All Forum Posts by: Jewel Coleman

I currently have a property in a low income neighborhood. My last tenant decided to move out early without paying off the rent, damage the place, and leave all of their unwanted items behind. I plan to keep this property, so does anyone have any advice for avoiding this again?

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I bought my first rental property last year then accepted a job offer out of state. It has become overwhelming maintaining a rental property out of state when it comes to finding quality people to work for me. The house was work $61,000 before repairs and I put about $30K in to renovations getting a new roof, new floors, electrical, etc. The house has a tenant renting for $750.00 who has already renewed for another year. I would like to sale the home now, however the neighborhood has not appreciated very much to get a great ROI. Any advice on how to sale the home a decent price point?

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Originally posted by @Nathan Gesner:

You should have a reserve fund saved up to cover maintenance costs. If you don't, you're doing it wrong and exposing yourself to increased risk of things going south.

Personally, I would recommend you save up the money to pay for what you want done.

Thank you for your feedback! I do have a reserve fund for the house, however it is not enough to cover the roof repair that was quoted to me. So I'd like to know what other options I can look in to that doesn't require using all of the reserves or use it along with other funding.

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Originally posted by @Andre Taylor:

Hey Jewel! If you do not want to use your own funds and not pull equity out of the property to replaced the roof the last option is sweat equity. Unless you have a good relationship with a roofer where you can do a barter system. For instance I bought this Bosch refrig for $400 from lowes and reason I got it for a discount...it was a special custom order and the person never picked it up and i actually negotiated the price down from $800 to $400 from the manager that day but fast forward. I did not need the refrig for any of my rentals so I gave it to my plumber in exchanged for $1500 worth of labor. If you have a good relationship with a roofer try to see if there is something else you can trade him for their service. Now me personally i am the type to just get the whole roof done. When a roof start showing areas of attention its best to just redo the whole thing. A roof is one of those expenses you love and hate because it cost so much but not like you going to see the instant gains in the rental income; as a tenant not going to pay extra for a roof that expect should already be in good condition. Another thing you can get a Business Credit Card with a zero percent interest for about 12 months to pay off the expense of the roof over time.

I don't personally know a roofer. I have already had it inspected and received a quote to repair the roof. I have some funds I can put toward it but I don't want to exhaust all of the funds. I will do more research on the options you've provided!

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Originally posted by @Will Fraser:

Hi @Jewel Coleman! The short answer to this puzzle is: the money has to come from somewhere (if your insurance won't cover the replacement and any repairs if they were due to a failed roof). That would either be cash money out of your pocket, equity from your property (tapped through a HELOC, HELoan, or a refinance), or cash money from somewhere else (private equity, a personal loan, etc).

So basically, it's either going to have to be paid by insurance or from cash/equity.

Regarding the LLC - I've generally understood this to be a good move, more for legal protection than credit score optimization. This is because most, perhaps all, recourse loans look past the loanee and to the guarantor when making their loans, so if you had 10 different LLCs and one guarantor behind them, then the bottleneck may still end up being the financials of the guarantor.

I hope these 2 cents are helpful!

Thank you so much for your feedback! I am going to give my insurance company a call and weigh my options.

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I have a rental property that is doing well. Now I would like to replace the whole roof of the house. There are a few areas that need immediate attention and instead of doing patch jobs, I'd rather take care of the whole thing. What are different options for getting funding for this project without using my own funds? I am trying to avoid pulling out equity I have invested in the property. I have also been thinking about starting an LLC to increase my buying power and building credit in my LLCs name. Is that a good idea? Other ideas?

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Do I need a building permit to renovate my home? If so, what type?

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Should I get an LLC when beginning in REI? If so, how does that work?

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Thank you guys for your your reply! @Anthony W. I plan to keep it as a rental property.

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I have a property that I recently purchased. I am in the process of renovating (putting about 20k into it). I would like to do more upgrades on the house, but I am not sure if I should get a hard money loan then refinance once I am complete with the renovations or wait out the "seasoning" period then take out a cash out refinance.

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All Forum Posts by: Jewel Coleman

Jewel Coleman has started 9 posts and replied 16 times.

Post: Advice is there for renting a home in a low income neighborhood?

Post: Need Advice on Selling Rental Property

Post: Fixing Up Rental Property

Post: Fixing Up Rental Property

Post: Fixing Up Rental Property

Post: Fixing Up Rental Property

Post: Building Permit to Renovate Home

Post: Starting an LLC for Real Estate Investments

Post: Cash Out Finance or Hard Money Loan

Post: Cash Out Finance or Hard Money Loan