All Forum Posts by: Jon A.

I know that mine was purchased a "legal non-conforming duplex". It is an older home but had been used as a duplex for a number of years and was very easy to show that it had. Everything was separated except for the water. I just called the city and asked before I purchased.

Their renters insurance should pay for a hotel. 

You don't need a contractor for those repairs in the state of North Carolina. I think what you need is a qualified handyman with less overhead and quicker turnaround. GC's in this area are very busy and have been for years. 

I would consider McClung roofing also. DLV, McClung, and Balken are the top 3 in the area in my opinion. 

If you don't have a plan or way to pay the HELOC back I would not do it. You will probably end up refinancing the new purchases anyway to pay the HELOC back at some point. So you may as well just do it now. You also have to factor in that your HELOC being maxed out will affect your credit and DTI. Buying another home with a maxed out line of credit may prove to be an issue. Maybe a lender will chime in on that point. HELOCS are also tied to a variable rate that you have no control over. I would consider a cash out refinance to get those funds. Then, that money is yours. It will reset the amortization of your current loan but it all depends on what your goals are and how quickly you can achieve them.

This would mean that you are acting as the bank for your buyers/tenants. I would require a larger down payment than the bank would require as you are not in the business of being the lender. You are also taking a large risk that the tenant will perform according to the contract. If they don't perform, then you have to foreclose on them which could be a real struggle trying to get an unhappy homeowner out of a house. If you think a tenant is difficult to remove I cannot imagine what it would be like to remove someone who thinks they own the home and has repainted and remodeled, gotten a few pets, etc. 

I would tread very lightly and consider your other options. If you can FSBO to them, you can FSBO to anyone. But why would you? What do you stand to gain by doing that? You would do better on the tax side of things and you would have a refundable deposit. I think it is a very slippery slope.

@Sean O'Keefe

Thanks for the info. That makes perfect sense.

I have recently separated from my marriage partner and moved into a duplex that I purchased before marriage. This has all happened within the last 30 days. We have a HELOC that we qualified for together back in 2020 that I pulled the money out of and put into a saving account for fear of them cutting the line of credit. I have the money and can pay it back but then I wouldn't have any cash reserved. We would both like her off of the HELOC so I am considering just paying it back and refinancing the property to have some reserves moving forward. I will obviously be losing some income as I am now living in half of the duplex.

The state of NC requires that we be separated for one year before a divorce can be final. Therefore, we will still be married for the tax year of 2024.

Going forward this year I am not sure if we should file our taxes "married but jointly" or married but separately" for the tax year of 2023. I am concerned that if we file jointly I will not be able to refinance in my own name, but I am also concerned about the tax burden if we file "married but separately". Any insight is greatly appreciated. Thanks in advance. 

Thank you for all the responses and clarification. 

It seems I remember reading on here somewhere that a property owner is not allowed to tell an applicant that a neighborhood is "good" or "bad" as the answer is relative and could be construed as misleading. We have a property for rent and get a lot of applicants from out of town asking about the neighborhood and I am honestly not sure how to answer the question. How do other people managing their properties answer this question ?

Any info is greatly appreciated. Thanks in advance.