All Forum Posts by: Joshua Fletcher

I'm definitely looking into a heloc as well. I met with 1 local credit union, America First, who offers helocs on investment properties but they were not as knowledgeable or able to answer my questions. I need to look for more banks who offer helocs for investment properties. 

Hey Michael, I have one property just below and the other just above 3%. I knew at the time it was good but I didn't fully appreciate those interest rates until now. I need to look more into out of state STR. a friend of mine in SLC who's a real estate agent runs a STR in Virginia and claims to clear over 2k a month after expenses and paid around 400k. That property was purchased just 6 months ago.

Hey I've been self managing 2 LTR properties in Weber County each cash flowing 900/month. Looking to transition to STR Airbnb relatively close to turn key for higher cash flow and less hands on through property management. Have about 200k available assuming I sold 1 rental which I would like to. Prefer property in Utah but open to other locations. Need an experienced real estate agent who specializes in STR and can offer insight into this market as it is new to me. Any recommendations? Thanks

Update: hey thanks for all of your advice. I'm glad I didn't do a cash out refinance. We are going to rent out the initial house, it should cash flow around $700 and are closing on another one this month we will be moving into with a basement to rent out that covers half the mortgage. We put 10% down. And the PMI is $77. The POS Redfin estimator calculated the PMI TO be over $250. The advice i received was right on point. I also have a Heloc for backup Thanks. I'm sure to have more questions in the near future.

Hey,  I've seen posts in this Utah section from experienced members recommending cutting in a basement backdoor and renting the basement as a MIL. We just got our offer accepted on a house in Centerville with a MIL and I just got off the phone with zoning who told me they are "prohibited, unapproved, but enforced only by complaint" I need to know from people who have this setup in non legal fashion  what complications have arisen, how to prevent complaints and how to find renters if it is not technically legal. Please respond quickly It certainly affects my decision to buy, thanks. 

Hey Connor, thanks for your input. I didn't consider how the raising values of homes right now would help to reduce my pmi quicker by getting my mortgage below 80%. I'm definitely going to look into this more. But it seems like the smoother way to do it, and with less paperwork involved. Thanks for replying

Greg, thanks for offering your advice and personal experience, I've read your posts multiple times and they are very helpful. I bought the book on rental property investing from bigger pockets, and will definitely take your advice on using Homie. I have a couple more questions:

1- thanks for the referral for Carter Campbell at ALV mortgage. In your situation how long after you refinanced were you able to get a mortgage on a second home?

2- how were you able to walk through the house in preforclosure and how did you find the house? I've looked on auction.com but the properties don't offer walkthroughs and can only be bought in cash which i don't have on hand. We have about 60k liquid including our emergency fund. We also are OK with a major fixer upper. 

thanks for your insight. 

Kevin thanks for your reply.  I wanted to cash out refinance my initial property before buying another house rather than after for a better rate until I realized I couldn't move for a year after the refinance. 

home values this year in Weber County increased 17% according to BP. I think prices will continue to climb along the Wasatch front, but probably not that high of a rate. As I see it,  waiting another year could mean a 330,000 property with another 17% increase could cost over 380,000. Refinancing before leaving the property vs after results in around a 1% change in the interest rate of the loan as I understand it.  Meaning cash flow before vs after would be 400 vs 200 a month using a property calculator. A difference of 2400 a year. 

one year waiting could cost 50,000 in the 2nd house purchase if refinancing before renting out.  Renting out after is a difference of 2400 a year. That's over 20 years of rent to make up for.  That's how I see the numbers, and the market is variable of course. I could be looking at it wrong though, I am no expert. Any insight into my perspective would be appreciated. 

Hey, I have been reading local posts and am really impressed with the wisdom imparted for free to strangers. Here's my situation i would love input please. 

my family live in West Bountiful in a twin home. We bought it for 235k, have 190k left on mortgage. My real estate agent estimated worth to be 280-300k based on comps with electrical, bathroom,  flooring renovations.

mortgage is 1100 no HOA. I think I could rent for 1500-1600/month based on comps. We have 40k in savings and 20k emergency fund as well. No other debt and combined we make 105k Annually

I want to buy another small home (1500 square feet, 3 bedroom) in the area with cosmetic fix up for 330,000. Put 10% down, rent out my current home, appraise it and cash out refinance my as soon as I can to help get 20% down on the 2nd property so I'm not paying any PMI. After refi I'm thinking the first home should cashflow around 200 monthly i plan to self manage. My family is local with some construction background.

Questions:

1-how long until I can refinance investment property once I get tenants, seasoned?

2- is Cash flow on 1st property after refi too low? 

3- 1st investment property any suggestions for legitimate local training available? I want to know local ins and outs and create a comprehensive checklist

4-how feasible does this sound?

5- cash out refi on investment property can you pull out 75 or 80% of the appraised value? I've read both. 

thank you for reading and replying.