All Forum Posts by: Jennifer Delmore

Thanks. My husband called our mortgage broker and the credit union our current HELOC is with and between the two of them we may have something figured out. Adding these 4 would take us to 9 doors. Our goal is 10 (for now).

We are looking for options to do a HELOC on our 4-plex in Colorado Springs (so we can buy another 4-plex - :) ). Does anyone know of any banks/credit unions that offers this?

Or - that will do mortgages on investment properties with less than 25% down for a 4-plex?

Thanks for any guidance.

Hi

Our first rental was our primary residence. we moved out of state and are upside down on the property so we started renting it out. Rent covers the mortgage (plus a little) so it's working out okay for us so far. Second, we saved up for a few years and pulled from our HELOC on our new primary residence for the downpayment on a 4-plex. Hoping to pay back the HELOC in less than 2 years and then repeat.

That works while you’re living there but not having. A shower will turn off a lot of potential guests. And when you transfer to another base and rent the bottom I wouldn’t factor in any STR income for it since you can’t make your tenants accommodate that. If the numbers work without the Airbnb it might be worth a shot but you need more definite numbers for rent and expenses.

I wouldn't rent an AirBNB that doesn't have a shower.  Would the guests have access to a different shower in the house?  

To keep it cleanest, I would think your sibling should pay market rent for the separate business space and they get their share of the profits from the building as a whole per your agreement.  Anything else leaves room for bad feelings that someone is getting taken advantage of.

We just had to provide a signed lease (even month to month) and they count 75% of the rental income to offset the mortgage payment on the property for debt to income ratios.

Originally posted by @Eric James:

What area is this in and is there much chance of appreciation? I guess I'm a little surprised if there are still areas that haven't recovered since the housing crash.  Back around 2010 there were a lot of people in your situation.

 I'm still upside down in my rental in a Cleveland suburb.  But my tenant pays my mortgage, property manager and a little extra so.... 

The title company will handle the closing and collection/disbursement of funds.  Talk to them about the timing in your state.  Closing timelines can vary somewhat by state.  In Ohio we all signed closing papers at our discretion with the title company (they actually came to our house to do ours) and they collected our down payment/closing costs check at that time which was a couple days before the sale was recorded.  I don't know how quickly the seller got their check/wire for their proceeds.  In Colorado they do "round table" closes so every shows up at an office (ours was at the selling realtor's office) and everyone signs their papers at the same time and the buyer brings their check, and the sellers left with a check or a wire confirmation at the end of the closing.  

Unless I was gutting the whole place I'd pay for the inspection.  When we bought our current (primary) home we didn't see any surprises in the inspection report, but did manage to negotiate for a new hot water tank/heater - which we knew was at the end of its usable life when we saw the house in the first place.  The seller left the new hot water tank in a box in the basement (which -  Who DOES that?) so two weeks after we moved in my husband had to spend half a day taking the old one out and putting the new one in, but that's a different problem.