All Forum Posts by: Justin C Huggins

I have had 1 investment property in Cahokia for about 2 years. Actually tenant wise has not been bad, but property management has been terrible. I have about 4 months rent that I have never paid for, so do not use CBR!!! I have recently switched property managers and have been far more successful. After learning more, I would probably side with everyone else though. Prices are super desirable, but not sure the risk would be worth the reward long term. Via my property manager, Belleville is more recommended, especially on the east side of town.

I am also fighting with the small amount I want to pull out as well. I was on the phone and email banks and credit unions all day yesterday. Either they don't want to work with a LLC or a minimum amount is 40-50K they will loan. I am completely open to a HELOC as well, are they easier to work with in an LLC? Or do I need to just bite the bullet and deed it over to myself? I put this property in a LLC since it was out of state and I am using a property management company. Just made me feel better since I had far less control vs my other property right down the road.

I have a rental property in the St Louis area, Illinois side that is completely paid off and I want to refinance cash out (25K). This home is owned in an LLC, so I have contacted a couple local banks. The ones I have spoke to so far have all wanted me to deed the home out of the LLC before they can refinance. Does anyone have any lenders they can recommend that will refinance in the LLC? I will deed it to myself if no other way, but would prefer to keep in LLC.

I currently have a home listed for sale and have had many inquiries about purchasing with owner financing.  I currently owe 89,000 on the home.  The home appraised for 130,000 recently and I was wondering about how to structure something like this?  I would not want to take less than a 10% down payment and was thinking of an interest rate of 6.5%?  Then I am assuming I would be working with a closing company to coordinate all terms?  Can I require escrow to ensure the taxes and insurance are paid?  How is something like this structured, would the payments made by the buyer going directly to my note or could it be setup in this fashion?  Just curious how the whole process would work.

I wasn't planning on creating a lease term for the renters, they are from our church and really just need a place to rent for a couple months.  I will have them sign a lease agreement, just no time basis and they are completely aware of me trying to sell.  You do have a point, probably be harder to sell with renters though.  I am just afraid no one will purchase right now anyways due to road construction.  I do have another house in the process right now, and I do have reserves for the house were living in.  Basically just wondering if you can get permission to rent from lender, since it has not been a year for owner occupancy?  Might not rent either way, just really wanted to know if it was even an option.

I bought a property last summer and purchased as an investment property.  After fixing it up, we really liked it and decided to make this home our primary residence.  We refinanced in January with a conventional loan as primary residence.  We have been living there for roughly a year and 6 months since refinance.  Recently road construction has started near the home and we are wanting to move due to our 3 year old and another coming later this year.  Can we rent this home while we are trying to sell it?  Do I need some kind of special permission from the lender?  It will be really tough to pay two mortgages and as road work is going on, I would be surprised if it sells quickly.

@Craig Murray It is now underway, but has been a nonstop headache. The contractor will complete certain steps, has to schedule the HUD inspector then gets paid a week later. I have known the contractor for along time and he mentioned that it is taking him much longer and more time just having to deal with all the red tape. The 203K limited, which is 30K or less, just gives 50% upfront to the contractor and then 50% upon completion, which is much more than simple than the full 203K. If you do decide to go through with the full 203K loan or limited, the advise I wish I was given was find a contractor that is already familiar with the 203K and has done one before. A big part of the issues I am facing are the contractor and myself are not familiar with all the procedures involved and somewhat unclear at times and the paperwork is endless. The interest rate isn't that great, so probably have to refinance anyways. If at all possible, I would just shoot to buy the property and then get a separate loan for renovation. You will probably have to refinance either way, as 203K are roughly 1% higher than ordinary loan.

I am very new as well, but have went the turnkey route.  I bought mine in Cahokia Illinois and it is a C class property with very low involvement, and pretty good cash flow.  Low crime area but will be very little appreciation on the property and high taxes.  Probably would not purchase in this location again, but would go the turnkey route again for the passiveness. 

I have been looking at Memphis turnkey properties for a potential next property, as they do offer financing as well (%35), so you will not be paying higher than appraisal . They have properties in Little Rock and Memphis mainly.  From the looks of some of there properties, they have a mix of B and C class properties.  I have seen many good reviews from them on BP.  

It is the normal, around 50K renovation.  Well the contractor is refusing to do anymore paperwork unless there is wording to allow upfront funds.  Which I have always done the 50% upfront and 50% once finished for most projects.  This is my first 203K and probably my last. 

I recently closed on a 203K loan and after all the paper work finally thought I was done once I closed.  About a week after closing I heard from my contractor and he had not received any funds to start the project.  My loan officer said he should have received the first disbursement payment once he signed his portion of the closing docs.  I specifically asked the loan officer during the bid process how the loan worked and if the contractor could receive upfront costs for materials.  He specifically told me that the renovation team could provide upfront disbursement.  Well now after closing the renovation team is saying they cannot provide any upfront costs.  Also, my contractor will not start any work without at least some kind of funds upfront.  On top of this, the contractor has not signed all of his portion of the 203k packet, only partially and I have already closed the loan.  Basically this has been a huge mess and feel like I been lied too.  Is there anyway I can get out of this, such as them just applying the renovation portion of the loan to the principle and refinancing?  Any suggestions, as of right now this is going nowhere.