All Forum Posts by: Daniel Sprague

So far I have stayed away from "mixing" my primary residence with my REI....

Im not saying this is a must but its a personal preference.

The HELOC should be in place however in case of that cash deal that comes up and you need to pounce.

Having it open and ready is the key. 

Personally I can finance without using my primary residence as collateral so I stick to that.

HELOCs against rental properties are a way different. Get the highest LTV the bank will give you.

Get on Craigslist and buy used. 

You will attract better tenants which will solve problems you will never know you would have had.

Set yourself apart from your competition.

I agree that money isn't the only reason, but real estate is numbers driven which boils down to one thing..... money, more specifically cash flow. 

To be successful at real estate you need to constantly run scenarios, crunch numbers, and crunch numbers again.  All of the numbers are based on monthly cash flow (money).

So, I agree that money shouldn't be the only reason you do this, but you are going to need an intrinsic love of numbers to be successful in this business which means you will be thinking about money a lot.

Good luck

Hey BP,

Just to give you an idea of the marketplace I operate in, we have a population of about 50,000, we have rental licenses with density and minimal property standards, and we have a lot of converted "turn of the century" (1890-1910) houses that have been converted to dups or tris.

There has been some chatter about the city possibly requiring separate gas meters for all units.  Currently we have a lot of properties where there is one meter, the landlord pays the bill, and then splits fairly between each unit...

Has anyone run into a situation like this?  How was it handled? 

Several years ago, the city passed that all rentals had to have hard surface parking and required all rentals to update if they had gravel, but they gave you some time to get that done.

There have simply been rumblings about this, but I wanted to see if anyone has had first hand experience with how it was handled by the city, as well as the property owners.

Any advice or insight is appreciated.

Thanks,

Yah... this was pertaining to duplexs ... I think the SFHs would have been a different story.

Thanks for the input.

Thanks for the help

Hello,

Has anyone run into the down payment rule on an investment property (2-4 unit) going from 25% to 30% on the 5th property you want to buy with conventional financing? 

I am wondering if this is a Freddie/ Fannie rule, or a bank specific overlay?

Thanks,

Hi Lisa,   Welcome from a fellow Minnesotan.  Reach out if you have any questions

Thanks,

Welcome to BP, and RE investing in MN.  It is a ton of fun!

I am also in MN, and am in close contact with my RE attorney regularly, and I have never heard of Series LLC's.... can we confirm they aren't recognized in MN?

I will have to listen back to 109 as well.