All Forum Posts by: Jason Jones

There are lots of remedies, and depending upon your ability to fix, you can do most of them.  Otherwise call an old window company or a carpenter to fix them for you.

1) In your pictures your meeting rails are not touching, this is bad if that is how they are regular and not just for the photo.  If they touch, you just need to block the small gaps with felt or foam backer rod or temporary seasonal sealant.  Menards sells this stuff, it works fine, picture of it.  Or use some of the cheap clear plastic film kits that they sell, that would work too.

2) If your meeting rails do not touch, and they are that far apart for real as is shown in your picture, that's much more work.  I have a house where the top pane sunk a little bit and then was painted in place of the years.  So the meeting rails did not touch close enough, a gap was there.  I had to choose whether to remove the staff beads and the partition beads to push that top pane up back into place (lots and lots of work)....or to simply remove the staff beads and take the bottom pane out and cut the bottom a little shorter.  Since the bottom pane was now a little shorter, the meeting rails then touched!  Much less air coming thru.  Granted however, this did not fully stop all the air coming thru.  Some seasonal weather sealant is still needed for some people's tastes....the windows are old.  You can only improve them so much.

@Bruce Runn thanks and I hope to meet you at one of our local group events FB, MeetUp, BP (virtual or eventually in person) upcoming soon!

@Evan Kraljic thanks for the thought on a FHA loan. I have a conventional mortgage now, never really knew much about or considered a FHA loan before. I looked up a bit of info on the web for MN about them, not sure the best for me...but certainly worth asking the Realtor & Lender I end up working with, who should be much more knowledgeable than me in the specifics would be the goal.

@Daniel Anshus thanks for the info, I may perhaps upcoming.  I also look forward to seeing you more as well on our local other venues such as FB and MeetUp

@Jason Jones anyone doing this in the Minneapolis or St. Paul metro area?

All - I see the threads on house hacking, there are many.  One aspect I'm not seeing in them however (that I can see readily) is moving out of the house hack property after 1 year and repeating that multiple times.  One place after the next place after the next.  Have folks found a bit of success in using this route?

I recently moved and the new mortgage I checked it has the "standard" language about intending to live at this property for 1 year.  The interest rate I got was lower because it was sold as an Owner occupied mortgage, I would get to keep that lower rate mortgage if I moved out at say 18 months right, the bank wouldn't want to raise it?  I'd have to change insurance type over to fire/shell I know that.

Could a person just keep moving after 12 months, renting out the old place, and buying a new place to Owner occupy? Until probably they hit their limit of what the banks would allow for their DTI debt to income limit and the bank wouldn't want to give them another mortgage as the debt would be too high as compared to the W2 job income?

Thanks!

All - I have been doing my research about my options to fund our 2nd rental property purchase, I have been calling some local banks, and would like some help/info please. Our former primary residence SFR in now our current 1st rental. The 1st rental is valued at $440k by a local Realtor market appraisal in March 2020, and we currently owe $6,000 on the remaining mortgage....a very high equity in the house for sure.

To fund the purchase of rental #2 I was planning on pulling the 20%-25% down payment out of rental #1 via a HELOC on the rental, and after 3-4 places to call no one will do a HELOC against a rental except PenFed. I read this may be the case on other forum threads, but I thought I'd try anyways, and it is true! Local banks have told me they are very likely willing to give me a commercial line of credit instead of a HELOC, using the rental #1 as the collateral. The value of the 1st mortgage is so little ($6,000) that they are fine being in 2nd position for a few months time until it is paid off, and then they become in 1st position I guess.

PenFed will do the HELOC against the rental (pending approval) for 4.75% currently, whereas a couple local banks will do their commercial line of credit for 4.00%-4.5% depending on the line of credit size amount. Each place has their own slightly differing terms on an origination fee, and the like. And if I were to sell rental #1 down the road not overly far into the future, closing the line of credit early and paying off the line early by selling rental #1 also has fees and costs to that as well.

What is the difference, pros or cons, of using a commercial line of credit against rental #1 to fund the 20%-25% down payment (plus a little repairs money) for rental #2, as compared to using a HELOC against rental #1?

Thank you - Jason

@Brian G. @Noah Chappell @Bruce Runn

The book learning and reading forums learning is starting to make more sense and sink in a bit I think!

Nothing is set in stone for decisions as I still continue to learn and have time, but since my current SFR is leased thru the end of July 2021 I see two main paths for my preferences and situation. 1) I wait until August 2021 and sell the SFR house outright, avoid the 121 tax hit of capital gains, and have a sizeable large amount of money to sit in a Meryl Lynch account making 2%-3% while I pursue and purchase duplex's/triplex's slowly but surely in Fall 2021 and beyond. 2) If I want to buy duplex's/triplex's before Fall 2021 I could find a bank for a HELOC against my current SFR, to put 20%-25% down and fix costs and buy that new property. Then come August 2021 I could still sell the first SFR that has the HELOC on it, and still avoid the 121 tax hit for capital gains. And use the proceeds of that sale to pay off the HELOC and still have a bunch of money left over to place into a Meryl Lynch account making 2%-3%, and then waiting for the next duplex/triplex to buy....probably in 2022 I'd bet. I read that 1031 exchanges have a 180 day total maximum time frame, that seems short, this does not seem desirable situation if I don't really need to use it currently to me.

Does #2 work logistically wise and makes sense wise?  Would the banks let me do this?  

I read on the BankRate website that most HELOCs don't cost too much to get them approved and set up (if I could get one in current financial environment from a bank), and the money into my hands. No closing costs and the like that other loan forms have. And since it would be for a shorter duration, the little bit higher interest rate that a HELOC would have as compared to a cash-out-refinance wouldn't really matter much it doesn't seem.

@Bruce Runn

Bruce back when working in the office was more normal, I would often leave work and drive by your place on Grand and 35th on my way to pick up my 2 girls at daycare.  I recall the construction progress of it decently well from a bystanders point of view.  It has a very nice appearance finished!

@Daniel Anshus thanks for the Bridgewater name. I will check into them for a HELOC.

The realtor that we bought our current live in residence with I asked him what he'd charge me plus other costs if we sold our Uptown Minneapolis SFR. He said figure 5% for his fee, and 3% for other bank and misc fees and such....totaling 8%. I have not sold a home before ever, so I was looking for a round number or percent to use. Didn't want to get into the weeds of everything exactly to the penny when all I wanted was ballpark numbers, or do research on these BP forums or another website. I was looking for a quick round number.

Bruce the SFR is located in Uptown Minneapolis. It has been a single family house it's whole life since 1896. It has never been broken up into separate floor units or a duplex. I also have no interest in doing that breaking up to the house.

I might need to talk to another bank or two around the Twin Cities area for getting cash out of the current SFR. I spoke with Bell Bank and a the loan officer person who we got our current residence mortgage through, they seemed very knowledgeable, and they told me that most banks were being super cautious due to uncertainty. They said no one was offering HELOCs currently really, and the best way to get money out of the equity of the SFR would be to get a secured first mortgage against it maximum 65% of the appraised value....this costs more in fees, about $10k in total I was told just to get the money, and I'd end up with about $265k at 3 point something interest rate.

Any recommendations for banks that will do something other than a secured first mortgage? And I can only really remember the term of a HELOC loan...basically a credit card type situation with the house being used as the collateral if I remember correctly.

We were non-typical personal residence buyers for this house that is now the SFR. Bought it at the tail end of the last downturn on a short sale, in rough condition. Bought it low price. Lots and lots of personal work and money for the materials went into fixing up the house. It's now worth just under 3 times the amount of money paid for it back then.