All Forum Posts by: John Woodington

I’m wondering if anyone out there knows of a lender in the western area of Wyoming (or anywhere else for that matter) that writes mortgages on fractional interests in real estate. My wife and I own a fractional interest in a condo in Jackson Hole and we are looking to purchase another fraction of that same property. The bank of Jackson Hole out there used to lend on these fractional interest, but since they got bought out a year ago, they don’t write those mortgages anymore, and so I’m looking for another bank that’s willing to do it. The fractions are all fee simple deeded interests recorded with the county so they act just like whole ownership of a property. Any referrals would be greatly appreciated! 

Curious to hear everyone's thoughts on if this has a chance of passing:

Biden’s proposed tax hikes could be a ‘double-edged sword’ for real estate — what homeowners and investors need to know - MarketWatch

I'd wager that if the 1031 goes away completely (not likely) that cash-out refi's become the new defacto method of freeing up invested capital.

@Sean Blomquist I appreciate the offer!  I checked my notes, and Spire will do 20% down on an investment property, but they will give me a better interest rate if I put down 25%.  Last quote I have from my contact there was 3.125% @ 25% down, 4.625 @ 20% down.

@Sean Blomquist My local credit union (Spire, as well as Maple Bank in Champlin) will do 20% down on an investment property. That PITI number includes $300/month in association fees, yes.

@Wayne Brooks Over the long haul, yes, there are other expenses, but in general they are very low. I don't have to cover the roof or siding or any of the exterior of the property, because the HOA cover all that. I got a new roof and siding for my deductible ($250) last year, and that was my only non-PITI expense. Again, all the cashflow goes into reserves, which are at ~$14K right now.

I've been on BP for half a decade now, and I feel like this is the kind of deal that gets labeled as A Bad Deal, and I can't figure out why, so I'd love your input:

My investing parameters: $350/month cashflow per door, 3 bed 2 bath townhomes, B properties in B neighborhoods, built after 2003, with as little of my time invested as possible.

My current rental property is a 2 bed 2 bath townhome in the north suburbs of Minneapolis. It rents for $1795/month, and my PITI each month is $1339. All cashflow goes into a reserve account that I don't use for anything other than expenses for this property. My total for repairs/capex last year was $250.

I can buy other MLS-listed 3/2 townhouses in my market for $225K - $250K. They require no rehab. Assuming I put 20% down, my monthly PITI comes in around $1400 to $1500 per month, and I can rent it for $1800 to $1900 per month. This hits all of my parameters. Yeah, CoC return comes in around 9%, and I'm fine with that. The point with these deals is to build wealth with as little of my time invested as possible.

What am I missing here? Why wouldn't I just buy these things off the MLS and take the easy route into property ownership?

@Jarrett Mel Williams I would say if you want to buy a $100k property as a straight up investment, you should have the down payment, plus closing costs, plus $10k in reserves. I’d say all in $40k in cash to get into the deal safely.

@Derek Meyer If he’s willing to do some research, I’ll say swing trading leveraged ETFs has worked wonders for me. Low time investment as well.

I'm going to be doing my first turnover on our rental property at the end of April, and I can't wrap my head around how this works so that I have no vacancy for the year.  If my current tenants move out on April 30, and the new ones move in on May 1, where do I squeeze in the time to have the cleaning crew run through, plus patch and paint any wall damage?  Do I just tell the new tenants that move in day is May 5 and prorate the first month?  That wouldn't be ideal for them, since they'd probably be moving out of some other place on April 30 as well.  Any feedback on the logistics of turnover would be appreciated.  Thanks!

My tenants let me know that their dryer is taking 2 to 3 cycles to dry a load of clothes. Clearly this is likely caused by a clogged dryer vent duct. I called out a duct cleaning company, and they said they could not clean the duct until spring as they would not access the roof vent in the winter while there is snow and ice on the roof. We are up in Minnesota here, so that makes sense. Does anyone have any recommendations for how I could get this vent Cleaned out before spring? I don’t want to renters to have to wait that long to have a functioning dryer. oddly enough the ducts were last clean this past July, so I’m surprised there’s an obstruction at all, but it is what it is.