All Forum Posts by: Kieran Donahue

I guess I'm a bit clueless on how to get money. Can you borrow from the equity on rental property reasonably? I believe I have approximately $100k equity. Loan to value is 120/230. I didn't know if I'd be better off selling what I got and buying an entirely new property? How does one usually qualify income wise buying a $250k 2 unit duplex as investment property with $100k down payment? My dilemma is I am making $1300 rent which should be higher I think around $1500 when I could own a 2 unit duplex with approximately the same debt and cost at $250k and make 2x$1200 mo rent. I also didn't know if it is better to just live in one side of the duplex for a year to get lower FHA interest rates. I own my permanent resident outright.

How do I go from one single family rental to maybe a another duplex or another single family?  I have owned this rental property for over 10 years and I have a $230k house that was originally bought for $142k.  I owe $120k.  I've contemplated selling it and taking the equity to buy a duplex close to where I live.  It is in the Dallas area which saw a large appreciation.  

Maybe this isn't the right place to post this but I need some help getting rental property in Oklahoma City.

I guess you can look at it two ways.  I was just pointing out that in Texas waiving the deductible is completely legal.  About 80% of the roofers I’ve contacted would be committing fraud if I believed everything I read and didn’t obtain an opinion from the attorney general’s office.    The other way you can look at it is the roofer that tells you that you are committing fraud by not paying the deductible is committing fraud themselves.  In their defense even my own insurance salesman believed this falsehood.  Not trolling or trying to upset anyone.  I appreciated the tip on all the loopholes in the manufacturer warranty.  I’m probably going to opt for a certainteed certified installer.

Unfortunately waiving the deductible is perfectly legal.  Another falsehood spread by the roofing industry.  Quote - “A situation in which a person providing a good or service does not seek payment from an insured of the amount of his insurance deductible does not constitute a criminal offense under section 27.02(a) of the Business and Commerce Code.” - End Quote

Due to recent hail storms I need 3 roofs replaced.  I've called a variety of roofers and they all seem to want to scam me one way or another.  I've called a couple of them on their pricing.  Most of them act like the insurance money is theirs in the bag.  They all want your insurance estimate so they can squeeze more money out of the insurer while giving you the lowest quality/cost replacement materials.  I had one just tell me I couldn't opt for the upgraded shingles because my insurance wouldn't pay for it and he didn't get a bulk discount to buy the shingles that I want.  I have 3 checks for $7,000, $7,000 and $8,000 to replace these roofs completely.  How do I get some good quality impact resistant shingles and not have to put up with the BS?  Someone must want the work in Dallas, TX?

Boy was I wrong. This property sold for $90,000. I didn't know, but the lender (loandepot) uses Auction.com to list the property and attempt to obtain 80% of the original loan. If they do not get 80% after a year the property reverts to HUD. The timeline is totally up to the lender though. Auction.com won't tell you the reserve price, but if it has a reserve you can guarantee it is right around 80%.

Yes, the home in Texas is $1100 a month cost and taking in $1200.  The rent is under market.  I think market rent is $1400 a month, but my renter has been there for 7 years and I am reluctant to raise the rent.  I was thinking I should just do $25 a year to catch up, but I'm afraid it will make it not affordable for them because they are on a fixed income.

The mobile home I am considering buying would be brand new.  The neighborhood only allows one unit per lot.  The entire neighborhood is 1 acre lots consisting of mostly mobile homes.  Some are stick built homes, but they are rare.  There is one on my street out of 32 lots.  I believe the rent I could get is fairly accurate.  I don't think people would pay a premium to live on an acre lot, but I believe renter would enjoy the extra room.  The mobile home I am considering purchasing would be a single section 1400 sq feet which is the largest for the single section design.  I could get 3 or 4 bedrooms also.

I'm looking for some general advice.  I own two properties.  One in Texas and one in Oklahoma.  Both are 3 bedroom 2 bath homes and are fairly basic.  My goal is to have two rental properties to generate income and one home to live in.  I had a chapter 7 bankruptcy 2 years ago and brought the homes thru that.  At the time they had no equity.  The home I currently live in is a mobile home with an acre of land.  It is worth approximately $50,000 with the land.  Home alone is worth $7,000.  The other home in Texas is worth around $200,000-$225,000.  I still owe $120,000.   I was thinking about buying a $50,000 mobile home to replace the 35 year old one I am living in currently.  In 10 years or less I would like to rent it and move to a normal stick built home.  Potential rent for the mobile home would be $800-$1000 and the rent on my home in Texas is currently $1200 a month covering $400 a month in taxes and a $700 mortgage and insurance.  The purpose for spending $50,000 on the mobile home is mainly to have a nice place to live.  The home I'm in is old and has problems.  Just looking for ideas or things I haven't thought of.  Maybe this is bad decision?  Tell me why.

I cleaned out a house for my landlord.  It was just super nasty.  Baby diapers, drug needles, etc.  He parked a stake bed truck in the driveway and I made 5 truckloads worth of trash.  In exchange i got to paint however i liked and 50% discount on my rent.  Now that i think about it he got a pretty good deal.