All Forum Posts by: Louise A.

@Richard Michael

The Alpine meetup is great too!  Hope to meet you....  

@Kohl Kitzmiller

Hey!  Make sure to come to our local RE meetings!  CIREIA, INREIA (this Tues.) and the Alpine meetup are all good for networking.  Looking forward to meeting you soon.  

@Matthew Schroeder

Hey!  When are we going to get coffee?  I only ever see you on BP!  

@Brandon Battle

I would definitely try to convince the wife!  It took me years to get my husband on board, but now he's very happy!  

Just a note about HELOCs. I'm using HELOCs for cash as well, and assuming our HELOCs are structured the same, there is some risk there depending on how fast you can pay off the debt. If interest rates go way up, your payments will rise. If you can pay them off within 18-24 months, I wouldn't be worried, but its not a good plan to use the HELOC money over a long period without repayment.

@Jon B.

Your situation sounds great and house hacking is an excellent way to get started in RE!  

I'd start looking at and analyzing properties.  It takes a lot of time to set your criteria (location, cash flow, rehab etc.) and the more real estate you look at the better choices you'll make.  Feel free to contact me if you have any specific questions....  

@Chris Eden

Just a couple of thoughts to add - my lender will use 75% of rents as soon as you've got leases and doesn't need 2 years of ownership.  He's with Ruoff, maybe they work in KY?  Make sure to call lots of lenders.  Don't just assume that something isn't possible because one lender told you it wasn't.  

Second - LLCs. You can't use residential 30 year financing in the name of your LLC. It has to be in your personal name. If you've flipped the property out of your personal name into the name of your LLC and interest rates sky rocket, banks may consider using the due on sale clause to call back those low interest loans. Also, using the LLC correctly requires some education. If you don't use it correctly, the LLC is not providing you any protection. Ask me how I know... I have a business structure now and own 38 doors. I would not advise setting up LLCs until you know you're going to be in business for the long haul and have a larger portfolio.

Let me know if you have any specific questions.  Happy to help!  

House hacking is the best though.  Great start!  

@Aaron B.

Check out this website: http://indyeast.org.  I think the area you're talking about is the 'promise zone' and lots of money is being invested there.  St. Clair place has seen prices rise substantially over the last couple of years.  If you're willing to hold for 5-10 years, I think it would be a great place to by.  Just pick your block carefully!  As you know if you've been driving the area.... 

@Barb Getty

Fancy meeting you here!  

@Tiffany S.

Hey!  Congrats on the house hacking!  

Always always always use a lease. You're in a business arrangement with somebody living in your property, and that person needs to know the terms and conditions of the agreement. If you're friends with a real estate agent in VA, I might ask them for a residential lease. We have a good lease through the realtor association here in IN. There is probably a lease in the forms section of this website too. I never used to run credit and background checks on my tenants (I have PM now), but I would call prior landlords, employers, and 2 professional and 2 personal references. I got a pretty good feel for who the applicant was from making all those phone calls. Very time consuming though. Let me know if you might have other specific questions I could answer. Good luck!

@Patrick Flanagan

Welcome to BP! House hacking is awesome. In Indy my husband and I can live for free in 1/2 a duplex. Maybe that's possible where you're from as well? At the very least, you'll be able to reduce your housing costs. Both options are great - renting rooms in a single family, or buying a multi unit. I wouldn't necessarily spend what the VA will give you. You have to feel comfortable making the payments. First step would be to find an agent and to start looking at properties. Let me know if you have any specific questions...