All Forum Posts by: Haritha N.

I think the cost of repairs and capex is highly underestimated by most of the investors. If the gross rent is $2000 and the repairs/vacancy/mgmt/capex is 50% of this $2000, that is a $1000, the cashflow and the returns look so minuscule especially if you consider the effort that goes into managing the rental and the tenants and the cost of the upkeep.

If not for the appreciation and the tax benefits, SFH real estate started becoming unappealing to me. The cost of repairs and tradesmen seems to have skyrocketed after covid, a simple pest control for ants costs above $250, whole house paint of a 1400 sq ft 3 bed house costs $4k or more, a new HVAC costs about $6k, a plumbing repair costs $200 or more, a new water heater costs $1000-$1500. New Appliances longevity is questionable, even the most simple maintenance request seems to set you back by at least $100-$150.

Of course, if you self-manage and DIY most of the repairs, you might save a good chunk. For those of us who depend on trades & services people, I seem to be more disillusioned as the rents are not keeping pace with the expenses. This is my experience, it could be very different for you and your property. 

BP members, Any pointers?

Hello,

I am refinancing my current 30-year mortgage to an All-in-One loan which acts like a HELOC in 1st lien position. I find that this type of loan/line works better for my scenario and needs. I am not trying to debate the pros and cons of All-in-One vs 30-year fixed. All in one would suit some borrowers and the traditional 30-year fixed loan would suit some.

However, the lender that I am going with for my primary house AIO loan, CMG financials, doesn't offer AIO loans for investment properties (Even if they do, there is a limit of max 1 or 2 AIO loans per borrower).  

I hold 2(soon to be 3) rental properties free and clear and I would like to setup similar AIO loans for these rental properties. I understand that bulk of my extra idle money will go into my primary house HELOC. I plan to open the rental HELOCs that give me the much-needed cash when I need it and channel each house's rent into its own HELOC to repay/bring down the interest faster if I draw on the HELOC.

Could you recommend any banks, credit unions and lending groups that offer HELOC 1st lien on investment properties? I hold my properties in AL and plan to expand to other states. I am looking forward to get any references for lenders that do this in multiple states or Alabama or nationally.

I contacted Ridge Lending Group in Portland, OR - They have suspended this at the moment and they expect to offer it sometime next year.

@Bill Hampton Sent you a PM

@Dave Skow Thank you. I have contacted the firm that you recommended. I am waiting for a call back.

@Dave Skow Yes please. Sent you a PM.

@Scott Jensen Got it. Sent you a PM for the CPA info.

I have started RE investments earlier this year. My husband and I live in WA state. We own one rental property in Huntsville, AL and under contract for another.

Could someone refer service providers in WA or elsewhere who can help me with the following?:

- Estate planning. I would like to make sure our assets are well protected and distributed to our heirs with minimal legal hassles.

- Help with figuring out the best strategy of deciding the right business entities and structure for our rental investments - LLC, S corp, both equal partners, both with different % share, me as an employee? . My husband is a salaried employee and I am a stay at home mom. I have more or less decided that I will have to get LLCs setup for our assets protection. I could delay it until I acquire a few more properties, but, I will want to go that route for peace of mind.

- Tax planning and strategies.

I figured I would need Estate Planning Attorney, Financial Advisor (Is it some other title who can help with RE entity setup matters?) and CPA. And I would like each of them to be RE oriented.

I wanted to see if there is one single firm that has different departments handling these and I came across Anderson Business Services. I had the introductory meeting with them, but, the BP members' reviews about Anderson are mixed.

I have contacted mascpas in Seattle, but, they said they can't accommodate me at this point.

I am yet to contact kolotax.com, Mark Kohler's firm, Corporate Direct Services and Smart Business Incorporation.

I am posting here to see if there is a single firm (or) a group of people who provide this type of service that BP members can recommend.

I have started RE investments earlier this year. My husband and I live in WA state. We own one rental property in Huntsville, AL and under contract for another.

Could someone refer service providers in WA or elsewhere who can help me with the following?:

        - Estate planning. I would like  to make sure our assets are well protected and distributed to our heirs with minimal legal hassles.

- Help with figuring out the best strategy of deciding the right business entities and structure for our rental investments - LLC, S corp, both equal partners, both with different % share, me as an employee? . My husband is a salaried employee and I am a stay at home mom. I have more or less decided that I will have to get LLCs setup for our assets protection. I could delay it until I acquire a few more properties, but, I will want to go that route for peace of mind.

        - Tax planning and strategies.

I figured I would need Estate Planning Attorney, Financial Advisor (Is it some other title who can help with RE entity setup matters?) and CPA. And I would like each of them to be RE oriented. 

I wanted to see if there is one single firm that has different departments handling these and I came across Anderson Business Services. I had the introductory meeting with them, but, the BP members' reviews about Anderson are mixed.

I have contacted mascpas in Seattle, but, they said they can't accommodate me at this point. 

I am yet to contact kolotax.com, Mark Kohler's firm, Corporate Direct Services and Smart Business Incorporation.

I am posting here to see if there is a single firm (or) a group of people who provide this type of service that BP members can recommend.

@Marlen Weber, I will research into the cities on the list , but, most of them seem to be more expensive and already on the higher end of growth than what I am looking for. 

Any other cities that are mid tier now and are on the growth trajectory in terms of population and jobs?