All Forum Posts by: Paulina Espinoza

Since paid in cash, I just would deposit what I needed to pay bills, and the rest used to finish my house renovation that I started years ago, before I started getting into real estate investing.  I made an addition in my 1906 house, change floor plan, new electrical and plumbing, finishing still in process, adding value to the house. That the only proof, city permissions, blueprints, etc.  And my daughters came back to live with me after finish college, they have to pay me rent, have a lease, but lender don't accept it like income.  Besides, also cash.  Is it going back to a 9-5 job to show a secure income the only option?

Hi everyone, I am a newbie in investing in Small Family Rentals. After more than a year, finally moving from my analysis paralysis, I made an offer on a duplex . Since my house has equity, at least $200,000 from an appraisal from last year, my plan was to use the equity to make the down payment.  Since I am self employed, mostly paid in cash, my income tax shows only an average of what I made per year because my income varies as self employed.  I can not get a loan because my income tax shows low income in average.  With this home equity, what else can I do? I want my house equity start working form me.  I really appreciate your advice. 

Thank you Mike and Evan. The reason I put low vacancy is because they have long term tenants, and a low capEx is because is a well maintained duplex. This duplex is already taken, but indeed I need to take into consideration the rates the underwriter will take into consideration. My daughter and I are newbies looking for the first SMF property. Trying to find one quickly we are looking thru MLS with an agent. Properties are going so fast that made us think that investors are lowering capEx and vacancies under these reasons that I put them lower. Please, I need help from experts investors like you in how to start at this time of the market. If there is an investor close to where I live, we would appreciate his/her help. Anything we can help them back, we would love to do it because we know that we are going to learn a lot. We did a flip last year, came up beautiful. Only experience, starving to learn more and have experience investing in rental properties.

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@Michael Ablan That’s a great idea about just paying interest in the money I use, because I can leverage and buy more properties. Hopefully my bank can help me happen. I haven’t tried to borrow money from other lenders yet.

@Malcomb Stapel Thank you Malcom, I also think is better to buy several properties with the equity of my house, after all is what we learn here at Bigger Pockets.

Since this would be my first duplex, and I am kind of analysis paralysis after my first flip from last year, from which my daughters and I learned a lot and we just made a little bit of money, now that my lender, my bank from more than 25 years, suggest this idea (of paying off the investing prop. with the equity) I hope they don’t back up from lending me the money.

Keep you all posted about this. Thank you for your advice, make me feel more confident.

Looking for my first small multifamily rental, my lender has suggested me to use the equity of my house to pay in total the SMR and therefore just to have a mortgage on my house. Is it a good idea?  And then, since the SMR is going to be paid off, get another home equity loan -since duplex, triplex and quads are considered residential property- to make down payments in more SMR?- Thank you,Newbies in long term buying and hold.

Please, count with me.  My daughter and I are newbies from Brenham, TX.

@Salvatore Lentini

Thank you Salvatore for sharing your knowledge.

Last year I started with a flip house, and even though I didn’t make any profit, I did learn a lot. I was not educated enough in real estate, I did it just from I had watched from HGTV shows from years and some books from flipping houses. Now I have been readings books, listening everything I can from Bigger Pockets, etc. from the last 6 months and my goal is to invest in Residential Multifamily Units. And these are my questions :

1) Is it better to have a LLC (or S Corp) before buying rental properties or any kind of investment in real estate? Or after you have more? Is it ok to form one from Legal Zoom or GoDaddy to start with?

2) Does the financing get easier or more complicated if you have a LLC.?

3) To start with, would you buy retail, from listed properties? Or make offer to properties that are not listed for sale with brokers, you know, those that you see from driving/walking in your town?

4) How do you analyze and find out how much to offer, the value of the residential multifamily units that are not listed for sale? So far I know that the market value of residential analysis is not the same as commercial residential .

Thank you once again for giving back to the community and I will looking forward for your response.

M. Espinoza