All Forum Posts by: Grant Med

@Fay Chen no problem!

If you don't mind sending me the banks you are using I would really like to repeat what you are doing.

Hey @Fay Chen!

I am an out of state investor who has a property in Texas as well and tried to cash out refinance. Here is how it was explained to me by a brokerage/ lender based out of Texas: Texas law essentially states that they don't want you to cash out refinance because it would "burden the homeowner with more debt". It is an old school thinking that has not been adjusted for modern times. I honestly would've probably skipped investing in Texas if I had known this before I bought. The broker did say that smaller local banks have a work around for this but I haven't had any luck convincing one to do a cash out refinance for me.

Hope this helps a little bit.

@Theresa Harris solid points for sure.

We definitely are fixing these issues because we know many buyers couldn't even with a credit.

We have marketed the income producers that the MTR and STR provide but it seems most people don't want that or don't really understand how powerful these can be for them.

You hit the nail on the head with repairs haha. Our first year here every major system of the property broke but the last two years have been easy but now all the roofs are going out.

Thanks for the advice!

Hey @Jaycee Greene

Thank you!

The cash flow is after and is for the two MTRs and the ADU/STR: all income and all expenses. So PITI, Landscaping, pool service, cleaning fees for the STR, utilities because they are included for the two MTRs and the STR.

Now the property was purchased for $482,000 and we have it listed at $560,000. Pretty solid appreciation but the list price is definitely on the high end for this area. The school districts are not that great where we are. The area is desirable but sadly crime and population decline is happening here.

Thanks for the reply Austin!

I would prefer to not real estate go as well. I know over the long term things usually work out well. It's tough because this city is more or less losing population and has insurance out here has almost doubled in the last three years. With the money we've saved from house hacking and from the sale(hopefully happens) we are in a pretty good position to use these funds to buy in a market with more upside.

We definitely are torn. That's solid cashflow for us, but in the sale wed make 5 years worth of cash flow and the headaches go away.

Hey Everyone!

My wife and I are attempting to sell our home that has been a cash flow machine but has had quite a lot of capex and other issues over the last few years.

This property has been a great house hack for us and we have lived for free here however we are moving. It's a pretty high end home for the area but is having trouble selling due to a few design choices of the previous owner as well as I think the age of the home might be turning people off.

Specs and strategies we use: It has a main home, above garage apartment and an ADU in the back yard. We MTR the apartment and STR the ADU. Both bring in exceptional cash flow. We are confident we can MTR the main home as well however after all expenses we will be bringing in around $600 a month in cash flow after accounting for capex, maint, vacancy.

We have been hit with multiple major roof repairs in the last two months because of spring storms and are faced with having to replace our main houses roof as well.

So here's my question: Would you rather fix the issues and continue using the strategies above and wait a few more years to sell, or would you still fix the issues(because you have to, sell ? We are anticipating walking with between $15,000- $30,000 after all taxes and fees.

Thanks in advance and I will do my best to respond to everyone!

Hey there!

I am an investor in San Diego and have a few properties in Texas and Louisiana. I can assure you that this is unfortunately not the case. My LLCs are in the states of the properties and California can and DOES tax your world wide wealth. Just make sure you're getting all of the depreciation you can to offset this.

Hope this helps.

What are the barriers to getting and STR going in Lincoln City? I have family moving there and I am considering moving as well to be near them. I only buy properties where house hack and I have the ability to STR/MTR. I'm super stoked that you posted on this because I am actively looking haha.

Thanks!

Hey Harshal!

My wife and I were under contract for a great house in Bella Vista last year and decided to pull out of the deal after the inspection. Bella Vista is a really great spot for a homeowner but investing there is tough. The entire town is in a property owner association(basically and HOA). It makes it hard to know what strategies you can use there. We ran our numbers as an STR/MTR hybrid and the numbers weren't super great even with the BOOM in STRs in the area. The area does not have explicit rules on STRs so its a gamble with that strategy. Rents are also pretty low there. The area was designed as a retirement zone and it still has that reputation. I believe the prices are lower there compared to Bentonville because of this reputation. It is a beautiful area but because of the zoning and rules up there it would be difficult for the area to "blow up" and have a ton of new growth.

Thank you to everyone who has replied! All of this info is really helpful. It sounds like most of the documents are easy to find on my own. But drafting the note I do not have any experience with. Are these title companies usually pretty on it when it comes to putting in terms? Or should I try and specify as many as I can?