All Forum Posts by: Jim D.

Even if you're going to live in it and manage it, you should run the numbers as if you won't be living there or managing on it. That way, you can see how it will perform on its own when you move on.

My biggest mistake on my first purchase was vastly underestimating the capex and maintenance costs, so I would be hesitant to tell you to reduce the budget there. $1200/month may be a little high, but I bet not by too much in the long run.

As long as you are financially stable and keep good cash reserves on hand, I don't see any reason why you'd want to let your money sit around unemployed. 

Do all the regular due diligence required, and if it's a good deal there's no reason to wait.

I've never seen anyone approved for a loan with zero income, but my bet is that a local bank may be able to make it happen if you explain the situation to them, since your other stats are all strong. The two-year requirement for self-employment or commission only folks is a major PITA for those of us who are less inclined to 9-5 work.

If not, I think your best option would be to find a co-signer.

I had to kick some smokers out of a rental once. The smell was pretty light, but I noticed it. I purchased an o-zone generator from MaxBlaster; that combined with a strong vinegar scrub on the walls and floors did the trick. MaxBlaster says it will work to get rid of heavier smells as well, but thankfully I've never had to try.

You can borrow it if you want to pay for shipping :)

I've typically assumed that summer is the best time of year to have a tenant move out, since there seem to be more people moving during this time and more potential tenants to fill the spots. I've only had one winter vacancy, and it was indeed a little harder to fill than usual. However, I've never seen any data to confirm this. It also doesn't make sense to me logically because if more people are moving in the summer, then there should be more open units you're competing with as well.

In your experience, does the time of year affect how hard it is to fill a vacancy?

Some might disagree with this advice, but if you already know a decent amount, I think the most important thing you could do would be to buy something. Take all the knowledge you have about how to buy well and do it. The amount you learn and the confidence you'll gain in the first year will be far more than you can get from reading (though of course that is very important too). 

It's hard to go too wrong if you buy a solid house and get roommates to live with you.

I think they may still have a few hundred dollars left. 

https://www.americafirst.com/loans/home-equity-loans/investment-property-loans.cfm

I'd take the money now as well. Dual ownership makes things complicated because you both have an interest and want a say in how to run it, when to sell, what repairs to do in preparation for the sale, what offer to take. Hard enough with a regular business partner; perhaps harder with an ex.

I'd go for the clean break and let her buy you out at the recent valuation of $640k.

 
In most states you should be able to find a credit union or local bank that will go to 80% LTV for a HELOC on a rental property. I just pulled $75k from my first rental using one. Rate was 4.49% with $155 closing costs.

I haven't heard of adjustable rates going through the roof anywhere else... what is your current rate at on the HELOC?

Sounds like you need to call a lender and see if they can do something for you even without any W-2 income. If you have rental income history on your rental and own it free and clear (I think that's what you said), a local bank may be willing to do a fixed 30-year loan under 5% interest.