All Forum Posts by: Dave Hart

I'm exploring a rehab on a SFH that is in a flood plain and has experienced significant water issues in the basement. I'd like advice if there are options that could make this work.

The house is on a great street, but it’s down the hill and below the “water level line”. Other houses on this block, including next door, are newly rehabbed and selling for $650. I can likely buy this same size house for $115

I’m hoping I can get an engineer to review, move all mechanicals above the “water level line”, get approval from the bank on the after-rehab long term debt before getting into this. I’ll also talk to my insurance broker about those costs.  What else do I need to check?

Likely need to rent this since the basement will be non functional. Great rental market BTW. 

I’ve never done this level of rehab (I’ve done fix to LTR with standard updates and a few curveballs…but nothing to this degree).

Anyone done this with advice? There must be solutions to monetize a deal like this. Open to all exit strategies.

Thanks in advance. 

In the weeds on this one. But might help others avoid this pitfall…

when a mortgage is transferred between banks, I’m learning they don’t record a lien release with the county. 

Does anyone know what officially gets recorded with the county when a mortgage is transferred?

this has caused significant delays with a cash out refi on an existing rental. Title is showing an existing lien from 2014 and requesting a lien release before we can close. It’s been 2 weeks of “who’s on first”

Help educate me, Title Nerds….

How can you find out if an existing mortgage is assumable?

Do I need the seller to provide me with the mortgage documents and have a lawyer review?

Earning an extra 3% on $2k that you’re likely holding for less than a year. None of this is worth an ounce of energy or thought. Spend that energy finding the next deal…

I have 4 rentals. All cash flow positive. I’m running out of capital to buy more. One option is I can cash out refi one property that has $400k in equity. 

If I take out $200k, that property will have a negative cash flow of $500, but the overall portfolio will still cash flow positive and I'll have capital for another purchase. My attempt will be to BRRRR and recycle as much capital as possible.

Any thoughts if an individual property can negative cash flow to provide capital as long as the portfolio is still positive? 

Thanks all

Fair warning BP friends. I leveraged the BP site to get referrals on tax services now that my portfolio is growing (4 properties). I was connected to 1800 Accountant (they said they were a partner of BP). Sounds like decent services, but it's a high pressure sales job (like when the window & door guy comes to your house and wont leave until you sign). They might be great, but we were only 9 minutes in before the conversations turned to "what credit card are you going to use." Every question I asked was answered with "once you pay, you can talk to a certified accountant." 

I need a partner to help me with tax strategy - and these guys feel like a boiler room.

Admins - sorry if this post needs to go somewhere else on the site, but I wanted to provide feedback and let you know that this team is saying they are "partners with BP" and behaving like this. Let me know if I need to move it or send to your "Build your team" team.

Dave

Wow. Opinions on how to deal with tenants gets spicy in here. I vote on the side of honey rather than vinegar. Reduce turnover costs.

Looking to secure a HELOC on an long term rental property in IL. I've tried the BP Find a Lender and the David Greene One Brokerage. Neither have options for investment property HELOCs in Illinois. Any recommendations?

Thanks David - super helpful. 

My current rentals are all in my personal name with conventional loans. As I grow (looking to buy #4), I'm exploring buying in an LLC with a DSCR loan. What I don't understand is how should I think about the tax benefits when holding rental property in an LLC. I love the current benefits to my personal tax return with depreciation and mortgage interest. Can I continue to get the tax benefits to my personal taxes if property is in an LLC? If not, I assume the LLC would then recognize those benefits, but I'm not sure how.

Anyone have an easy way to help understand this?