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All Forum Posts by: Lisa L Day

Lisa L Day has started 4 posts and replied 11 times.

Post: Help Creating a Lease Agreement

Lisa L DayPosted
  • Northern Virginia, USA
  • Posts 11
  • Votes 1

Hover over "tools" at the top and select "lease agreement packages".  It's included in Pro membership!

Post: To Convert or not to Convert to Non-Smoking??

Lisa L DayPosted
  • Northern Virginia, USA
  • Posts 11
  • Votes 1

Thank you @Nathan Gesner!  I'm going that route. I appreciate your opinion.

Post: To Convert or not to Convert to Non-Smoking??

Lisa L DayPosted
  • Northern Virginia, USA
  • Posts 11
  • Votes 1

I'm buying a 4 plex in an area with cheap rent and a lot of smokers in general, a blue collar area.  Currently, the 4 plex allows smoking and pets.  To convert it to a non smoking 4 plex, it would cost about $25,000-$30,000 up front.  We would get about $100-$150 more per month per unit ($400-$600month) more for fixing it up...  Right now it's dated and junkie and stinky, but safe and in working order.

So....Do we spend the money up front to convert it and get more rent and cut our tenant pool in half and go with non smoking?  OR keep it smoking, only fix up a bit up front at possession, $5,000? and keep the rent cheaper?  It's all 4 or nothing in my book.  A non-smoker doesn't want to share a building with a smoker; I never would!

Thoughts from experience? Thanks!

Post: Application Fees: run and charge for both adults?

Lisa L DayPosted
  • Northern Virginia, USA
  • Posts 11
  • Votes 1

I am in Virginia. 

Thank you for the responses thus far!

Post: Application Fees: run and charge for both adults?

Lisa L DayPosted
  • Northern Virginia, USA
  • Posts 11
  • Votes 1

Hi community!

I'm starting my first ever round of applicants for my first door.  If 2 adults are applying (not married), do I run background/credit checks on both adults?  If so, do I charge the $38 (RentPrep smart move) PER applicant, that then goes toward their security deposit?

Does your opinion on the matter change if it is a married couple applying together?

Thank you for your opinions and insights!

Lisa

Post: Should I/How Do I Access Home Equity

Lisa L DayPosted
  • Northern Virginia, USA
  • Posts 11
  • Votes 1
Originally posted by @Caleb Brown:

Pull and HELOC. Most of the clients I work with have 100-300K in equity that they can use to invest. It's cheap to leverage now

Thanks Caleb!  We can most likely get around $300k in equity and we also qualify for a $300k mortgage from the bank.  That leaves me with a couple options and I'd like to make sure my math is correct.

  • If I put all $240k on the HELOC, we would have to pay it back in 15 years, and would currently come with a 3.85% rate
    • That would be a $1,760 monthly payment for the 180 months totaling ~$320k paid
  • If I put the down payment on the HELOC ($60k) and the other $180k in the mortgage, I would have a 15 year loan at 3.79% and a 30 year loan at 3.5%
    • That would be a $1,250 monthly payment for 180 months and an $810 monthly payment for the remaining 180 months totaling ~$370k

Another factor I'm considering is the closing costs of getting the mortgage will be in the $1,000s, whereas the HELOC will be in the $100s.

Is there anything else I am failing to consider?

Post: Should I/How Do I Access Home Equity

Lisa L DayPosted
  • Northern Virginia, USA
  • Posts 11
  • Votes 1

Here's the skinny.  We have an accepted offer on our first investment property!  Duplex, $240,000.

How should we pay for it?  We have so many options and my head wants to explode. :)  We can pay the 25% down payment with stock investment money and get a traditional mortgage on it, but this seems the least attractive because I'd prefer the stocks to stay put. 

We own a house, our primary residence. We owe $500,000 and we could easily sell it for $850,000 for it today. SO. Do we do a HELOC or a Home Equity Loan? WHERE do we go to get this?? Do I work with my current mortgage company? Do I walk into a bank and say, "Hey, can you help me access the equity in my primary residence?" I've caught wind of home equity credit/loans not being able to be used for purchasing a new Rental property, but after poking around on here a bunch, that seems incorrect. Are HELOCs for more short term borrowing? This would be for the long haul.

ALSO, if we CAN pay the whole thing upfront, is that the best way tot go?  Why or why now? I'd LOVE advice and direction.  

Thank you beautiful people!

Post: Always a negative CoC ROI???

Lisa L DayPosted
  • Northern Virginia, USA
  • Posts 11
  • Votes 1
Thanks for the comment Russell!  Can you explain to my why CapEx doesn't effect monthly cash flow?  That's for larger expenses that come up, right (roof, HVAC...)?

Originally posted by @Russell Brazil:
Originally posted by @Lisa L Day:

I don't know ACTUAL numbers for sewer/water and garbage or insurance.  Maybe I'm overestimating?  I don't want to assume I'm playing it save and then have negative cashflow.

Tenant pays water. Your insurance is way too high. Capex doesn't affect monthly cash flow, thus why its not a factor in capex. Your closing costs are way too low as well.

Post: Always a negative CoC ROI???

Lisa L DayPosted
  • Northern Virginia, USA
  • Posts 11
  • Votes 1

THANK YOU all!  I was hopeful about this area.  Close to home and I know it fairly well.  Darn it.  

Post: Always a negative CoC ROI???

Lisa L DayPosted
  • Northern Virginia, USA
  • Posts 11
  • Votes 1

I don't know ACTUAL numbers for sewer/water and garbage or insurance.  Maybe I'm overestimating?  I don't want to assume I'm playing it save and then have negative cashflow.