All Forum Posts by: Wesley C.

I know most of these tiny houses are self contained.  (compost toilet, gas stoves, etc).  I certainly don't know the ins and the outs, but some of these folks might have insight:

http://tinyhousetalk.com/communities/

http://www.tumbleweedhouses.com/

http://tinyhousecommunity.com/

Not sure if this has been suggested, but how about a "Tiny Home" community.  These things are big near urban areas.  You can get around building codes because they aren't buildings.  You could build a few and rent them out and rent some spaces out if some people want to bring their own.  Maybe a walking trail around the development for dogs and a community garden.  Lefties love this kind of living.  A little kumbaya around a fire pit on the weekends.  A few bike racks.  Maybe some Prius parking.  I think it would be a hit.

Did you consider a cash out refi?  If you think it is a good rental, you can pull equity (tax free* since it is basically a loan to yourself and not income) and you can reinvest in another home.  As long as it still has positive cash flow this could be a good opportunity to build your portfolio.  Or if you sell you can do a 1031 exchange to defer taxes.

Paint it, new pulls, prefab vinyl top if size fits.

I'd say this is an arrangement you need to make on the front end.  Terms need to be defined.  Typically a contractor breaks down the cost of a job by labor and materials.  In such a case, the materials are yours.  However, a contractor might give just one price for a complete job.  In this case I would say you should not expect any of the materials as he might be planning on using materials he commonly uses and buys in bulk or he might be planning on using them for another job.  

If you are using a friend, I'd think a simple conversion could clarify all of this.  If you trust him and the job is small, you might not want to get to picky or technical.  But if you are dealing with big expenses, make sure everything is in writing. 

One last word:  proceed with caution when employing friends and family.

Something to look into @Ryan Inman.  That's the kind of thing I'm interested in.

@George P.   If I understand she didn't have a mortgage, she paid cash after borrowing from Prosper.com.  These loans are not mortgage loans.  They have a repayment period and aren't usually as favorable as a mortgage.  Thus, the creative financing part.  She was able to pay off the prosper loan, which was likely required in that amount of time.  Great job, Dawn.   And congrats on your success.

I'm interested in different perspectives on cash out refinances on rentals. Generally speaking, do you cash out as much as the bank will allow, or do you leave some equity in the property above and beyond the 20% or whatever the LTV terms of the loan may be. This question assumes the property still has positive cash flow after the refi.

Real estate is cyclical, as you know.  2015 has been a great year in my market.  I'd feel better about listing in November of this year than March just two years ago.   Right now you know you have the luxury of a good market if your flip is quick, but what if there is another Lehman type even in January and the market goes cold.  You just can't plan for that.  

@Bill Gulley

I'm not sure if you were speaking to me, or just educating in general, but thanks for the input.  In this case, there was no need to do a sales pitch as he offered before I could even finish my sentence.  The agent I met today was very aware of all of this, which is why he jumped at the opportunity.  And it was very pragmatic of him to do so I might add.  Had I been a newbie or didn't know completely what I was getting into, I wouldn't have tried this and I'm sure he wouldn't have offered as this could be a huge headache for him if I were a first timer asking a million questions and calling him 100 times a day.  He and I spoke and he explained the terms and I communicated my expectations.   He explained to me that in TN it is no longer called dual agency, but rather he becomes an "intermediary" and thus is unable to provide expert advice or guidance.  The seller is also an investor, so the agent in question doesn't have to do much heavy lifting.  As you stated, there are very good reasons indeed for him to go along with this, especially in this case.

Now, I'm not saying I will approach future deals this way, but if the seller's agent has any common sense and I'm ultra comfortable with the property in question, I'll probably try this again.  Several people on here seemed to insinuate I'd be taking money from this agent's pocket or that I'd insult him.  I'm a pretty nice guy usually and I'm presenting someone a way to actually make more money, so I'm not sure how that would be poorly accepted.