All Forum Posts by: Chris Bruni

While I am not a credit analyst or a banker, I do not think utilizing the HELOC would impact your credit score - you said, "killing your credit". I currently have two HELOCs open on two different residences and have tapped them both at the same time before (currently only one has about 30% of its potential being utilized). While I did not like limiting my flexibility while I did tap them both, I saw no impact to my credit score. But perhaps I am missing something in your comment?

HELOCs give you more flexibility (in how you pay them back) than a traditional amortized loan.  But you do have options and are in a great place that way.

Having just returned from a Hawaii vacation, this post caught my attention.

Depending on your comfort level with the ARM you currently have and prospective interest rates down the road, you may not want to refinance your current loan, although that is certainly an option.

For quicker cash without the major expense of a refi, I have found it very easy to get a HELOC (home equity line of credit) on my primary residence and use those funds to build investments. Many institutions will have very low cost options (just a few hundredt dollars) to get started and they can happen more quickly. You may also find that the first year interest rate charge to be very low (2% or less) and its simple interest so you can pay down the debt much faster than an amortized loan.

Keep in mind that there are financial risks no matter which way you go.

Having just returned from a Hawaii vacation, this post caught my attention.

Depending on your comfort level with the ARM you currently have and prospective interest rates down the road, you may not want to refinance your current loan, although that is certainly an option.

For quicker cash without the major expense of a refi, I have found it very easy to get a HELOC (home equity line of credit) on my primary residence and use those funds to build investments. Many institutions will have very low cost options (just a few hundredt dollars) to get started and they can happen more quickly. You may also find that the first year interest rate charge to be very low (2% or less) and its simple interest so you can pay down the debt much faster than an amortized loan.

Keep in mind that there are financial risks no matter which way you go.

Good discussion - wish I had responded sooner...

I have had good and bad experiences in distressed parts of communities and agree that it falls on the investor and involvement more than anything.  I am a DIY investor and licensed contractor so enjoy taking on most things myself.  Much more dificult to do and to stay on top of the maintenace demands if you have this mindset and are not local with your investments.  I have several that are up to 2 hours away and, while I do visit them fairly often and know each tenant, I certainly do not get to them as often as the ones that are 30 minutes away or less.  

If you want to manage your own and DIY the maintenance and updates, you can do that in any market - distressed or otherwise.  But being an absentee-owner, the original thread from Marcus will hold true more often than not.

I’m siding with you on this but agree that more communication is usually better.  My experience with new tenants has led me to err on assuming they know less than they should and try to give them more details.  

When I started 20 years ago it was to diversify my investment portfolio.  About 8 years ago it finally clicked that this would be my way to control my destiny and leave the W-2 world (retire early) at some point - which I was able to do in 2021.  

Thank you all.

For clarification I had sent a formal letter outlining all the expenses and what the deductions should have been but that I was discounting them some.  I was surprised by her response based on knowing her for so many years, but one thing I have learned about people over many years is that you just never know…!

Looking for a bit of advice here so, please, let me have it! 

Background:  I have a very nice, older duplex that is in a great neighborhood and has lots of charm and character - plus it's in very good condition.  A couple years ago I placed a tenant in there who I had rented to previously and had known prior to that experience.  This past summer when her lease was up we renewed under the pretense that she was shopping for a house and, if found, might need to vacate before the end of the term.  There is huge market demand in my area and I do not have any issues finding good tenants.

The issue came with her move out and the dates.  She kept me informed early on that she had an accepted offer.  Notified me that her closing was mid-December.  Also stated that she might not be out before Christmas.  I had told her that was fine as she had paid for all of December anyway.  Being out by 1/1 would be great.  As the dates got closer she indicated that she would not be out by 1/1.  I gave her til 1/3.  I had painters and new carpet coming those first 2 weeks of January and the house needed to be empty.  Also, I had a new tenant already lined up for 1/15.

She proceeded to waste time.  Most of her items were out by 1/3.  But it took her until 1/9 to complete be out of the house and the garage was still full of her items.  I continued to press her and finally informed her that any items still there on 1/14 would go in the trash.

On 1/14 she did get all of her items.

Now the fight is over the security deposit.  I notified her in writing of my withholds.  Because of all the work being done inside I did not hit her for not cleaning.  I also discounted the typical items like missing batteries and light bulbs.  I did inform her that I could withhold half of the deposit because she did not vacate the space.  But even there I discounted to only account for the first 9 days and kept about 1/3 of the deposit. 

She thinks she should get everything back and that I am now the devil.  All told she got $750 of an $1,100 deposit.

My ask of the community:   What would you do?  Should she get more back?  

Going to agree with the comments already made.  I have encountered this dilemma many times in the past few years when acquiring new properties.  Haven't really wanted to displace good tenants that have a long track record in their home (even if I did not own it) so have taken the incremental apporach.

Knowing the local market and telling you tenants where that line is does help soften the blow.  They can still shop the market and confirm what you tell them, but if you are only going up part way, they still feel ok with the increase.  An incremental increase for even the best of tenants is a good idea.  No one is immune to general inflation.

Vince:  Kristen gave you good advice.  Here's a bit more.  

I used to have a place that I rented out for short-term to medical personnel (not just doctors).  The medical facility I worked for typically brought in traveling nurses and, as Kristen mentioned, there are a few facebook groups that do specialize in this. 

I worked with our HR staff in the medical facility to make sure they knew that I had a place (was a community of only 23,000 so not a huge number of options for travellers).  I also worked with the local medical school as our facility was also part of their residency program.  They all appreciated the outreach and it paid off staying in contact with them.  

I did have some repeat tenants over that time (and at least one that I was certain would never be allowed back).  Overall it was a good experience until I sold that property.