All Forum Posts by: David Boroughes

  From what I understand, unless the property is zoned General business, then the minimum rental period is 30 days. 

If I started renting out my primary home (long term) could I just keep the homeowners insurance policy I have or would I have to get a Landlord's policy? 

@Nathan Gesner I like it! Thank you!

Looking to do an addendum to the lease regarding parking. Current rental agreement doesn't speak to the subject. Last year I added 3 parking spaces for two apartments. 1 for each unit, 1 for a guest. I have 1 apartment which is taking up 2 spaces consistently, which is fine, the other tenant only takes up 1, but then they are also tandem parking behind the 2 and boxing in the other tenant, they can barely get by when this occurs. They also 'flip' cars from auctions and often have non registered vehicles in the spaces, they switch plates from one car to the next. They conduct business deals in the driveway when they sell the cars which invites strangers on to the property to look at the cars, the other tenant has complained to me about feeling uncomfortable when this happens as they are on the 1st floor and closer to the parking area. Any ideas on wording a clause that I will then have the tenants agree to? Needs to encompass all these issues. Thanks!

@Anthony Thompson Any idea WHO these lenders are? I guess I'll have start pounding the pavement...

@John Morelli Perfect! Thank you. You make it sound easy! 

@Anthony Thompson My dilemma, do I try and consolidate a few conventional mortgages into one commercial loan? I, too am old enough to have lived through when these adjustable rate loans took you to a worse place than a fixed, however, now it seems no one really considers that an issue, I still say it's something of a gamble. Once I refi into the commercial product and pay off these 30yr fixed rate loans (at 4-4.5%), just to save maybe 1-1.5% there will be no going back if the rates creep up. This is why I am in this 'stuck' position. 

@Brandon Ingegneri Thanks for the note. One of my biggest questions is whether or not a commercial type loan would show on my debt to income for future qualification purposes, are you saying they don't appear on credit reports and therefore will not impact my DTI?

From my experience tenants prefer hardwoods over carpet. I also believe it is a higher end finish. Carpet will need to be replaced at some point, depending on the wear and tear of the tenants, probably every 5-10 or so years, Refinishing hardwoods can last up to 20 years, and are easy to clean and keep looking good. Having said that, if this is a 3rd floor unit, maybe consider carpet with a good pad to deaden sound traveling to the lower unit(s). You really can't go wrong, either way will look very nice. 

@Adam Martin Thank you for the reply. So the commercial lender was fine with you having the property in your name? Didn't require it to be put in an llc? What rate? Any more details you can share would be helpful.

@Account Closed You said it! Prices are sky high and returns low. If I can make 7% on a buy and hold (whether buying for cash or 25% down and financing the rest) than its a great deal around my parts. 

@Kenneth Garrett Interesting, I always thought the llc would flow through to my tax return, are you talking about an 'S' corp? Would like to hear more details on how this would be separate and not show up for loan qualification purposes.

@Eric Johnson That would be ideal. Thanks

@Cyan Colbert I was shut off after 3, then we started getting mortgages in just my partners name, then they shut her off after 3.

@Kenneth Garrett Can you elaborate on what you mean by 'mortgages don't show up on your personal credit'?

@Khaled El Dorry Not maxed out on number of conventional, but no longer qualify b/c DTI ratio by tax returns. I am considering trying to refi one to pay off another, but even if that works out the larger payment produced will result in this same problem for me with the next. I've 1031'd before, but very hard to make that work out in this environment, my current portfolio has really good cost basis, and I'd couldn't duplicate the returns with an exchange at this time.