All Forum Posts by: Eddie L.

Quote from @Jennifer Cooper:

Hi,

We are closing on our second short term rental in Oakhurst this month. Personally I really enjoy the area which is why I chose to invest there. Heres my listing: https://www.airbnb.com/rooms/5...

Happy to share our experience with you.

-Jennifer

 Hi Jennifer. The listing looks awesome and thanks for sharing. Can I send you a PM for a possible agent referral? 

Hi, for those who hire a real estate CPA, do you also keep your normal CPA for your regular taxes?

Is it a thing to have multiple CPAs filing in the same year?

Would 40203 be considered C or more D? This would be on Chestnut Ave area? 

I was trying to get into the Louisville market and have a few zip codes I wanted to stick with. I didn't see anything about 40211 (Chickasaw) and mainly around the 264. I am seeing a few properties listed here but not sure if it's a true C class area with potential.

For reference, the zip codes I am comfortable with are 40215, 40208, 40258, 40272, 40214, 40228, 40229, 40291. I know it can be block by block (like most cities) but wanted everyone's insight. Thanks!

I currently have a HELOC line of $200k. I am using it to buy all cash for smaller SFHs for the BRRRR strategy (i.e. $100k house purchase, $30k rehab) and then plan to refinance to pay off the variable rate from my HELOC into a traditional 30 yr loan (typical stuff here).

However, I want to scale faster for a multi-family (4-plex? 6 to 8 unit apartment complex).  Let's say I find a $400k property. What strategies are available to make this play?
I prefer not to use hard money / private money unless I have to).

Would it makes sense to do a 25% down payment ($100k) from my HELOC and do a conventional loan for the remaining 75% ($300k?) If so, am I supposed to do a cash out refi after seasoning period to pay back my $75k HELOC down payment (to get out of that variable rate). Would I need to utilize BRRRR to make this strategy make sense since I can get an appraisal for a higher ARV than $400k?

I guess my issue is I want to scale up to $400k properties but my HELOC is only enough to fund smaller projects. I know I can use hard money / private money to fund my remaining 75% but again, I prefer not to.

Let me know what everyone thinks.

Going to be funding my first BRRRR next ($70k-120k purchase + rehab). I have the option of using hard money or HELOC from my primary residence. I'm debating on which option is better. I plan to refinance within 6 months to lower rate / longer term.

All else being equal, which do you prefer? Has anyone used both and found one option more favorable?

HML higher rate (7-9%) but fixed. HELOC usually lower rate but variable and also your house is used as collateral. May have hidden costs with appraisals, title, etc.

Hi fellow investors. I wanted to see where everyone's risk tolerance is with accumulating multiple rental properties over time. I currently have 2 rental units (fun and addicting!) but I am a bit hesitant to keep going because at some point, your risk goes up with each property.

Let's say you have 5 cash flowing properties (+$800/mo ea) and you refinanced out at $200k mortgage each. That is $4,000+ positive cashflow each month. That is awesome and exciting but in the back of my mind, I think I am now on the hook for $1M+ worth of mortgages! Sure I can save 6 months PITI in my reserves for each unit, etc but you are still on the books for $1M in debt. Just because it produces money (asset) doesn't mean it isn't debt. What is everyone's view on this? Am I just being paranoid?

FWIW, I had 6 months PITI reserves for my 1st unit and then the pandemic hit. My tenant didn't pay for almost a year (due to eviction halt) and when they were finally evicted 12 months later, my house was trashed ($15k+ to fix). The costs were bad but still doable for me. However, if I had 5 units at $200k mortgage each, and this happened to all 5 units of mine, I would've been in real trouble. I doubt another pandemic hits in our lifetime but you just never know.

What does everyone else think?

My family and I live in our primary home in San Francisco bay area that we bought many years ago. It is valued at roughly $1.5M and we owe about $350k on it. I was considering tapping into the equity to put a down payment on a second home within the next 6 months. I spoke with a lender and she suggested a cash-out refinance. We could get ~ $700k at 4%, which I would then pay off the $350k balance and have $350k for a down payment. We would then rent out the new place (or even move in later on).

The main issue is we are not ready to buy yet. The inventory isn't that great right now. I would hate to take the cash-out refinance now and pay the higher monthly payments for ~ 6 months until we find a new house we like. Would a HELOC be smart at this point? Get the cash out and when we are ready, we can start this process? And when we get the 2nd home we can refinance the HELOC and get a fixed rate?

Sorry if I make no sense as I am really new to this. The bankers are pushy and do not seem to answer all my questions. She said if I do not take our the cash-out refinance now, the banks will stop doing them soon due to COVID, which I get.

I forgot to mention: I do not need to do anything and just live out our years with a low monthly mortgage. I know times are weird right now and who knows what the economy will look like in 6 months or a year. I can play it safe and just wait it out. 

Originally posted by @Brandon Sturgill:

@Eddie L. How was your experience working with Roofstock? Any regrets? 

So far so good although I am still very early in the closing process and will save my judgment until I close.  Hopefully in 30 days!

@Jason G. Very cool. I noticed you guys plan to buy a couple more SFRs until you hit 10 mortgages. Did you ever consider having the title of the house under both your names but only  have a mortgage under your name (or her name?)

Therefore, you can add more than 10 between both of you?