All Forum Posts by: Lynn T.

I have a piece of land that I think can be developed into 6-8 home in Decatur, GA 30032. Zoned R-75.  I'm looking for a builder and architect recommendation who is familiar with this kind of project. Thank you in advance!

@William Harris 

Heloc will have the same impact in terms of balance as the Mortgage and the lender will still have to count unused balance towards your balance anyway. 

Moreover, when you pull HELOC and have the outstanding balance on it, it count against your credit utilization rate, which will make your credit score drop.

Say you have HELOC of $100,000, and you pull $100,000 out to fund your next deal. Your credit utilization will be 100% which will negatively impact your credit score.

So in my opinion, if you know you will need money/capital anyway from this house, it is better to do it 30 years fixed. There won't be any negative impact on the credit utilization. Better yet, when you pay everything on time, you will get credit boost.

PS. I'm not a lender. So you can double check with your lender..

If you dont need the money from the sale to buy your other property under contract. Then I recommend Cash Out Refi as Primary Residence and lock 30 years fixed rate interest at a low price ie 3% now. After that you can move out and rent the house out at $1,400 I think you will still be positive based on the number you provided. 

Use the refi cash to reinvest - 

thats how I would have done it. Heloc has floating rate so the fixed 30 years will be more stable and predictable. 

Congratulations on getting started! First deal is generally not the bed deal, just need to get in. Welcome to BP! 

I just bought a Single Family Home in College Park, GA with the intention of #BRRRR.

I am in the mode Rehab right now.

Question; Should I scrape the ceiling? It is the entire house.

Here is the number.

$3,500 for the scraping cost/labor.

Return. Unclear. Maybe $20/month additional rental income.

I don't like how it looks but i heard time and again most people say you don't need to feel attached to it.

So. what should I do. Thanks BP!

Thank you all so much for your reply and valuable feedback. I would love to connect with your referred insurance agent, I haven sent you PM separately already. 

Thank you and thank you BP community :)

Hello BP

I have been trying to find an insurance agency that will write ONE policy to cover multiple properties. And would also be able to umbrella the LLC.

Properties are in GA. 

Does anyone have a great recommendation?

Thank you!

Make yourself be lendable. i.e. have a steady job and have good credit score. 

When you are ready.

- buy with FHA 3% down

- buy fourplex (live in one unit and rent the other three units)

- make sure the cash flow from other three units covers your mortgage and still have some cashflow positive for you. (extra bonus)

- if you are still young as you mention, you can have roommates in your unit to help pay as well.

That would be my advice and recipe to build wealth. 

Repeat same process next year.

Hope this helps,

Hi Mark,

San Francisco's laws of rental are sort of around rent control and rent ordinance. You have to understand both and how they fit into your real estate goal. Without understanding your goal it would be unfair to give you advice. The advice can vary based on your property, your goal, your investment strategy. For example, What year was your home built? Are you planning to rent to one master tenant? Are there any unwarranted unit in the house. Are you planning to sell in the near future or keep it an investment for a long time? What type of rental are you planning to do i.e short term/ long term / furnished /unfurnished? Happy to talk to you more - feel free to DM me.

Lynn

@Todd Ortscheid

Thanks so much. The lawyer I reached out to got more active after the New Year. I will keep your guy in my contact book for future advice. Thanks again.