All Forum Posts by: Taylor Dasch

I wouldnt say it makes a difference in rental value for the property, however if they are good tenants I would do it just to show them I care, if its just 170 and a one time cost, I wouldnt do it if I had to pay monthly though. 

Is your condo a rental? Will if still cash flow or at least break even after the cash out? It is likely that you will get a better percentage return if you cash out refinance it all and put it into another property or properties. But it is important that your property still cash flows IMO. But if its your primary residence, then yes that will be a good idea as your mortgage payment will go up but the amount you invest should take care of the increase and much more.

Skip tracing on propstream is moderately accurate, batchskiptracing is also good, also their mailing address should be their primary address and it should be listed on the county assessor website. 

I believe local laws play a factor when showing rentals, but the general answer is if you have 3 qualified applicants and you dont want to show the property, then you dont have to. This isnt legal advice and hopefully someone can chime in with more knowledge. For my rental, the first couple who viewed it was qualified and put in an application and I accepted it. I had a couple applications come in from people that had not viewed the property or even messaged me and I denied them. I know it sucks that they had to pay for the application but I specifically told people to not apply until after viewing the property lol.

Im no expert on this but when I researched HELOCs it seemed that you could pay it back in 10 years. If you own the property free and clear, a mortgage payment wont hurt you too bad I wouldnt think. The 1 year thing is because typically investors use a HELOC to fund the rehab and then when they cash out refinance the property they pay the HELOC back and repeat. It sounds like you have already spent the $ so you will probably just have to pay it back unless you wanted to do a cash out refinance which would also leave you with a mortgage payment.

I let the guest use the master bath, master bed, and the kitchen, however I noticed that most would not even use the kitchen (I did make them breakfast for the doctors/nurses who were going to interviews typically). Vacancy rates were less than 10%, but I also had it as unavailable for 2 days a week when I was at work. 

Investors could not care less who is buying in their neighborhood IMO. One property being fixed up wont change a whole neighborhood.  What I see typically is that individual investors will buy property in an older neighborhood, fix the properties up and rent them or sell them. Over time this will increase the value of the neighborhood. It is also very possible that an investor would share deals with you as some investors, especially newer ones, dont have the capital to purchase every property that fits their criteria. Also, your criteria and another investors criteria are highly unlikely to be the same so it isnt likely that yall will be competing for deals.

You just have to interview them and go with your gut feeling along with reviews and word of mouth.  I can typically tell just by meeting someone if they will do a good job or at least if they actually care about what they are doing. 

House hacking is a great strategy, but I agree, 800k for a duplex is insane! If you do go with a SFH in the California area and are able to hold onto it, the property values will likely appreciate significantly. On my first property, my girlfriend and I stayed in the guest bedroom and did AirBnb for the master bath which was right next to the kitchen, I did that for probably around a year and had very little interaction with my guest aside from when they left and when they came in. My girlfriend did not like it only because I am a Firefighter and ONE TIME I left for shift a guest had needed a late checkout and I allowed it and my girlfriend felt uncomfortable so we stopped. However I still tell her that I could have purchased almost a property per year with that AirBNB income lol. Also with AirBnb you can screen your guests prior to arrival to make sure you are comfortable with them staying at your place. In my case I really only had doctors and nurses rent the room.

A long term partner is a good option and maybe you can structure it to where you can buy them out when you do have the capital and they have the return they need as well. I'm assuming you still cash flow from your 2 properties you refinanced, you could use a HML assuming you got a good deal, fix it, refinance with little to no money of your own, and then rent it out. It shouldnt impact your DTI since your cash flowing. The only downsides to this are holding costs with a higher interest rate, a low appraisal ( risk can be decreased by knowing the ARV), and going way over budget on rehab, but a lot of HML will allow going over budget if the numbers make sense. The hard part for me when using this strategy is to find the deals! I would only use a HML for pretty good deals like ARV-rehab-30% w 20% cash on cash. But that is because I dont like the risk of holding for too long or unexpected rehab costs coming up. Maybe when I get a few more rehabs under my belt ill start being a little more risky with the deals I come across lol.