All Forum Posts by: Jason Y.

What are the restrictions on taking a HELOC from a primary residence vs taking a HELOC from an investment property?

I heard that HELOCS from a primary residence is usually used for remodeling and cannot be used for investing in another property. I am trying to verify that statement but can't find the answer. The idea is to take out a HELOC to outright buy an investment property in cash. Does it matter if you take the HELOC from primary residence or from investment property? Will one have lower interest rate or favorable rules vs the other?

I read this article and it says that HELOCs from investment properties are harder to get but HELOCS don’t have restrictions on how they can be spent.

https://www.lendingtree.com/ho...

I'm thinking of investing in real estate Georgia or Florida. Price range around $100-150k. The goal is to find properties that need some work, rehab and rent for long term (BRRRR). High occupancy rates would be great. Does anyone have recommendations to areas and also general contractors that work on rehab/repairs in these areas?

Assume tenant has been making several payments and not in full.  It's been about 3 months in trying to get his balance paid off.  I think its been more than fair.  Do you communicate to him that on the 6th, if rent is not paid in full, then the eviction process will begin?

How lenient are you landlords with late paying tenants?  Rent is due on the 1st and late by the 6th.  If they are late, do you start the eviction process immediately or do you wait and see if tenant can get balance paid by the second, third, fourth month?

This is for Charlotte Nc.  I have a tenant who has not been able to make full payment since Nov 2019.  Tenant always owes a balance.  Makes small payments here and there but always has an outstanding balance.  What are the steps to collect full payment and to get balance to zero, as tenant always promises they will pay off balance next week, next week etc.

Can we start eviction process?  I don’t have experience with NC real estate laws.  Or can you only do that when they do not pay rent at all?  

Looking to buy a $150k or under place to BRRRR. Would like at least 1% for rents for a SFR near downtown locations, hospitals and decent schools. The goal is to cash flow so areas with higher rents would be preferable. I heard Baltimore MD or Philly are good places to start but not sure which exact areas. Any recommendations if these areas have high Cap rate or are there better growing cities?

A friend of mine told me about his investment strategy with paying all cash on SFRs and then slightly renovating and then doing a cash
out refinance.  Rinse and repeat.  You get your down back and invest in another home.  I realized that I
been doing it wrong with a traditional 20% down in areas on the west coast, which is typically more expensive albeit higher rents.  It’s just not as fast as buying a house for $150k cash, then getting your down payment money back after doing the cash refi.  Once I get a better idea of where to start, I can interview properly mgmt companies and realtors to start the journey.  Does anyone have suggestions on which cities and states would be decent with a price range of $150k or less?  Hoping rents can get at least 1% or $1500+ per month.  We chatted about Baltimore MD as a start but I know nothing about the area.  Any suggestions on any other areas would be great.  Thanks

Documentation is there.  Jonathan, wouldn’t any tenant report this upon move in if it were damaged?  

I had an issue with my previous management company who just placed a tenant for me for out of state property.  I found a new property mgmt company who inherited the tenant from the previous property mgmt company. We were in transition for one month before the new property mgmt company took over. 

When the new property manager went out to meet the tenant and do an inspection, he discovered that the fiberglass in the tub was cracked. The water spout was bent and it almost seemed like someone stepped on it which caused a crack in the tub. He has children living with him.  I asked the previous property management company if anything was reported upon move in by the tenant because no tenant would want to jeopardize their security deposit and something like this would be reported right away upon move in.  But nothing was reported and the move-in inspection report was not filled out. This is very strange to me. We have pictures and documentation that clearly shows at the house was turned over and clean and safe condition. It cracked fiberglass and damage water spout would not pass safety and clean conditions to be rented.

The new property manager says that the tenant claims that he did report it to the previous property management company, but was told to wait and until he is transitioned to the new property manager and then work directly with the new property manager. Since there is no documentation, we do not want to get into a “he said she said” discussion. 

I got an estimate to replace the fiberglass tub.  It was few hundred dollars. But I’m not comfortable with that because there’s no warranties against future damages or mold which could lead to bigger issues. People in construction have advised me that a full replacement is a better option. The quote for a full replacement is a couple grand. I’m sure this is not gonna sit well with the tenant. Can he fully deny and not pay for this? What are our options other than going to small claims which is probably a headache?

We are using a property mgmt company in another state to manage our rental property. Previously, whenever an application comes in, the property manager would forward us the applicant's information. This includes their name, credit score and occupation, along with other information. We could deny or approve the application. This year, the property mgmt company filled the occupancy without even giving us a notice on who the applicant(s) were. I asked about why they did not ask for our approval and they said they cannot do that anymore due to something called "Fair Housing Guideline" because it puts homeowners and the property management company at risk. I researched this but couldn't find anything about this. I only found Fair Housing Act.

Do those of you who use property management companies send you the applications to review or is this new rule apply to protect homeowners and mgmt companies?  But let's say, in the future, there is a problem with this tenant.  Who is liable since the homeowners did not have any input on placing this tenant in the home?