All Forum Posts by: John Hernandez

That sounds like a reasonable search to me. Just a quick glance on Zillow in the SW ATL area shows a lot of prospects. The problem you may have is much like I do when looking at Houston or Chattanooga is sellers are still overpricing the properties for a turnkey option. They want premium money in an inventory glut market with high loan costs. It isn’t going to sink in until they are carrying two mortgages and get motivated to sell. If you find a rehab option at a good price, make sure you get help with the estimates of construction/rehab as this can make or break your deal. 

I had the same problem with my self employment income with any Freddie/Fannie loan. I suppose if he is able to secure a loan from an unconventional lender he might be able to. I wonder if he finds a place that can show to be cash flow positive, gets a DSCR loan with an adult assigned as the rentor, he might be able to get the loan. Then after seasoning of 18 months (to equal 2 years of self employment income), he might be able to refinance the whole thing, pay off the DSCR loan and have a conventional mortgage. Just an idea but I don't know if it would work.

I used a rip off company that rhymes with Zegal Loom and paid over $600 for my first LLC. After that, I learned that you can go directly to the Secretary of State website, fill out the info, and pay only $300 for an LLC in TN with an immediate EIN generation at the IRS website which is how I did my second LLC. Lessons learned. The online companies often cost more but as far as convenience for a first time user, it teaches you what you need. I now use the registered agent in TN for both my LLCs (different industries) and even they try to upsell you. You can file your own franchise tax, make an account, fill out the online form and pay the fee. At the end of the day, it is your money, spend it how you want.

Same. That is who I use

Quote from @Olia Fogel:

I would recommend using a combination of an LLC and a land trust. First you'll create an anonymous land trust and place the property into the land trust. Then you'll make your LLC a beneficiary of the land trust. Not only will a land trust help you avoid triggering the due on sale, but it also helps with transfer taxes and keeping your real estate holdings private.

I wanted to follow up on your recommendations with a couple questions. A land trust (aka Illinois land trust) can make secondary market loans nearly impossible to obtain. Do you recommend that an individual completely finance and remove equity as needed before transferring to a land trust? Does having a property in a land trust require moving out of the trust to access any future equity? Does having your property in a land trust help to improve your DTI and make future property acquisitions easier or more complicated?

Sounds like you have done all that a landlord can do. You addressed things with common sense and a hired a professional. Unless the tenant is contributing to an infestation or there is a nest nearby, it may take time to clear up. The other tenant may be hinting at an early exit but why anticipate something that hasn’t happened yet? As of now, you have done your due diligence and her only option is a nonrenewal of the lease. One other consideration to explore is if you were the tenant, what would you expect the landlord to do?

@John Hernandez *you

@Conner Olsen

Just a question so I can understand: how would define STR vs MTR vs LTR?

I have my first property in a personal conventional loan and have another property. When trying to pull out home equity via HELOC, the DTI was too high despite everything else looking good. I was thinking of how to move the mortgage out from under my credit. Would a Quit Claim Transfer take care of it followed by a refinance? Wouls it complicate the HELOC if I have it in my LLC (for property)? Is there a better way to reduce DTI so I can get my HELOC for purchasing additional property? How do people get past the 10 mortgage limit of Fannie Mae & Freddy Mac?

I have a good experience with Lease Runner. You can have background, criminal checks and all done by the tenant. The credit run is a soft check so the tenant doesn’t get a hard ding which is more likely for them to apply. Also, it gives a recommendation based on standard preset criteria or you can raise the criteria. They can pay the rent via the online portal, it tracks the renewal term and you can use a state specific rental agreement they have (it is free) or use your own. Everything can be signed electronically as well. Good value and there is no minimum property required. I used it for just one property I managed from out of state.