All Forum Posts by: Bill Schrimpf

@Ashley Guerra, lots of good things here. Paying down debt will help your DTI ratio, really important with your income level. Gift from Dad, saving aggressively are good things!

I encourage people to start with house hacking.  It teaches you to be a landlord and how to look at the investment side of things.  They usually don't cash flow, but a big part of your housing is subsidized by your tenant.  Since your owner occupied, lending is better.

If you find a 5% interest rate, please let me know, I want in on that!  Expect to find 7%.

@Alison Cromwell - Good on you to have $40k.  It's not easy.  Flip is a tough place to start.  Consider a live in flip, we used to use terms like sweat equity to describe this tactic.

Couple of lender ideas 

Get a co-signer

Talk to local or regional banks, you will need "portfolio" lender.

Get a bridge loan from hard money or private money until you quality for conventional financing.

Financing will be tough.  You don't have any experience.  That being said, you only need one "yes" in a string of "no".

@Nick Clossman - Interesting question.  My first stop would be the existing homeowners insurance carrier.  

Ive never seen someone ask if an ADU can be moved to a separate entity (LLC, trust, etc) from the primary residence. I'm curious to see what others say.

@Eyong Agbortogo - The tenant likely is confused as confused about what an estoppel is.  It likely just a quick conversation to explain to the tenant.  As others have suggested, get a new lease going.

I do wonder if there is a difference between what the estoppel says and what was actually paid...???  Not much you can do about it now, of there is...

Hard or private money is usually short term.  If you refi into a 30 year, your debit service will be about $5k +taxes and insurance, whatever that is in OR.  Doesn't look like it will cash flow.  If you live in one unit and do the house hacking thing, your mortgage gets subsidized.  Not all bad...

Or sell, and get out with $90k before taxes...

I can't speak to your market specifically but...

Talk to LOCAL or regional banks. 

Condider adding on to your current place. Construction loans are different than mortgages. Maybe it will pencil out. Can you add an ADU? Can you sub divide either lot?

if you bought off market, you should have some decent equity...

Sell both and get a 4 Plex

@Jeff White, you have good problems...

@Salvatore Annarumma - LLC laws differ state by state. As a practical matter, lots of people quit claim into the LLC . People ask about due on sale clause, so research that issue. Take care to not commingle funds.

The best advice is for you to spend money 💰 with an attorney in your state that is focused on asset protection.

@Steven Whipple Congratulations on your first deal!  Its so scary to do the first one.  Getting through all the hiccups that occur during inspections and closing is a right of passage.  There will be hiccups on every transaction.  It's important to have good advice so you can recognize a hiccup vs a gut punch!

Congrats, again!

Hi @Alex M. ,

Tahoe is beautiful, and super regulated.  Any construction will come with LOTS of permits.

I don't know SLT market, it's CA and im in NV, but I've helped more than one person sell in Incline and buy in Reno because the numbers work better for them.

I suggest you look into property taxes, and tenant protections of NV vs CA.  Consider Incline.

STR in nearly all Tahoe will be severely limited as nearly all municipalities are or will be regulating them. It's not your strategy, but seems important to know.

Consider seasonal rentals.  Many resorts hire seasonal staff that needs housing.

All said, if you can acquire well, and your plan is appreciation, Tahoe is an awesome place where real estate is a limited resource.

Consider snow removal.  It's a real expense at the lake.

Good Luck!

@Roy Gottesdiener House hacking is a beginner method.  It teaches you the basics of how to buy a property, some financial management, landlord & property management skills.  It may not cash flow, but it will subsidize your "rent".  Presumably, equity will increase, and if all the experts are right, rates will go down leaving you with an exit option of selling or refinancing.  If you can buy a cash flowing property, then do that, else house hack and get off the sidelines.