All Forum Posts by: Daniel Porter

I just used the trulia crime map this morning, and as of right now, i can't find the feature on the mobile or desktop site. Is anyone else having this issue? I use the crime map all the time for analysis. Its not a dealbreaker, because sometimes the neighborhood is awesome, but theres a busstop where a few altercation go down. It's a great way to find deals that retail ppl/some investors overlook! 

Just wondering what yall are doing now. Spot Crime is another site that offers free crime analysis, but it doesn't have the heat map feature. 

@Stephanie P.

I appreciate the honesty! That’s what I ended up doing. Haha.

@Forrest Williams ya, because the hard money loan would be at 12% interest for 8 months, and i highly doubt theyd extend that for three years. i'd be paying ($3400~/mo - $1500 rent on otherside) about $2000 per month in order to hold the house, and that would eat into my income too much. 

maybe a 5-7 interest only balloon loan tho? or something like that? 

Theres a duplex in a very great part of town for $300k. it'll need everything pretty much, including installing HVAC. Structurally its solid though, and the roof seems fine. the ARV, going by ave $/sqft, would be close to $460k.

I could probably rent the other half out for $1500~. 2/2, 1200~sqft. 

my problem is, my DTI can handle a mortgage for $300k, let alone trying to do a cashout refi at $460k. I'd like to just do a rate and term refi, for lets say a total of $360k. That would put the PITI around $2k/mo, and I'm totally fine with paying out of pocket per month on this place, because im very okay with the location and the markets fundamentals (Dallas, TX). and once i move out, it will cash flow at roughly 1.5 DSCR. plenty of room for stuff to go wrong! haha.

Does anyone have any idea how i can hold on to this after i rehab it?? i just can't see any lender letting me live there. Maybe i can get a DSCR type commerical loan for it, and then move into it once i can afford it? or hold it in my S-Corp and just rent it to myself and the other tenant so the rental income is $3k instead of $2k??? 

Trying to get creative here, any help would be much appreciated! 

-Dan

hey bp! happy Thursday! 

So i've been walking a few properties, ugly properties, and ive found two that would work for my house hacking strategy. The problem is i've been checking permit records on them, and nothing has been pulled in regards to converting these single family's into multis(or ADUs). on top of that, they're zoned Single Family. 

For the record, i thiiiinnnkkkk dallas has a By-Right ADU policy now (you can build an ADU w/o city permission in a SF zone), but i'm pretty sure you still need to pull permits for plumbing and electrical.

on the other hand, there are BOATLOADS of adus in south dallas, and nothing is permitted. haha. i read a local article saying only 17 ADU applications were submitted in all of 2020-2021. everyone seems to just be doing it anyway. 

so my question is, do i immediately walk away from these properties? has anyone figured out a way to creatively handle these situations, or create some sort of way to legally protect yourself? 

any help would be much appreciated! 

@Lucia Rushton

They did, I’ve gotta check the disclosure again to be sure, but I’m 99% positive it included taxes, and insurance.

It’s a $113k refi.

First off, a big ol HOWDY YALL from dallas, everybody! haha. 

secondly, this is my first refinance and i just got off the phone with an amcap broker saying that the escrow fees are going to be $8000. this is an estimate, of course, and will probably be a little lower, but still- that seems really high. 

am i getting screwed here? is there anything i can negotiate here? if i bring my own survey i can save $350, which i think i still have somewhere. 

granted, im dropping my rate from ~7.5% to ~2.75%!! so that'll be HUGE, and in the long run it'll certainly be worth it. that $8000 includes a rate buydown for $400. 

any comments would be much appreciated. thanks for helping out a newb! 

hey guys, just wanted to post a follow up. there have been no issues since. i reinforced the doors. i got a ring security system. and i've got three other roommates with me, so theres pretty much always someone home. 

Thanks again for all the support. It really helped me to know i wasn't the only one. 

i do see the logic in that, but assuming tenants will pay down a mortgage is a pretty big assumption, especially considering the new environment were in. paying it down sooner minimizes the window of time that a risk of vacancy could ruin it. 

think about it, what if the cdc extends the moratorium to June 2021? or Jan 2022? what if another strain hits the world next year? 

those could be/are big assumptions, equivalent to "what if an asteroid destroys the planet?" type scenarios, but, even all those crazy assumptions can be mitigated by simply paying off the mortgage. and not only that, but paying off the mortgage increases the free cashflow substantionally (no more monthly debt service), and you still have all that equity available for a Heloc. 

i know its not a popular strategy, but i think its becoming much more viable considering the circumstances.  

@Daniel Porter

Sorry, accidentally posted before i was done...

Does anyone have any experience with this? I’m honestly leaning towards not scaling as aggressively and trying to pay these houses off faster so I can own them free and clear.