All Forum Posts by: Jerry Mical

That is great information to know. That will have an impact on my DTI calculation for the cash-out refinance. I would be curious to hear from those who have gone down the BRRRR path on if there are ways to get around this for the DTI.

Thank you for the reply! This is what we were leaning towards doing to make sure both parties had legal rights in case something went south. Ultimately, we are on the same team but mixing family and business can get dicey from what I have read of others experiences. 

Curious, is there any reporting requirements that would lead to this private lending showing up on a credit report? I assume no, but worth the question.

Hello all!

As the title states, how do you set up your deals with an out of state family investor? Do you get everything written up by an attorney? Is the cost of an attorney worth it? Being that I am in Charlotte, NC and they are in Louisiana, are we looking at needing two attorney's to make sure we are covered in each individual state? 

Contemplating a BRRRR deal with my parents where they would essentially provide me a LOC with them and I would provide an 8% annual return. Ideally, I buy the property and complete the rehab with their money and then find a tenant and cash-out refinance to pay them back the principal and interest. It seemed pretty straightforward at first when we discussed the possibility. But now that I have a potential deal for two properties on the table, it feels like there is so much more involved. Questions that have arisen: Do we need an attorney involved? If yes, do we each need a separate attorney for each state? Would it be easier just to figure out some sort of equity split rather than this lender/borrower relationship? Are there things I haven't yet considered yet (I am sure a million things)?

It all feels like there is just so many unknowns as this is my second deal after my wife and I purchased our first rental through conventional financing with 20% down. I want to make sure we get this right legally, and I want to make sure all parties are satisfied in the full transaction. At first it seemed like a simple "Oh parents you can invest in your son and I can provide you with a return, what a fun and easy way to do business with family without having to argue back and forth on what color backsplash we get for the kitchen!", but has since delved deeper into unknowns and now I am looking for any and all feedback on your best practices for how you have accomplished out of state family investor deals.

Any real estate agents or realtors in the King's Mountain, Crowder's Mountain, Grover, and Archdale NC markets? or in the Gastonia or Blacksburg, SC markets? Just looking to chat with fellow investors in the area.

Thanks!

 Hi Joe,

I am very interested in tiny home communities and have been doing research recently in the prospects of building one in the Carolinas or the Smokey Mountains in Tennessee. I feel like I have ideas pop in and out of my brain all day long and it would be awesome to speak with someone actually doing this type of work. Would love to schedule a phone conversation with you if your offer still stands. 

Best,

Jerry

Hello BP!

Looking to engage in some discussions with fellow BPer's about these markets as the crazy market in Charlotte (and across the U.S.) has me considering options nearby but not too pricey. I have been following the Hall Analysis of the Gastonia market that Josh Stack has been putting on and it has been enjoyable to follow. Gastonia is starting to get quite pricey and while I don't think I would be buying in at the top of the market, I would certainly be buying in at a premium. And that is where I landed on the King's Mountain, Crowder's Mountain, Grover, and Archdale NC markets. My strategy here would likely be to buy and use as an AirBnB. These markets offer hiking, nature, golfing, and the future Two King's Casino. Something close to the mountains and the casino (Archdale area) would be highest in demand in my opinion.

Does anyone have any experience over there in that market? Would love to hear your thoughts and see if I am looking at the area in the wrong lens. I have been to Crowder's Mountain a handful of times but no further time spent around there. It is certainly a nice escape from the hustle and bustle of Charlotte.

Best,

Jerry

Hello Charlotte, NC wholesalers!

I am in the market for wholesalers with properties inside of 485. Not looking outside in the surrounding areas. If you know of any, please reach out!

Best, Jerry

Hello all,

I have been researching Section 8. I understand there are a lot of strong opinions on both sides of to rent to Section 8 or not to rent to Section 8. My wife and I have decided we want to pursue it for various reasons, of which are not the point of this post.

We are curious about how the rents work for Section 8 in Charlotte, and I can't seem to make total sense of it. Per the screen shot from the HUD website (https://www.huduser.gov/portal...) , for a 4 BR the Fair Market Rent is 1,840. We were looking at advertising our unit for $2,100 and so my question is if we do so, will HUD cover $1,740 (FMR of $1,840 minus utilities of $100) and then the renter would be expected to cover the $360 to meet our rent price of $2,100? I feel like I am missing some data here or not considering an important part of the calculation. For what it is worth, our property is recently updated and has good amenities (washer/dryer, fridge, new dishwasher, oven/stove, big fenced in backyard, patio, fire pit, and a driveway that can fit 4-5 cars).

If my scenario is correct, based on anyone with experience in Section 8 housing, will there be potential renters in the program who will meet the HUD requirements to be eligible for a property over the FMR for a large 4BR unit? This is likely a question for my local HA, but figured I would ask if anyone has the experience.

Thanks all!

Jerry

Hi all!

I have been looking into potential financing sources to purchase my first investment property. A few questions/scenarios:

1) If our mortgage for our personal residence is under my name only, but my wife is on the title to the house, could she take a HELOC out on the house that would only show up on her credit report?

2) If she can, could we then utilize the draw on the HELOC for the 20% down payment to get an investment property only under my name?

3) Do lenders typically even allow a HELOC to be used on the down payment of an investment property?

The scenario is my wife is a 1099 contractor with little income and so her DTI doesn't help us get the investment property. Our personal residence mortgage is only on my DTI calc and I have been pre-approved to purchase this investment property a little above listing price. My lender said there is not much wiggle room to go up from there. I want to use the HELOC on personal house for my down payment on investment property. I realize if I take it out in my name that it would affect my DTI and potentially disqualify me from the loan. Though I suppose I could just pull more from HELOC and increase my down payment until the DTI works? If need be, I can find other financing sources (401k loan, savings, PML, etc) but I wanted to look into the HELOC option if it were available.

I appreciate your thoughts and feedback. I am still taking in all the learning and knowledge I can possible find.

Thanks,

Jerry
 

Thanks for the reply, Joseph. The thought process for cash purchase was to hopefully be able to squeeze the seller down and buy the property lower. I had not considered taking a loan out for the renovations and ultimately that may make more sense to not tie up capital. I will have to dig in and think about it.