All Forum Posts by: Mary K.

I currently tell my tenants that I have a partner who has 50/50 say on decisions.

A lady I met through BP recommended this for several reasons and it works well for me.

There are other metrics to consider like loan pay down and tax savings. 

Also, lower CoC returns are usually in better areas with great tenants. Less stress is difficult to measure :)

Hmm. I looked into a cashout refi on a rental and the high rates didn't make sense in my situation.

What I did was asked my bank to run the numbers for a couple different scenarios and then compared.

Have you looked into a HELOC for either the primary or the rental? A lot of banks do them on rentals. Maybe this is a cheaper rate than you debt?

Hey!

I haven't done this myself but this definitely seems doable. I recommend going directly to a mortgage specific bank and asking how they recommend you go about it. Goggle "mortgage bank near me". I would be very transparent about what you want to do and they can help you figure it out.

 It's necessary for the individual on the mortgage to be living there to get primary residence rates and lending options. Multiple people that do not reside in the property can also be on the a mortgage too and it won't affect the lending options (as far as I know).

I encourage you to get a legit contract written up by a lawyer that details how it will be managed/problems solved and what to do if one of the partners want out. Try to run through some worst case scenarios and get how you would deal with that situation in writing. 

Post the numbers this property :)

Is this for flip or rental?

Rental - What are all the monthly costs (property manager, taxes, mortgage, insurance, repairs budget, cap ex budget, utilities, vacancy) and upfront expenses (rehab to get rent ready, etc)?

Flip - Prop purchase price, repairs, financing costs, title, holding costs, short term capital gains tax on profit, ARV, agent selling costs.

There are lots of great books about how to run numbers for a rental and flip. Also, you could try to connect with someone in your area and follow them around-> see what costs they account for. I recommend doing both :)

I think this varies greatly state by state so take my response with a grain of salt.

I personally email and do certified mail in situations like this.

Just curious, have you been inside this property recently?

Congrats on your success!!

I always had tomato plants growing in my yard as a kid. I also plant them where ever I move. Makes it feel like home :)

I would include that as well as vacancy, repairs, and other costs associated with the rental. I think it's ok to buy and not get a great return, but don't try to convince yourself a property is performing better than it is. Just my thoughts :)

Awesome!! Thanks for the break down. Well done :)

@Nicholas Brady

It's not normally one or the other.  But to answer your question :), you don't need a degree of any kind to invest. Also, you can invest while doing other things such as working a regular job or getting a degree. I invest while working a full time job completely unrelated to real estate. 

I see people going to private colleges racking up 60-120k so they can work as a bank manager, teacher, etc earning 50-70k and I feel like they got screwed. If you can get a degree in something that interests you, maximize scholarships, and in state tuition for 10-15k a year, I think a degree is going to benefit you. Maybe you develop a life long passion for real estate or perhaps 2 years down the road, you discover it's not for you. Doesn't really matter if you have a fall back plan.

That said, take my thoughts as what works for me personally. Whatever you decide on will be right for you :)