All Forum Posts by: Ellen A.

what are your opinions on buying an apartment unit as an investment property in an apartment building? pros/cons. have you done it? same question for condo or townhouse.

here is what I found out. 

you all 3 mention paying cash offer and then refinancing.  I wasn't aware you can REfinance if you didn't finance to begin with.  I'm very new so I know there is a lot for me to learn. I will look into this. thanks!

if you had $40k to invest would you

option 1. pay $40k cash for a SFH house that needs 25k in work

comps in the 120s. the property value is probably not going to go up but it seems it would always be rentable for at least $700 a month ($900 more likely)

OR

option 2. get ANOTHER mortgage with a hard money loan and get a property that would increase in value over time.

both methods will require rehab. both we want to buy and hold and rent out.

I currently have 3 rental properties in the $150,000 - $250,000 range that all have been increasing in value and should continue to do so.

option 1 would give us more diversified investment AND diversified experience. it seems like it would offer better cash flow but is also riskier 

we are in line with the courts to evict our tenant. I've been informed that the courts open (as of now) 5/18 but first they are going to start with cases that were postponed due to COVID.

my tenant was a problem before COVID and he is just taking advantage of the crisis.  seeing how we probably wont go to court until June,  he will owe $9900 in past due rent NOT including late fees. 

is there a way to collect or report him to the credit agency or do we just take our lumps and call it a loss? 

he has been served an eviction notice. we text occasionally. here is a new text I drafted but haven't sent yet. I'm hoping for feedback 

please let us know an update. did you lose your job?
we are concerned about your ability to pay.
March $2475
April $2475
May $2475
Total due $7425 plus late fees.

please let me know if there is a way to report nonpayment tenants to the credit agency.

I have one tenant who didnt pay January February or march and moved out before the lease was up.

I have another tenant who didnt pay March and April and I expect May and we hope move out before the lease is up.

again...I've purchased 3 homes after my 2017 forbearance with excellent interest rates.  so no impact in my experience.  775 steady credit score. 

for those that are suggesting "no forbearance" what is your experience with it? other than what you think it might do? I promise I am not trying to sound sarcastic.  I sincerely want real life experience. 

I'm surprised by all the negativity about forbearance .

I can only speak from my experience.

in 2017 we lost everything in hurricane harvey. we did a forbearance. the 1st option was for 3 months. the 2nd option was for another 3 months. then the resolution was a 40 year loan modification. during each option period we did not know what the next step would be.

while we got the house fixed, we purchased a home with a great interest rate. my credit score has been steady at 775 all through the years.

this kicked started our rental business. the cash flow for the house with the 40 year loan was $1000 a month.

we went on to buy two more houses in 2019 with great interest rates.

so no it has not effected our credit. there is a reason there are 2 hour hold times.

I applied for forbearance. I might not need it. but it's there if I need it.

Thank you :) my questions show my lack of experience. I do notice that the tax preparer sent me 62 pages including intentionally blank pages to show the work that she did.

in these 62 pages is there A-line item that shows my cost of goods sold in the last 12 months? :)

I have 4 homes. 3 investment properties and a primary residence. 

 I have used the same tax preparer For more than 20 years.  I'm new to real estate investing. I just started in 2018. My tax lady has said that she has owned investment property before and has  Instructed me on how to track expenses.

 She completed my taxes with a 1040 form.

Is that when everyone else uses? Sometimes I get stuck in loyalties and using the same person over and over not realizing that there are better options if I just switch.

I'm considering getting another tax preparer to review my documents. of course this would cost me more money.  And maybe now is not the time but in the future.
thoughts?