All Forum Posts by: Eric Salgado

@Robin Simon yes cash out no refinacing DSCR loan in Birmingham AL.

@Bobby Feinman does it chage if I bought in cash and fixed up using cash?

Hello, looking for a Birmingham Alabama Lender with no seasoning periods. Any recommendations are appriciated.

I bought a 2 bed 1 bath out of state (Kentucky) the property has a basement area and attic. Both are not to code so they are not counted as liveable space as well as not counted as a bedroom. My question is do I add ceiling height to the attic by making it a dormer which would count as liveable space or add egress windows to basement to make that liveable space. Both would put me significantly over budget especially the attic height raising. Does anyone have experience with this and a recommendation on which one is better for a value add as well as getting section 8 to count as a bedroom.

@Casey C. Oos investor in Louisville. I love this market. Job growth and lots of value add opportunities. Already grabbed 3 SFH in a short time and looking to hopefully get 4-5 by the end of next year. Good luck.

Hello BP,

I have some out of state rentals and have a pretty good team set up to continue to scale. On top of that I have a separate home service business that has seen a few really good years recently. My question is to expedite this growth can I buy rentals with my existing home service business? It's an S-Corp and my partner and thought with the recent success of the business to purchase real estate in my out of state market.

My question on top of that is when we use the money as a down deposit on a piece of real estate from my existing home service business is that considered a "distributor" when we pull out capital to buy real estate? For example 100k in profits and use 25K as a down deposit and maybe 10K in repais, would only 65K be considered taxable on my S-Corp? Also how are taxes passed through when the S-Corp owns the business?

@Benjamin Bass yes its in an LLC currently under renovations.

Doing my 2nd out of state BRRR in Louisville (love that market) my first BRRR I waited the 6 months to refinance with a conventional loan. This BRRR will be done much quicker so I am looking for a lender that doesn't have seasoning period with long-term amortization periods (25 years plus) also waiting the seasoning period can slow down growth! Any recommendations would be greatly appreciated.

@Rob Bergeron I too am in need of a GC for my next BRRR out there. Can I PM you for their contact information?

Hello BP,

I got a long a brutal history on my first property with lots of learning mistakes. I’ll try to keep this as short as I can but also paint the exact picture that I am in and desperately need some advice. So bought my first out of state property in Indiana last May it’s a Duplex. Top unit on Christmas had a suicide and the unit downstairs was very close with upstairs tenant. The bottom unit had always paid rent on time and never made as much as a peep until the girlfriend downstairs was so emotionally destroyed about the suicide she left the property. Now the boyfriend of the bottom unit has been nothing but trouble. We decided to switch property management companies as we found out they weren’t doing everything we were paying them to do including doing a background check on the bottom units boyfriend. The downstairs tenant first had a fighting ring in the backyard that after an eviction notice he did take down. Next, we have to chase him down to pay rent and typically only does after we serve him with a 10 day notice. Then He plays very loud music, won’t let anyone in his unit including the water department cause our water bill and electric bills have skyrocketed, when the contractor goes upstairs to fix the upstairs unit he lets everyone know there was a suicide in the unit which we feel will scare away another tenant when we are trying to get it filled. He appears to be strung out on drugs and actually creeped out a contractor so bad he left the job site. Lastly he has his new girlfriend living there and Paid the last months rent with her name on the money order. So my question is how do we get this tenant out keeping in mind the following. His lease is up next February, he does pay but only after we serve him a 10 day notice and COVID.I am open to any suggestions because any decent tenant we get upstairs is going to want to leave when meeting this downstairs tenant.  My property manager thinks we have somewhat of a leg to stand on with the unauthorized guest but the previous property manager lease was in her opinion didn’t specifically define the subletting and unauthorized guests. I have another property and it’s section 8 in another state and it’s been incredible but this property being my first has been a headache to say the least. Any suggestions, Cash for Keys? Eviction for unauthorized user, not allowing access to unit? Thanks in advance.