All Forum Posts by: Josh Vernon

You may also want to consider the lifestyle impacts of single family vs. a duplex.  With $30k as a down payment, where would you be purchasing a duplex? Far from work, and friends, potentially a worse commute?  Does the thought of being a landlord in the same building as a tenant sound like something you want to deal with  on a day to day basis?

Google has many links to websites that quote today's mortgage rate.  However, with the quoted rate often being an average, what are your favorite resources to delve deeper into the components of the average?  If the current average 30 year fixed is 3.8% there must be some rates that are lower, and some that are higher.  There also must be a yield curve of mortgage specific rates that range from 15 year to 30 year but I can't find much information on it.

I know that the 30 year treasury can be used as a proxy but I'd like to find something more precise.  What are your favorite websites and resources for mortgage information?

Not sure how to specifical do this in QuickBooks but you would records each mortgage as a liability on your balance sheet. Monthly payments are split between your balance sheet and p&l.

Principal repayment is a reduction to balance sheet liability.  Property, tax, insurance are expenses to the p&l.  In total they should add up to your monthly payment amount so you can reconcile your cash balance to your bank statement at the end of the month.

Does anyone know what LTV you need to do a cash out refinance on an owner occupied home? Trying to determine the maximum I could take out even if I have to pay PMI.

As an alternative, do helocs allow higher LTV?

Thinking of taking cash out of primary residence to purchase a second property.

Hello,

I am planning on purchasing my first out of state turnkey in the near future and utilize a property management firm and realized that I have quite a few questions regarding best practices.  

Does the tenant write their monthly rent checks to the property manager, or do they write them to me?

What method do property managers typically bill you?  Is it a monthly invoice, or do they deduct from deposits that they collected?

Assuming that I will be unable to finance the purchase with an LLC, is there a benefit to having the checks deposited into a bank account in the name of an LLC? (I plan to keep all deposits, and operating funds separate from my personal accounts and in their own respective accounts.)

When setting up new bank accounts, is there a benefit to using a bank local to the market you're investing in?  Is it better to open an account local to you, or does it even make a difference?

Thanks in advance!

Thanks, those are great points. Will appraisers typically accept comps that I prepare for them or is there a process that they have to follow to determine which houses to use? One thought I had was waiting for the winter after comp data comes available for sales during the summer. Assuming it's a rapidly appreciating market.

Hello, does anybody have experience prepping a property to maximize the amount it will appraise for?  If so, what techniques did you use?

This would be done in the case of doing a cash out re-financing, or increasing the appraised value to get rid of PMI early.

To me it boils down to bitcoin being a currency.  I wouldn't consider any currency an investment since there is no value created.  You only make money by trading, buy low sell high.

Hello,

I am evaluating turnkey vs. non-turnkey as an out of state investor. As I build out my model for ROI, do turnkey properties typically allow you to set aside a lower percentage CapEx / repair expense each month?

It looks like there is a premium that you pay for the convenience of turnkey, and I'm wondering if that premium is offset somewhere else over time.

Thanks,

Josh

Hello,

I currently live in the Portland Oregon area, and am planning to begin investing in out of state real estate in 2018.  Knowing that I want to be able to scale the business beyond 4 mortgages, is there anything that you would recommend doing at the start, to structure the business in a way that will make it easier to obtain future financing?

Some of the advice that I have heard is to keep the properties in the same geographic area to make it easier to obtain portfolio financing.  I am open to considering a lot of different regions, but are some better than others for obtaining financing?  For example, if Memphis has a lot of turn key activity, is there also a banking / financing scene in that same geographic area that caters to the industry?

Thanks,

Josh