All Forum Posts by: Joseph Firmin

I have a slightly different view than @Andrew Postell. I don't believe rates are going up anytime soon due to the deflationary environment we live in and will continue to be in driven by the exponential force of technology. The Fed targets inflation around 2% and what have rates done since 2009 - gone 1 direction, down. The money printing continues and this will drive rates lower. The Fed has also stated already they don't plan to raise rates through at least 2023 and in my opinion, they won't for a long time because of all the money printing going on. 

All that said, the HELOC is your best option. If you can get a 1st position HELOC, and treat the HELOC as your checking account - even better. You'll pay it off in no time, especially with the additional cash flow from the rental. If you do a cash out refinance, your payment will go up more than likely.

At the end of the day, you can always refinance out of the HELOC if you want a fixed rate and get into a mortgage. The HELOC just gives you flexibility and more control of your cash.

In addition to what the other guys have mentioned on financing, you could always outsource the management of the other side of your duplex so that you don't have to deal with the tenant. 

Agree, don't overthink it. Income is income in today's gig economy. Additionally... if you wanted to get creative (as long as it is legal) - put a clause in the lease stating the influencer posts a glowing endorsement of your real estate business 1x every 3 months. :)

Ask a local property manager for a large apartment complex. They should be able to confirm (within reason) a cost/door.

Hi @Matt Giordano, you could pay off the HELOC or just continue to use the cash to reinvest, given there may be a lag in time, you might as well payoff the HELOC and continue to have the equity available... It acts like a credit card so it is still there and available, just because you pay it off doesn't make it disappear. On the payment - this really depends on if your HELOC is interest only or principal + interest, payments would range from $300-$500... just google HELOC payment calculator and I'm sure there's one out there.

Get the contact info and call them. You could use an app like DealMachine or get the address skiptraced on LeadSherpa cheaply, then go direct and negotiate.

I would give David Greene's book, Long Distance Real Estate Investing, to every one of your investor clients from OOS.There are so many gems in that book that answer your question.

Woah, lots of steps - best outlined in a book, of which there are plenty. Here are a few general steps using traditional commercial loan financing: 1) At a minimum get Rent Roll and T12 from Seller; 2) Submit an LOI to the seller and agree on terms; 3) Get attorney to draft a Purchase and Sale Agreement; 4) Seller agrees to terms in PSA; 5) Look over all property documentation PRIOR to due diligence period starting; 6) (Simultaneous with other steps) - Appraisal/Get loan commitment from lender; 7) Inspect Property...

Best way to finance deals is the way it best fits your investment strategy, goals, and desired returns.  There are many ways to finance and terms available. When you underwrite the property, this should include different financing scenarios so you can see what would be most advantageous.

If you need to increase the rent to make the numbers work, once the tenant's lease is up, issue the rent increase notice in accordance with state law, tell the tenant you need renovate the place. They should move. If they decide to stay and pay the rent, then you'll delay the rehab and not be able to get your cash back out. You can also make the deal closing contingent on the property being vacant. That way you ensure the previous owner has it empty for you.

As one of the best states for asset protection - yes. As long as you set up the entity correctly, the corporate veil will be difficult to pierce.