All Forum Posts by: Mario Morales

So I have heard that LVP is waterproof to a degree and for only so long (in hours), once you get flooded, I have to get up to speed to see if that has changed. I would go with tile. If you get a flooded, which I just did, I was grateful for tile. While we try our best to make garden units/basements great. Tenants are less pickier when looking at garden units then 1st or 2nd floors. 

Get some "good" tenants, and include utilities in rent. Just get familiar with the upside of renting a basement if its non-conforming or illegal. 

Quote from @Jaycee Greene:

Hey @Account Closed! I've seen this same reply from you in a couple other posts. This type of self-promotion is only allowed within the Classifieds section of the Forum. I'd hate for the BP admin (@Jonathan Greene) to lock your account as you may have valuable information to share with novice investors...this just isn't the right place to do it.

Now, @Mario Morales, what price range are you targeting for the new property?

Looking at, and that depends on getting an 80% LTV on heloc/refi, at 600-650K

yes, under my name. 

I'm looking to pull equity from a property, but I have a great interest rate that I don't want to lose. My thought is to use a HELOC for the down payment on a new property (20% down), then once I acquire it, do a cash-out refinance to pay off the HELOC while keeping my original low rate intact. Does this strategy make sense, or am I overlooking any potential pitfalls?

what if he got a HELOC, used the funds to get a property, then cashout-refi the new property and pay off the heloc? as helocs go for around 10% and the new rate could be 7% on the cashout refi. Im not expert but Ive took out a heloc and dragged on going on my advise and it sucked

I've been using the MLS, but I like the idea of talking to neighbors to see if they're interested in selling—or at least getting on their radar. After completing a massive gut rehab, I'm now looking for minimal value-add opportunities. If I can find a property that just needs cosmetic updates, covers its expenses, and leaves a little extra, I'm interested. I buy and hold.

I've heard that you cant force a tenant, at least in chicago or the state on how to pay rent, as you have to accept cash as well if thats how they want to pay. Not sure but heard it somewhere

I went through the same thing with my first house hack. Turnover costs can be frustrating, but they’re worth it for the peace of mind that comes with having quality tenants—tenants who pay on time and don’t bring the daily stress of dealing with bad renters.

If you keep these tenants, they’ll likely cause more damage, knowing they can get away with it. In the long run, that will cost you more. It’s better to cut your losses now.

Hate the process of finding new tenants? Suck it up—that’s real estate. But if you put in the effort to find the best tenants possible, most of your problems will disappear.

Quote from @Riley Poppell:

Quote from @Mario Morales:

If you own a 2-flat with an additional non-conforming garden unit (basement) being rented, and you're considering a cash-out refinance, how will the lender evaluate the rental income? Specifically:

• Will the lender only consider the rental income from the two legally zoned units, even though all three rental incomes are declared on your tax return?
• Will they base their calculations solely on the income from the two legal units and disregard the non-conforming basement?

Additionally:

1. What is the current loan-to-value (LTV) ratio for rental properties?
2. If the property were owner-occupied, would I only receive credit for one rental unit's income, while the non-conforming basement income wouldn't count?

From my understanding, it might be more advantageous to refinance as a rental property at a lower LTV with income from two units, rather than as owner-occupied at a higher LTV with only one rental income considered. Does this make sense?

Hey Mario, I need a few questions answered before answering some your questions. Here are some answers though. Feel free to add me as a connection and follow up through message.

1. The collateral makes a difference.

2. When we order the appraisal everything will come up so it will need to be listed correctly or else the 1007 will come in low.
3. Appraiser will check the rent schedule and if there were any improvements done.

4. When you converted the 3rd unit and put it on your tax return was it done through the city?

5. If is 65% and below LTV you won't need to provide reserves.

1. Not sure what collateral means
2.What do you mean by "listed correctly" as in reporting the rental income on your taxes?
3.Rent schedule available, as well as lease and income reported to the IRS
4.Not sure by what you mean doing it through the city, are referring to rehab permits?