All Forum Posts by: Kevin Harrison

@Jeremy Ashford, thank you for taking the time to respond. I know every situation is unique but I was hoping to provide some food for thought so to speak. A refinance is not a terrible idea. If you refinance it for less than FMV you can most likely lower your mortgage payment and give yourself some more monthly income. Just check and see how much all the fee's involved are really going to cost you before you move ahead. As a last note, holding out for appreciation is akin to gambling, but I think you are right and was saying over a year ago that Augusta was undervalued.

Can you think of anything I missed?

Maybe this can help you out.

You would need to be receiving your mail there and have legally changed your address with the post office. I'm sure people get away with this but do you really want to risk it on such a big investment?

I have never had them that close. but I have had a tenant move out on a Friday and a new tenant move in on Monday. you just have to be prepared and make the most of that window. You should already know ahead of time if you are going to need to do some major work that will take longer than that.

Another thing I didn't see mentioned here is that in lower income (and sometimes higher if they don't manage their money well) units the first is usually a pay day or close to one. This will lead to more people paying their rents before they spend it on something else.

I would more than likely do a little of what every one has already said. I would explain the rates to the tenant and bring the rent up to 1K per month. The tenant is less likely to leave because they are still getting a good deal and you will be getting a little more money in your pocket every month to update the unit etc. then once you have the unit looking the way you want it I would go back to the tenant and tell them you are bringing the rates up to FMV and let them make their own choice. But at least this way you run much less of a risk of losing the tenant until you are ready for turnover.

IMO it doesn't look like what he is offering you for holding the note is any better than what a bank would offer you on a commercial loan. unless there is a reason you can't get financing why let him jack the price up almost 90K for holding the note?

@Bryan O., Well then I guess I misunderstood your post. FYI the VA loans do have an owner occupy clause, for at least one year.

I think that if you can afford to jump into the MFH market it is a great was to build income. But most people starting off don't have the money to get into the larger deals. Even if you can scrape up enough for the down payment the larger issue for most beginers is having enough funds for CapEx reserve and reno right off the bat.

Most people start with SFR and use those as a stepping stone to larger deals using the equity they have built up.

Don't do business with friends if you have opposing interests. IE you are making money from his use of your space. This will lead to lost money or lost friends, or in worst case scenario both. If you want to get top dollar your friend is definitely going to resent you for it at some point.