All Forum Posts by: Jeremy H.

I agree - I use the paid version as well. When making an investment that costs tens of thousands of dollars upfront, I tend to think that spending a few hundred dollars to make the best decision is wise. 

Second home for a lower percentage down/Use 401K loan (up to 50K)/HELOC loan if need be - that'll get you up there on borrowed money

I'd personally be fine with it, but my wife wouldn't... Rental it'd be fine. Selling I think also fine, just give yourself a little more leeway and it might take a little longer to sell. Cause you can never move that cemetary...it's gonna be there forever

I'd be interested to know what the loan terms are on a 90 day cash out refi. 

I've came across "delayed financing" where you have to leave 30% down but can get your $ between 0-6months after closing (can file for a loan the same day as closing if you wanted to), traditional cash out refi but have to leave 25% down, and some creative financing with a portfolio lender (generally the best I can get is 20 year amortization, 5yr balloon payment and slightly higher interest rates). 

The traditional and cash out refi you can get residential (assuming it's a residential property) loans, fixed 30yr, low rate etc...just have to leave a bit more in the house and wait 6 mo. 

I think it sucks but it makes sense...it's all a risk thing. Either show the property is fixed up/stable/rented (something positive) or leave a lot more money in w/ a higher interest rate (basically the bank is going to mitigate risk one way or another). It does make it difficult to access capital even if you're a high earner. 

We have banks here that will lend you up to 80-85% of the appraisal value on a flip - but the loan terms suck relative to residential loans. 

Hope all is well everyone's way - I'm reaching out to see if there are any awesome real estate specialized CPAs that you all like? Ideally in the area - I like to know who I'm dealing with this early in the game, down the road might make more sense to go remote.

I've got my first year of RE investing down (actually picked up a couple properties somehow in this market) and have come to the next hurdle. I'm hoping to find a CPA that has good tax preparation strategies when it comes to taxes and experience is ideal! 

I have read through this thread: https://www.biggerpockets.com/... (a bit dated, so I figured I'd make a new one since it's tax season). 

As always, let me know how I may be able to help you, thanks again!

Well I live in a slow growth area unfortunately - south Louisiana.. One of the only places that doesn't seem to be appreciating as much as a lot of other places...there are many reasons for this. We have certain smaller sub areas that are exploding but overall the place is somewhat stagnant. But rental and house demand is insanely high right now and good places last maybe a day on the market. 

Just actually bought a fourplex - previous owner hasn't changed the rent in 4 years and each unit is $75-100 under market (market would be a 15-20% increase from their current rates). A/B geographical area, C class circle street - if that makes sense. I think having a good prop manager, decent property, central location, and doing your due diligence is a key in this industry. Have to trust but verify that your prop manager is doing their job and increasing rents w/ the market.  

That being said I increase rents every 2 years at minimum - I'll give you a year at the same rent if you're a great tenant but after that expect a 5-10% jump. A troublesome tenant can expect an increase up to full market rent. 

100% agree with @Nathan Gesner - this is a business at the end of the day. You may end up with better tenants when you charge a higher rent as well (in this case you definitely should). 

I would attempt to hold her liable for some percentage of the damages as well. They are her responsibility and they were caused by her. I have heard too many sob stories - and many of these people will try to take a mile if you give them an inch. So do not budge, do not get in your feelings and treat this strictly like a business. 

I do replacement cost - yes it may be slightly more expensive but can save you majorly in the event of something big. 

From how I understand: Lets say you have a 20 year old roof and a hurricane comes and destroys it. Replacement cost would get you a new roof less your deductible. Depreciated policy would give you the cash value of the 20 year old roof less your deductible. 

If your roof life is 30 years, you're only getting 1/3 the replacement cost (10 years left on your roof life) less your deductible - this could be thousands. 

Now imagine this scenario with a fire that results in a total loss. You can see where this is going pretty quickly. And think about how lower income people often live add on top that it's not their property. Good idea imo to always have full replacement cost - less stress and risk. 

I would sell - primary reason being you're a new investor and this property is far away. Essentially you'd be starting out with a long distance rental. Is this bad? No. Is it the easiest way to start out? Also no. There can be a lot of things pop up that you don't know simply because you don't know they can happen. 

IMO - save the headache, budget that 20-30K and put it into a local property. The key here is budgeting the 20-30K. Use it for the new house and you're back to square 1. That will be a much easier way to start out, understand what you're doing, build confidence and repeat.