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All Forum Posts by: Jesse Waters

Jesse Waters has started 6 posts and replied 389 times.

Post: LARGE Tenant Issue! ADA conflict?

Jesse WatersPosted
  • Investor
  • Aiken, SC
  • Posts 398
  • Votes 120

@Andrew R. Lucas Thanks for your opinions.  We have decided to wait until housing does their inspection and see what repairs need to be made.  We have already replaced a tub, re-enforced a floor and have noticed some depressions in other parts of the floor.

Post: Do you include principal paydown in return?

Jesse WatersPosted
  • Investor
  • Aiken, SC
  • Posts 398
  • Votes 120

Generally, I include principle pay down in my IRR. I include it so I can get a better picture of where money is going as part of the big picture vs cash on cash. Generally, I don't use it when evaluation a property prior to purchase, since I just want to determine if a property is a good deal or not I'll just look at P&I as an expence.

  It doesn't go away if the market goes down, your equity position would just shrink.

Post: LARGE Tenant Issue! ADA conflict?

Jesse WatersPosted
  • Investor
  • Aiken, SC
  • Posts 398
  • Votes 120

I have a rather large tenant in one of my units, he is around 500lbs and on housing assistance.  Shortly after he moved in he managed to put a foot through the fiberglass bath tub, which we replaced with a cast iron tub.  His lease is now set to expire and we have given notice that we will not be renewing his lease.  Mainly because his weight is causing too much damage to the property and he really need to be in a place that has a slab foundation not a crawl space.  

This one is a new one on me. 

Do any of y'all seen any issues or hang ups with us asking him to leave?  

Tenant is near Columbia, SC.

Post: SC Network

Jesse WatersPosted
  • Investor
  • Aiken, SC
  • Posts 398
  • Votes 120

@Jayson Hinkson I'm currently living in one of my rental's, sounds about in the same area as your's.  We will be looking to sell it once we are finish building our house off Banks Mill.

For anyone looking for a rental in Aiken, we will be selling in a few months.  3/2 1600 sqft with a good history.  Rents $900-$950.  Shoot me a PM in interested.

Post: SC Network

Jesse WatersPosted
  • Investor
  • Aiken, SC
  • Posts 398
  • Votes 120

@Jayson Hinkson Always on the look out for something good.  We are starting construction on a new residence & closing on our previous house on Friday, had to move into one of my rental's to cover the gap.  Would like a bigger foot print in Aiken/Augusta/N. Augusta but I have had better luck in West Columbia.  What are the details on the one you are thinking of selling?  

Post: Refinance after BRRR method?

Jesse WatersPosted
  • Investor
  • Aiken, SC
  • Posts 398
  • Votes 120

Lee, Congrats on getting started.  Finance is one of the taller mountains that always has to be climbed.  If you can avoid hard money on the first one I would say great.  Personally, I would buy a property that you can afford to hold based on your income should things not go your way at first.  

That being said, here's my two cents worth.  Unless you are using a specialty lender most, B2R, lima one etc, and just using a normal bank then you will be limited on how many properties you can have financed at once, usually around 10.  Once you cross 4 properties financed the rules change some, I think I had to go from 25% down to 30% when I crossed that point.  However, I prefer the use traditional residential mortgage lenders because the term's can't be beat.  Like you I did have the questions about what if I want 200 properties one day?  I would say get the first one first and cross that bridge when you get there.  When you get to that point you can talk with your local banks about doing blanket loans to roll multiple properties under one loan, paying off a property or two to free up credit etc.  

So, if you don't want to even mess with a residential lender and want to do a BRRR look at someone like Lima One, I'm not advertising for them, just familiar with some of their products. They have loans for fix-n-flip & fix-n-rent. Just be aware that the terms are not nearly as attractive as a conventional conforming loan. One option might be to talk to a local lender and see what their seasoning requirements are and look to get a fix-n-flip loan re-financed to a conventional mortgage after your rehab's are done. Just make sure you know the seasoning requirements so that you don't get into a situation where you can't re-fi and your hard money loan is coming due.

Hope that helps.

Post: SC Network

Jesse WatersPosted
  • Investor
  • Aiken, SC
  • Posts 398
  • Votes 120

@Jesse Stephenson I'm always looking for things in the Lexington W. Cola area, do you have any owners that are looking to unload any properties?

@Jayson Hinkson Are you active doing anything in Aiken/N. Augusta?  

Post: are 4-6% property taxes suppose to be normal??

Jesse WatersPosted
  • Investor
  • Aiken, SC
  • Posts 398
  • Votes 120

@Jacob Song Not that taxes are really high compared to other places its just something to be aware of.  Since I live in SC and like having my properties near by I am careful about making sure I purchase on the good side of city/county lines.  So long as you are aware of what the taxes are before a purchase, plug them into the numbers and see if it works.

I work with some guys from Texas who pay significantly more for a similarly valued house as I pay on my residence, 4-5 times more in fact. I also have a property in VA and there is no difference in tax rate for owner occupied vs rental.

Post: are 4-6% property taxes suppose to be normal??

Jesse WatersPosted
  • Investor
  • Aiken, SC
  • Posts 398
  • Votes 120

Yes, taxes in SC seem high, especially when compared to other place. The big kicker that I have run into in SC, is not only is the percentage higher the way in which the actual tax is calculated is different for a rental/2nd home vs primary residence. Generally speaking, in my county the tax on rental's is about 3-4 times higher than if it was an owner occupied property. For instance, I have a SFR in Aiken that was taxed at $350/yr before I purchased it from an owner-occupant, my annual property tax is now about $1300 and the house is worth $100k. My house in the same county is worth about $290k with $1100 in annual property taxes.

I have passed on a number of properties because of the tax implication after converting them to rental properties, particularly in Columbia, SC where dealing with City & county taxes both at the non-homestead higher tax rate simply murders cash flow.

I spoke with B2R about a deal we were trying to put together, unfortunately, we couldn't come to terms on their rates and lending level's that we needed.  I was basically trying to leverage my portfolio to purchase more properties, I had issue with going from 30yr fixed rates in the low 4's to what ever they were offering.  Even with the addition of door's I would loose cash flow.  So, I would call it a neutral experience.  Perhaps I'll talk with them again in the future.

Has anyone had any dealing's with Lima one capital?