All Forum Posts by: Isaac Pepper

@Brady Hlad I have a rental in Zanesville. All the utilities, (gas, water, electricity) are in the tenants name and and paid for by the tenants.

@Gayle Melnick I dont know if any rules are in place against this, but I told my seller on the last property that I was using it as a rental and wanted access before closing to have an open house. He granted my wish so I listed it, showed it, closed on it, and had tenants in 2 days later. No problems. Only way it could have been better is if I took the utilities from the sellers name and put in my tenants name! Of course this only works with a flexible seller and a turnkey property.

I would list it, just dont commit or promise anything to any potential tenant. I mean if you have tenants moving out of a property do you wait until they are moved out before listing it? I dont unless the unit needs a lot of work before turnover.

@Austin Snow a lot of good advice here.....I will add that I think it's best to have a lease that spells out the consequences of an action apon signing. This way everyone is on the same page on how things will play out. It also eliminates questions from the tenants. "I am going to break the lease, what do you need?" "Ok thanks for letting me know, please refer to the lease, #-x section-x."

@Chris Green I am currently working to close on a cash out refi on a SFH in the Putnam area, and it's only worth 30k. I'm working with Century National Bank, who just became part of Park National bank. It's not my first loan thru them for investments. My contact there is Jason Newton. Look him up or PM me for his contact info.

@Blaine Alger it is the same process for a cash-out and a traditional. The only differences I see here is:

1. Your appraised value will be more after a significant rehab

2. A refi usually offers 70-80% of value so if you just paint some walls and replace the carpet your probably ending with less liquid capital after the process

Also keep in mind if you buy with cash and you chose to have an inspection, appraisal etc, make sure to use ones the bank you are lending from approves. And know the expiration time so you can avoid paying for them again when you refi.

@Mike Lee If you have made the decision to replace upon turnover, I think it really depends on the rent amounts and how much value offering appliances adds. Some market areas dont have a large difference in rents for appliances being provided by the landlord. This is probably not the case but if it was simply removing the appliances might be the best option.

Going to a store that offers financing on appliances (or a credit card to purchase them on), and calculating the cost into the cashflow would be a good start. Take into consideration costs savings of repair work on old appliances, cost of financing of new appliances, and the potential increase you can charge in rent for the added value.

If you pay for utilities, energy efficient appliances would be an incentive.

Hope this helps!

@Steve Morris

By shopping for my own title work, I deal directly with a title company of my choice and have them send over everything required. And because I closed on this same property 6 months ago, the title company has already completed 99% of the work. And because I've built repport with this title company I'm only paying $100 and the required $125 for the lenders title insurance policy. No other bank was involved. This keeps my lender from marking up the fees for title work.

@BJ Marshall

To start, every bank is different. But what every bank has in common is that they make their money on fees.

I'm currently in the process of closing a cash-out refi on a property I bought with cash in February. I was referred to this lender by a member of my local REIA, and have a HELOC thru him now on my primary residence.

The initial documents the lender sent me were any and all possible fees they could charge for this loan. This does not mean all fees will be charged. So from there I request the appraisal ($500 non-negotiable). And then once the appraisal comes back, we sit down and hash out the exact amount in closing costs that will be subtracted from the closing amount. If we move forward I cant negotiate the cost of flood determination ($6), credit report ($50), tax service ($75) wire transfer ($25) or commitment fee ($899). I can then pay their awfully expensive title work and survey fees or shop for my own. I chose to shop for my own and saved considerably. It has been my experience that you can negotitate how much is held for escrow as well. If we dont agree, I pay for the appraisal and go on my way. If the next bank accepts the same appraiser I dont pay for it again.

In the case of a preapproval it has worked for me similarly. Just speak to the loan officer/originator and ask for an explanation of the fees and if they will be necessary to close. If you feel your being jerked around or get the "you just have to pay them" or similar, seek a different lender.

Hope this helps!