All Forum Posts by: Clayton Plank

@Crystal Carr, I have used it several times. In my case when I was first starting I used it as my down payment for several owner finance properties. I would draw the money and use it for a down payment and then made sure that was the first thing I paid off with my cash flow and then I washed and repeated. I was great because if i wasn't using the money I wasn't having to pay interest. I would pay it back and then not draw the money again until I needed it. 

@Account Closed, Yes I have. I did not have to remove it from the trust. I refinanced with a portfolio commercial loan with this property, another subject 2 property and another conventional financed property. The loan was actually put in my LLC name and the properties stayed in the trust as this was what I wanted. I had to use a local bank and I made several calls to find a bank that would agree with what I want.

@Tim Kaminski, I haven't ever had a FHA loan require the separation of the utilities. I agree they are best separated. If you are purchasing a unit that needs work and meets the requirements for 203k you can include that scope of work in the work estimates. They are not very picky on what you want to repair as long as the work is done by licensed contractors and the numbers are there to cover the cost.

@Steve Cady, that is a great idea. I did this with just buy and hold properties. I would use the HELCO to purchase a buy and hold that needed work. I would do the work and get it fixed up and then get it rented. After 6 months to a year I would refinance it and draw my HELOC money out and then start the process over. I just didn't have the time to manage fix and flips at the time. Your idea is great as you could pay cash for your rentals and them not be mortgaged like mine.

@Mark Benevento, I use Quickbooks. It is a little work in the beginning setting it up for rentals. But, after it is set up it is amazing at the reports you can run. There are several people that sell books on setting it up for rentals. 

@Eric Percival, how much rehab are you needing. If the house is worth it they should loan on the house as a first lender as you are paying cash and don't have a mortgage or other liens.

@Aaron Desimone, Start from the pipe exiting the house and dig it back to find the septic. Talk to the city and see where the closest city sewer is located. It may be run in front of the house but the previous owner didn't want to pay to hook into it. If it is not close you may want to start looking at the process of installing a new septic (not cheap). And lastly, would it be worth working a deal with the neighbor and sell it to maybe make a profit or not loss any money and move on to the next one. 

@Michael N., Yes some banks are catching on to the house hacking. Could you maybe move out with a family member and rent the unit you are in for a few months so you can now show that property as an investment and not your home any more? Or maybe look for none conventional financing to purchase the new unit and then refinance it as owner occupied. 

@Sergio Rodriguez, I have had the best luck with my rentals listing during the summer. We try to only renew or expire during the summer months. This allows kids to be out of school and easier for families to move. Also college is normally out or relaxed during summer as well. If we have a unit come vacant during a non summer month when we rent it we try to only do a lease term to get us to a summer month and then renew it then for a year (I.E. if we rented in January we would sign a 6 month lease to get us to the summer and then renew a year lease with them at that point.) Winter sucks to move in as its cold and so many holidays. 

@Christopher Anello, Jaxreia.org. I am off on Mondays. Just need a few days notice.