All Forum Posts by: John Leake

Congratulations you now have your most difficult deal completed! Most people never even get started so nice work on getting your first one out of the way. Best of luck to you!

Its really hard to beat laminate flooring and fresh paint. I would plan to do the same flooring in all of them its nice to have a box or two on hand in case a few pieces get damaged somehow. Painting between tenants is pretty inevitable but it really isn't too expensive either. If the units just seem outdated but flooring and walls aren't too bad replacing light fixtures, outlet/switch covers, ceiling fans, and putting in LED lighting can make a big impact!

Hope that helps!

@Carmen Alvarado I'm also exploring this for my business this year! Here is a link to what bigger pockets has listed in case you missed it: https://www.biggerpockets.com/... I have not used any of these yet but am leaning towards rentredi. 

I think that it is used more generally as an expression you have hard money financing so you are purchasing the property in cash. Your terms with your hard money lender probably talk about the property as collateral. Also seasoning of the loan only really applies if you are refinancing with the same bank. It is usually easiest if purchase and renovations are completed with cash/ hard money because it saves on some of the closing costs. It should also be faster because you are just pulling equity out of an asset you own outright. 

I've also not heard of this but would be interested in a CPA's answer. In my mind you owe property taxes in Illinois and income tax in California. 

@Gary Libero Did you have a software you were using before that or were you doing it on your own? Currently I have a pretty robust excel file that works really well. In looking to scale beyond the 16 units I have now, I was thinking it was time to get some software that will also invoice tenants as well as allow them to pay online. Currently all my tenants just go and pay at the bank where it is deposited into my account.

I would be interested in updates about this as well. I'm debating about using them moving forward in my business so how they handle support concerns will help me decide. Sorry to sneak onto the post and not add much value but hopefully it'll be a quick fix for you!

@Tom Romanowski you would likely have to have it either reappraised or refinanced to remove the PMI but I would say that would be a good option. I also agree with @Ashley Cross if the plan is to refinance regardless I'd put as little down as possible!

@Karl B. I was trying to remember the brand Brandon, from investment joy on YouTube talks about. I believe speed queens was it he has a couple laundry matts that he he talks about on his channel!

I would want more cash in reserve than equity so option 1 sticks out to me! Depending on the difference in payment it may be worth doing even less than 10 percent down. Will the renovations you preform which will likely need to be done cash raise the value of the property enough to give you the equity to avoid PMI. The cash gives you a lot more options especially if you want to grow the business.