All Forum Posts by: Damon L. Davis

@Scott Johnson but seriously, the Refi requires MLS rental listings to be legit comps. Will the broker's CMA provide that?

@Scott Johnson I’ll tell you what’s stopping me, being today years old when I found out that was a possibility from you! Thx!!

Will you share rental comps to help with a refi, pls? 

I am refinancing a 2BA/2BR 1320 sq ft SFH in Rancho Viejo, Santa Fe, NM (south of Rt 25). Unfortunately, the appraiser was forced to use rental comps from the MLS only, of which there are very few in the last 12 months. There were so few rental comps the appraiser had to expand the radius of his comp search but still came back with only $2100 for similar homes. My last renter paid $2550, Rentometer shows much higher rents, but only comps from the MLS are permissible if I'm going to request a reconsideration.

Would you please share a redacted rental contract with me to submit for reconsideration showing the amount your renter pays your property? This could mean a significant difference in the refi amount I can secure. 

Thanks so much for trying to help, and I hope to help you out in return one day!

Hey Brandon, I'm down the street at Georgia Ave and Spring St. I know that building well, and walked through it before the condo conversion was complete. You'll note in the listing the property value in the "Home Value" section it's been literally flat for 6 years. So, you can't force any equity in a condo, history shows the value is not going up to improve your equity, so I can't see how a BRRRR could work. But this could be a nice buy-and-hold for cash flow. Fully furnished it could pull around $2500 or more given its close proximity to downtown SS and the metro. You could rent it medium-term to professionals who flow through our area a lot. That's my model with another condo in the area. However, I recommend calling the building to find out about all of their condo fees. Ask about everything like utilities and any other fee that could eat away at your profit.

I have a traveling nurse moving into my condo for 3 months. She asked if they could have access to the mailbox to receive their forwarded mail. Do you allow medium-term rental (MTR) tenants access to your rental property's mailbox? My concern is when tenants leave the property will keep getting their bills and junk mail. Anything I should be aware of before saying yes? 

Good point @Chris Seveney re buying for cash depending on the foreclosure date. 

Also excellent point re other creditors, I'd need to check on liens against the property. 

Finally, you're right, I might ultimately have to put the nanny out -- but she's losing her home anyway and I'd like to try to help. We'll see how this goes. Thanks so much for helping me think this through.

My Nanny's 3/2 SFH in a MD suburb is about to be foreclosed on. I'm mindful of the fact that they're struggling financially so it might not work out to buy their home and let them rent it back. I certainly wouldn't purchase it as an income-producing property. However, I might be able to acquire it for the amount they owe the bank which would prevent a foreclosure on their record. If my numbers are right I could acquire the place with nearly 200K equity.

If I got a lower mortgage payment all in, I might be able to lower their monthly payment by making their rent equal only what I need to cover PITI, and they could get to stay in their home. If they're unable to make rent.... well they were losing their home anyway.

What am I missing? What creative financing strategies would you pursue keeping the equity play in mind?

@Brian Eastman you’ve corroborated my feeling of how nonsensical this requirement is. The SDIRA custodian has been resistant saying they don’t sign documents of this nature and the request is highly irregular. Thx for your response.

I'm buying a condo using funds in my self directed IRA LLC's account at Wells Fargo. I'm using a hard money lender to finance the deal. My operating agreement for the SDIRA clearly states my name as the manager of the LLC with all rights to conduct the business of the LLC. For some reason my HML is requiring the SDIRA custodian company (the one that set up the IRA and holds the administrative accounting but doesn't do business in or with MY SDIRA LLC) fast nine have a good one to sign on my REI condo purchase. The hard money lender said it is because I don't have a financial stake in the LLC.

The whole thing feels to me like if I was trying to transfer money from my personal checking at Bank of America to someone else, and that someone else required me to get Bank of America corporate to sign off on the transfer. I own the account.

Can someone help me understand why the HML wants the SDIRA custodian to to sign with me, please?

I like how you think @Scott M. Options open!