All Forum Posts by: Douglas Skipworth

Quote from @Ashley Kroft:

@Douglas Skipworth, thank you for your advice!

Is the line of credit different from refinancing the home that is free and clear? Is this considered a HELOC?

I appreciate your time!

Yes, a HELOC or bank a line of credit is different than a lump-sum amortizing mortgage (DSCR or otherwise).

If she's willing, which it sounds like she is, your mother-in=law can get the line of credit with her property in her name and then you can just use the line.  She'd probably be able to put you on the line as a co-borrower.

I've done this personally and it's been great for me and my situation!

@Ashley Kroft, what a great position to be in!

I've been in a similar spot with family.  

If I were in your and/or your mother-in-laws shoes, I would go to a local bank and use the free and clear house to secure a $150K+ line of credit. I would then use the line of credit for BRRRR's or fix and flips. I would try not to tie up any of the principal in down payments.

Personally, I had a family member do this same thing, but they used an investment portfolio as the collateral instead of real estate.

If you play your cards right, this might be the only short-term money you ever need.

Please let us know what you end up doing.

If I were starting out in Chicago today, I would reach out to @Mark Ainley. He's got the #1 investor podcast in your area, his property management company is first rate, and he's a great guy. Best of luck!

Quote from @Jordan Ray:

Quote from @Clinton Davis:

What do you guys normally do if a tenant moves in without a pet but then they want to get one later.  What kind of pet deposit is fair these days and is it fair to ask for more rent per month and how much?  I know every area is different but I was thinking $300 pet deposit and $25 more per month.  I'm in the Memphis area.  Thanks for your suggestions. 

I usually charge a $50 deposit per pet and $50/month per pet. 

We used to do pet deposits, but now we collect a one-time "pet fee" upfront that is designated for damage repair and cleaning on the back end.  The pet owners understand (and it is one less deposit to account for).

@Engelo Rumora, when are you going to come back and visit us in Memphis?!  It's been too long.

Quote from @Michael Smythe:

@Jason Frink you can also look into Detroit and Toledo.

Been reading that Memphis is becoming saturated with rentals.

Hey, Michael, I'm a big investor in Memphis.  I'm just curious, where have you been reading that it's becoming saturated with rentals? I'm always looking for more info about the market.

What's the worst real estate decision you ever made?  I shared one of mine on the Investor's Guide to Memphis Real Estate last week.

Are you considering using a wholesaler to buy real estate? In Memphis, we suggest using an agent to bridge the gap and protect your purchase.

If you're looking for property in Memphis, check out CrestCore Realty's deal of the week in 38122.

Here's a 60-second overview of how I turned the 1% rule into the 2% rule over the past decade in Memphis (using show sponsor CrestCore Realty for property management!)!