All Forum Posts by: Lawrence Henkel III

@Alice Huang I shopped around for a refinance. I was able to lock in a 20 year @ 3.85% on a SFH rental my PI will be about the same but I'm shaving 9 years off the term. This was with the "spaceship" lender headquartered in Detroit, MI. My property is in Ypsilanti, MI. Other lenders were offering:

Local credit union

3.875% for 15yr

4.625% for 20yr

5% for 30yr

Regional bank

4.25% 20yr or 30yr

@Sharon Ho

Can you just put a door up with a lock on it. Put this space is not available for use at all in your lease. We did that with a shed on one of our properties. The cement floor was upheaved when we bought it there is a garage with plenty of storage so we just locked the shed and excluded it’s use from the lease. A little different being in the house but it would stop you from jeopardizing your rental certificate.

@Bryan O. Rent loss insurance coverage on your insurance policy is a secondary coverage. Meaning it can only be activated if you have a claim on your primary coverage covered under that policy. If fire damage makes your property uninhabitable and fire is covered under your insurance policy you can then have a secondary claim under the loss rents provision. However if your tenants can’t pay rent and you don’t have a primary claim on your policy for a covered loss you are not covered under the rent loss insurance provision mentioned in your policy.

@Dan Hedges I just closed on a cash out refi on a rental property with Lake Michigan Credit Union. It was a pretty easy process . 75% LTV.

Thanks @Andrew Angerer. So we completed our first BRRRR and are looking to repeat the process with this one. We have have another rental that we own with a mortgage too. All of the funds are coming from the Cash out refinance from the BRRRR to pay for the purchase and repairs of this property. The rehab is mostly cosmetic and we will be doing the majority of the work ourselves. There are currently tenants in this property that will be moving out before the property closes. I already have an umbrella in place so this would be added to that policy. I don't think the rehab will take 6 months but I like to plan for the unexpected. The ARV is based on what similar properties in the area are selling for today. So who knows what the future will bring. The renal rate is what I'm the most uncertain about. 3 bedrooms are going for between $1,100 & $1,300 there are not a ton of 4 bedrooms in this neighborhood that I have seen the asking rent so the $1,500 is based on the more general area. I have a 4 bedroom a few miles away that I get $1,700 but this neighborhood is a little further out but it is walking distance to a very nice lake.

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I highly recommend going down to City hall and talking to them about what you want to do. We did and they pulled our property file and were able to tell us exactly what we can and can't do and if we could request a variance for our specific property otherwise you will be given some generic info that may or may not apply to your property based on the way it is zoned. They were super friendly and helpful. 

Ypsilanti City Council just approved this new ordinance at the 01/08/2019 City Council meeting if you are in the City. 

Resolution No. 2019-007, approving Ordinance No. 1330, an ordinance to permit accessory structures in the form-based districts (CN, CN-Mid, CN-SF, etc) to be a maximum of 25’ in height or to match the height of the primary structure, whichever is lesser. (Second Reading) 

Offered By: Council Member Symanns; Seconded By: Council Member Wilcoxen 

Approved: Yes – 6; No – 0; Absent – 1 (Murdock)

I have a house in Michigan that is a 5 bedroom but you have to walk through one bedroom to get to the other. It is listed with the city and county as a five bedroom it was advertised as a 5 bedroom when we bought it. When we advertised it for rent we listed it as a 4-5 bedroom. The thought was that if people came looking for a 5 bedroom many would be disappointed by the setup of this house. If we listed as a 4 bedroom most would be happy about the bonus space. So we listed as a 4 bedroom but in the ad headline called it a 4-5 bedroom. I was also going to get the floor plan drawn up for online advertising but ended up renting it out before I could do that. This is a college town so bedroom separation can be more important than if a family was renting the space.  but we had a good mix of students and families that wanted to live there but it ended up going to 4 students. I was told by our building inspector that to be considered a bedroom it has to have 2 points of egress and there is a min sq foot requirement and min ceiling height requirement. (closet is not necessary) however all 5 of ours have closets.  

Hello what cities are the properties located in? If you could send a list to [email protected] I would appreciate it Thanks.

I guess there is nothing stopping you but there is also nothing stopping the IRS from coming to get the taxes you owe when you do that. They will likely hit you with penalties & interest. The question is are you willing to risk it?