All Forum Posts by: Chris Nelson

@Ashlee Shipley regarding St George, they've historically has some issues/restrictions with nightly rentals. You'd want to google for the latest. The city council has had back and forth debates about it the past couple of years. There are only specific areas that it is allowed, such that, some new developments around here even make it a point that they are "vacation rental approved", like, its their marketing push. Meaning that most of the city is not, but that they are, etc., etc. Other smaller towns around SG are okay with it, except that they might have waiting list for a permit (Hurricane, for example). Although, as was pointed out in an earlier post, sometimes people just do it anyway, until they receive a letter from the city. I actually got all fired up about it, after seeing the Airbnb video a few months ago, and even paid the $997 for a program, and then realized that SG is not very high on VRs. But hey, I also heard the county commissioner (who I know) on a radio call-in show the other morning, and someone called in and asked about why the city ordinances were as they are, and he said they're always considering options. 

@Account Closed Thank you. And yes, I would absolutely take care of getting the seller's mortgage current up front. And thank you for the idea to get the seller's authorization for payoff, at the beginning of the process, at closing. 

Do you see anything that jumps out as an issue with the following scenario of numbers?

Maybe a contingency % for the rehab? 

Oh also, this is on 2.7 acres, of which another home could actually be built on an acre, which may be a whole other profit center to consider with all of this.  

@Account Closed you mentioned that you work primarily with Subject To's, etc. If we, as an investor, have had the seller sign all of our CYA docs, got the title insurance done, closed with an attorney, and received the deed, etc., is there any remaining risk to us, considering that our exit strategy is to flip the property anyway? 

I am not a flipper, but a deal has presented itself, with a seller who is going through a divorce (the deed is in his name only), and who has also just received a foreclosure notice from the bank's attorney. I'm hesitant to jump in the middle of a huge mess, but I also don't want to walk past an opportunity, if there is one. 

@Corby Goade and @Adam Horowitz looks like this post is about 8 months old, but I had the same question, regarding the use of a HELOC, and/or savings, versus an HML.

So for example, purchase price of 100K, and 30K rehab, what are the considerations regarding how to fund it? 

Does it make better sense for me to get a HELOC for a 100K for the purchase, and use 30K from savings to do the rehab, or, would it be better to use a HML for all 130K, i.e., what are the considerations?

There are a lot of comments about using OPM (usually when someone who doesn't have access to their own money), and that by using OPM there is less risk to you. So other than risk, what is the reason for using a HML for the total 130K, instead of using my own HELOC/savings for the 130K?

Wouldn't using your own HELOC/savings result in a few thousand dollars saved, as opposed to the higher interest rate with a HML, and the points and fees? The HELOC rate would be 10-12%, plus whatever the points are, versus the HELOC rate of around 6%, with no points or fees.

So the question is, since funding a purchase & rehab with a HELOC/savings, is less expensive than using a HML (interest rate, pionts, fees, etc), other than the "risk" from using your own funds, what are the other considerations?

@Brian Adams It is pretty interesting that this post is 3 years old. I have read the comments a few times, off and on, and as a CPA also, I will say that you're an inspiration. It's for sure, all about the "why". 

@Greg Wilding I have a home rented out in Saratoga Springs that we turned in to a duplex type of arrangement. The home has 3 levels, with the lower level that includes a kitchen, and walk-out to the backyard. So there is one family who rents the top two main floors, and another family that rents the bottom floor. 

One concern, that is actually not an issue currently, but will be in the future, is how the laundry room is to be used. The laundry room in this particular home is on the third level (the upstairs of the home). Currently, that works okay, since the two families are friends, so they just have their own arrangement figured out about when the family on the lower level can go upstairs to do their laundry, etc. But, in the future, when there are new tenants in there, that don't know each other, I'm not sure yet how to handle that. I have thought about checking to see if there is some type of portable washer/dryer, that I could just put in the lower level kitchen area, to be used there, and stored off to the side, or something. 

One other concern, in the future, is how the garage would/could be used. Its a very large 3-car garage, with one door into the main home, and another door to the outside. It currently works fine, with those two separate families that know each other, but in the future, when that is no longer the case, I'm not sure what needs to be considered as far as use of the garage. 

@Sharon Tseung As was mentioned previously, I would suggest that you do read David Greene's book on out of state investing. Excellent information, no hype, just nuts-and-bolts of what to do, and how to do it. For me, it came down to the part about relationships, and working the relationships that you may already have with people in various parts of the country, and then, who they can connect you with, and so on. Good luck! 

Congrats @Justin Fraser.  For me, your experience is all about "success breeds success"! You were undaunted, despite various obstacles, but, due to your having built relationships, you basically just kept pushing your way through it all. Very impressive. And, a couple of things that you mentioned in your post, I would attribute to luck smiling upon you, but, in order to have luck on your side, you need to have prepared previously, and to therefore be in the very position to make it all happen. The key word "make" it happen, which is what you did. Awesome job!

Has anyone used the BP Marketplace Foreclosures subscription service, and if so, have you found value in it? Is there a difference with BP's version, versus other subscriptions like auction.com or homepath?  There is a 7-day trial period, which I was considering, but I wanted to see if anyone has had some experience with BPs foreclosure marketplace, how it works, etc.

I vote for Quickbooks Pro desk top. I've been using it for years, and I agree with @Account Closed, it doesn't even need to be the latest version. I've been using 2012 for years, and it does pretty much everything that I need.