All Forum Posts by: Kayla Elliott

I manage my parents rental portfolio which consists of 1 mobile home park (20 units), and about 15 other houses. A lot of them are in poor shape and I am slowly trying to fix them up one by one. However, I don't have time to do the PM side anymore. I reached out to a friend who has a PM company, but they require all contractors be insured. The problem, is that we have a full time maintenance guy that has worked for us for 25+ years and I can't let him go.  I tried to get a policy where we insured him, but since we OWN the properties and the MAINTENANCE company. So because of the conflict, I can't insure the maintenance company. Which causes me to not be able to hire a PM, because they all want him insured. Even though he doesn't do anything that requires a license. 

So would it be smarted to hire more of an "assistant" to manage everything and be a little more in control of the process and procedures? I just don't have time for maintenance calls, filling vacancies, wiring leases, etc. 

What would you do? 

 I considered hard money, but I'm not flipping it so I won't have the funds to pay off the hard money unless I cash out refi. She is willing to do whatever necessary to help me get the deal done. I am just unsure of best execution. 

I have flexibility with my mom. I just don't know how to leverage it. She is wanting to help me get this done and will pretty much do whatever is most favorable to me. She just doesn't have the liquidity to help me. It's all tied up in real estate. So I have her willingness as leverage. Just trying to figure out how to best apply it. 

I can have an agreement where I make payments to my mom starting at a further date and just not put a lien on the house. Then whatever lender can take 1st position. That was my thought. 

I was going to pay the HELOC off by putting a Tennant in the house once rehab is done and using the profits from that to pay off the HELOC. Or I could cash out REFI and pay my mom off and probably a portion of the HELOC.

I am really not wanting to flip but to hold it. It's also my childhood home. Not that I should consider that when investing, but I am going to anyways. I still think it's a good investment based off the numbers above regardless. 

So it sounds like maybe a HELOC would be the best route, all things above considered?

Your help and advice/opinions is much appreciated. 

Thanks for your feedback and advice Patrick & Greg! 

I see that you recommend NOT having my mom deed the house over to me in order to borrow against it. I was going to do that in an attempt to get creative with my financing options so that there are no liens on it and I could borrow against it as an option. However, I don't think I will be able to borrow against it due to the fact that I have already gutted it. 

She is not in a position to lend a personal loan to me. 

My concern is doing the cash out refi on my other rental and causing a new and much higher payment on it that I can't just pay off like a loan. (May also cut significantly into the current cash flow on it)

I know you mentioned not doing a HELOC on my primary, but wouldn't it be advantageous to have the ability to pay off the line of credit instead of be stuck in a payment that is much higher?

BTW, I am not disputing you, just playing devil's advocate and wanting someone to challenge my thinking. 

GSE Reno Loan as in like a FHA203(k) or Fannie Mae Homestyle Renovation? Something like that?

The situation is a little lengthy, but hear me out..

I am purchasing my childhood home from my mother (my deceased father's rental prop) seller finance. Because she is my mom, I can have her deed the house to me so I can borrow the equity against it or put it up for collateral. Once I have fixed it up and rented it out, I can make seller finance payments to her. So I have that to my advantage. 

Here is where things are tricky. I have called my local credit unions and I can't borrow against the house because It has already been gutted and is deemed uninhabitable. My known options are hard money or private lending and then maybe doing a cash out refi, but rates would be high on both ends and will really cut into my cash flow. 

I have another rental property with a good amount of equity. In addition, I have my home that I recently purchased with a tad of equity for maybe a Heloc. 

Is there another option that I am not thinking of or one of the options listed above that you think would be best?

Here are the figures. 

Purchase price $95-$100K

Reno - $100K

ARV of $250,000 - $270,000

ARV Rent $2200

  You were able to do that on an uninhabitable property? I am in the same situation as situation as the original poster, Angel. However, they won't lend since the property is already demoed and uninhabitable. Hard money rates are really high right now, plus the rates once I cash out refi are high making it seem like the only option for me, but with the rates on both ends, just doesn't seem to justify. What is the specific product you used, if you don't mind me asking?

 @Tom S. 

You were able to do that on an uninhabitable property? I am in the same situation as situation as the original poster, Angel. However, they won't lend since the property is already demoed and uninhabitable. Hard money rates are really high right now, plus the rates once I cash out refi are high making it seem like the only option for me, but with the rates on both ends, just doesn't seem to justify. What is the specific product you used, if you don't mind me asking?

Happy New Year BP! I am purchasing a house from my mother (my dad recently passed and she inherited his rentals) who is selling it to me seller-finance. However, I am rehabbing it so I am looking for funds to finance the rehab (Maybe $85K). I was thinking a line of credit (unless suggested otherwise). Does anyone have a good recommendations on who to go to for a line of credit? I have checked online at a few, but can't pull the trigger on who to go to yet or if that is the route I should even be going.