All Forum Posts by: Kevin McDonald

Hello,

I am looking to refinance my personal house now that rates are so low. I see tons of advertisements popping up on my social medial accounts (better.com, rocket mortgage, etc....) .  I have called a few but I want to make sure I am getting the best deal I can.  Before I start to call more places does anybody have any recommendations on the best deal (lowest rate with the least amount of cost to refinance)?  

thanks for info I will look into it 

Kevin 

My strategy has been buy foreclosed properties that need work pay cash for them (using HELOC on personal home). Put in sweat equity to fix them up and I rent/maintain them myself. In 6 months I get a cash out 30 year mortgage for 80% appraised value. So far the houses have appraised well where I was able to get all my money back and pay off my HELOC. Now I have an investment property where I have none of my own money involved in. Even if I can do this and put under 10% of personal money into it at the end it still beats putting down 20% on investment property. I have done this 3 times so far.

Doing this method I am basically paying closing cost twice (once on original cash purchase, and again in 6 months when I refi).  Is there anyway to delay or not have to pay all the closing costs twice? (recording fees, etc....)  

Thanks

It is SFH.

Yes on my previous cash out loans I waited 6 months and they used the appraised value, I think I was allowed 80% of appraised value.  Doing the cash out loans was nice because at the end I literally got paid back 100% of what I have into the property (after sweat equity and making house appraise for higher value) so I was not using any of my own money.  The only draw back is I was paying closing cost twice (once on original loan and again in 6 months doing cash out). 

I was thinking this time if I could get away with putting 10% down, the house is in good shape so I can get standard loan I would put 10k down and only pay one set of closing costs.  

Thanks   

I have 3 investment properties now. My current properties I bought cash (using my HELOC on personal residence) they needed tons of work once I did all the work (sweat equity) and got them rented I would get a cash out 30 year loan to pay myself back. I could do this because when I was done the houses would appraise for a lot more then the loan amount I was asking for (I think my loans were for about 80% of house values).

I am looking at properties now that don't need a ton of work and I was looking at getting a standard mortgage from the start (instead of paying closing costs twice).  If I purchase a house that appraises for 135K and I pay 100k do I still have to put 20k down to get a loan, or could I get away with less money down?

Thanks   

How many of you include ceiling fans in your rentals?  I have a rental with ceiling fans in every room, I am afraid if they start making noise, or don't produce enough air for tenants liking I will get complaints and they will ask me to replace them.  I was thinking of writing in my lease something to the affect of

 "ceiling fans were left here from previous renter, landlord will not replace/maintain ceiling fans.  If you do not like ceiling fan landlord will replace with light fixture.  Or landlord will install ceiling fan tenant purchases, and when tenant leaves the ceiling fan stays in the residence.  "    

I hate to be pitty but I have had a ton of ceiling fans that make noise, don't produce enough air, etc.....  I don't want to spend hours installing multiple fans to make a tenant happy.

Thanks 

What method do you use for advertisement rentals? I currently use Zillow and craigslist. I have had best luck with Zillow but was thinking about also trying a flat rate MLS.

I was not sure what to do with commission, I know typically in my area if an agent lists the property, shows it does all the contracts/background checks he gets one months rent as a commission. 

For commission I was thinking a flat rate like $500 or something.  I do my own back ground/credit checks, my own leases, etc.... So all the agent would do is refer the person.  Not sure how I would list that. 

I know a lot of the flat rate web sites say they will refer any calls right to you and not a realtor but do they really do that or will they have a friend agent contact you to get a commission, I am not sure.

I am just trying to maximize my rental advertisement and was curious what others use.     

thanks for the responses my next lease will definitely address this.  

I just remodeled one of my rentals (tore down to the studs everything new).  My new tenant has moved in and has  been in the house for about 6 months.  I have noticed the few times I have been called to the house to take care of things they have the walls covered with crap (pictures, little shelves with items on them, etc....).  The house was freshly painted (wall all painted in different colors, etc....).  I feel that when they leave I will have no choice but to repaint the entire house.    How can I write my lease to protect me from this?  They have been great tenants and if they end up being at the property for 3/4 years I really don't mind repainting the house.  I just feel if they leave in a year I will have to repaint, can I deduct this from security deposit?  

suggestions? 

Thanks  

I am new to land lording, I have 3 rental properties.  My one property is just about up, my tenants have been great they pay rent a week early, are an older couple no kids, I have inspected the property multiple time and it is always spotless, etc.... 

I am just curious when the lease is up how do you handle follow on leases or if they ask for a month to month would you allow this?