jeff Grant:

I have a recently rehabbed 4 bedroom pool home in FL and wanted to know if it was too large to capitalize on as a medium term/travel nurse rental. Is there a market for larger properties? I haven't furnished it yet and was intending to make it a long term unfurnished originally.

 I would have to agree with @Conner Olsen and @Nathan K.. @Mike Swenson idea is great if there is a demand for individual rooms, but that is very location and demographic specific. I am a travel nurse as well and have even done a poll on some travel nurse pages I am apart of asking what people like to rent (1-2 bed private house vs private room in shared house vs 3-4 bed private house). The overall majority of people that voted said private 1-2 bed. I myself travel with my wife, 5mo old, and our dog. Ideally we look for a smaller, affordable, private place. 

Although I will say before I got married, I was renting rooms and I have a few friends who travel together, so they look for larger properties and just split the cost. But like they said, there are plenty of other people looking for housing like that. Just do some research for your area and try out different methods. If regulations allow, maybe do an STR? I believe you can duplicate listing to where you can list your property as individual rooms or the entire place, and then just sync the calendars and try out both.

Quote from @Jay Hurst:

Quote from @Dave Skow:

@DeMarcus Hogan- 1) refinance to a conventional cash out refinance loan ...if value is 220K - new loan amt will be approx 176K ( 80% ltv) ....2) get a HELOC in place for the max limit after the cash out refinance is completed - this is likely to be 22K if you do the 80% ltv refinance

 Not allowed in Texas. Can only have one cash out loan at a time. 

I don't believe I have heard of this requirement in TX? I have heard you can only have one FHA loan out, but with a cash out, I was under the assumption you could do multiple (this would make the whole BRRRR strategy difficult). I have done, and had, two "cash out" refi's where I just pulled enough out to cover my closing cost in the refinance. These were conventional in my name.

@DeMarcus Hogan Here is what I would do. 

- If your rate is similar to the current market rates AND you want to free up your FHA loan to use again, then I would do a refinance on the lowest amount you can and then immediately get a HELOC on remainder. So it would look like a $106k Refi and a $70-81k HELOC.

- If you rate is much lower than the current market rates, OR you don't NEED your FHA loan soon, then just get the $70-80k HELOC and keep your low rate FHA.

Quote from @DeMarcus Hogan:

Hello newbie investor trying to reach financial freedom. Bought my house with the FHA program. Fixed it up from 148k to 220k value. My plan is to do a cash out refi, possibly take 65k to invest in properties out of state and slowly build cash flow. How can I maximize money and reach my goals? Any help is help. Please and thank you.

 How much do you owe on the property and what is your mortgage? Are you House Hacking?

Depending on your situation, current interest rate, etc... I would think that maybe holding off doing a cash out refi might be a better option. To pull out $65k you would be keeping a high leverage at high interest rates would likely make your monthly payment go up. Affecting your cash flow on this property and/or your living expenses and saving rate. 

I would suggest looking into a HELOC. Depending where you live, you might be able to do an 85% LTV HELOC. So based on your numbers, you could get a HELOC for about $39k (not including fees, assuming $148k loan). This would not affect your monthly payment unless you pull on it. You can use that cash on a down payment and then just work on paying the HELOC off and you can reuse it again.

Quote from @Judy Jacobs:

My husband and I own a house with my son and daughter-in-law. It's in an LLC . We plan to do MTR to visiting nurses for half of the year while we travel and rent one room out to a visiting nurse during the six months that we are there. Do we have to pay rent to the LLC for the months we live there?

 I am not an attorney or an accountant, so I would say that you will likely need to consult them on this issue. But here are just a couple of thoughts I have.

- Is your LLC on the loan for the property? I believe most lenders that lend to LLC's on investments have something saying it can not be your personal residence. So maybe double check this?

- Not sure the legal/tax implications for this if you are living at the property not paying rent. You might be intentionally creating a business loss on the taxes that might run the risk of getting an Audit?

- I would think the most appropriate way to do this, if the LLC owns the property and is on the loan, is for you to pay a "fair" rent to your LLC with a lease in place basically giving you permission to sub-lease the property when you are not staying there. That way you are putting some separation between your personal assets and activities from the LLC's. Have heard of some LLC's being worthless for asset protection if you intermingle personal and business finances. If the loan is in yall's personal names and LLC is just on the deed, then I think maybe it's not as big of an issue since the mortgage is likely listed under a personal residence. Only hesitation would be how is your son and daughter-in-law tied to this when there is less cash flow when yall are living there.