All Forum Posts by: Kelly Moniz

Whats your estimated cost on repairs? That will probably dictate a lot when it comes to making your decision.

I have a renter that has one but it's a sweet dog so I do not mind even though my insurance says no. But honestly from here on out I am going with no pets period. I find that every time I rent to people with pets the turn around renovation after they leave is far more work. I'd much rather spend an extra week or two finding renters with no animals. If they want a pet I tell them to get a fish tank haha. 

Well will your debt to income ratio allow for you to pull 5 mortgages? If so then sure you can go that route. I know that would not work for me so I just bought cash only deals that I more than doubled the equity in so I could do cash outs. You will get the best bang for the buck buying cash only deals. If you can do most of the work that's a huge bonus. I do all of the work with my partner. We hire nothing out aside from some HVAC. It's much better to do the work instead of paying your hard earned already taxed dollars on labor. That's all assuming you are buying local. 

I just leave a whole years supply worth with my renters. I don't normally have issues. I also get my units serviced once a year or so and they clean the coils. My guy let's me know if the renters are being bad about filter changes. If so I let them know. 

I am lucky to have a used appliance shop close by that sells appliances roughly 30% of what new costs. They come with 3 month warranties but I usually get years out of them. I also learned how to trouble shoot and repair simple issues to increase the longevity of my appliances. A lot of times a few bucks will get a lot more life out of them. See if there is a second hand appliance seller near you. I've also used Craigslist in the past but the used appliance store is a one stop shop so much more efficient on time. 

You are pretty much vetting this person just as much as a bank does for someone applying for a mortgage. I am not that strict with my rentals. I manage them, so I see the people face to face. I do background checks and get employment info. I have rented to self employed people with no issues. 

First piece of the puzzle for you is getting ahold of some working capital. Do you have a decent amount of equity in the Cali rental? Is the house your are living in that you are about to buy owner financed or something? I don't understand how you are living in a house that isn't already bought.  

A refinance (cash out) for me usually takes 2 months. Then there are closing fees, etc. You will probably only get 80% of it's appraised value. I'd reduce the price like mentioned before. Or possibly add something else to the house to make it more appealing if that is an option. I would only refinance if you plan on holding it as a rental. And I would only go that route if it can produce good cash flow every month after all bills are paid for.

a heloc is probably the best way to access fast cash if you can get one for enough to make deals. Obviously do a good market analysis to make sure it's worth pulling the loan. If things don't look favorable for a good return in the market with your strategy, don't do it. If you don't have enough equity to be able to have a proper amount of working capital then don't do it. I used a heloc to buy 4 homes at 25% of their tax value. I turned them all over to rental since the market was down (2010) and I then got a cash out on the last home I renovated (5% investors cash out). The bank loaned me 3 times more money than I had in the property and closed in 60 days. I was able to get the loan while tenants lived in there. Over 30% of the rent is left every month after the mortgage, insurance, and taxes are paid. I then took that loan money and bought more and did the same cash out when I ran out of money to buy more. I think that heloc and cash outs are a great way to build wealth on a down turn economy when buy and hold conditions are more appealing. It works well for financing flips too. There are always good deals out there even in strong economies. Having the capital to take on a good opportunity is how everyone starts. Just do your research to make sure you aren't sitting on a loan for no reason. 

Sounds like a bad situation. I would definitely go knock on the door and feel it out. Check the place out for any damages. If it was in ok shape I'd tell him he would be paying month to month and I would allow him enough time to relocate. That's if you get a good feeling about the situation. I wouldn't worry about the lease you have. That lady is in jail. That should be grounds enough for the lease to be terminated. Especially if the crime of child abuse was being committed on your property. I don't see how the guy wouldn't be able to be removed by the sheriffs if his technically trespassing on your property.