All Forum Posts by: Mason DeJarnett

Michael Hooper, Brandon is on point. Very stable market. Population shift to county some, but don't see any concerns. Great potential in this area- worth the drive up to see for yourself if haven't already.

Thanks Manolo D. ! I was very surprised at this- and assumed they would add a surcharge as well, but they flat declined and only for that reason. We've only had one claim in 6 years, and I consider us to be very low on the risk scale. To apply for insurance- do you find yourself to be put through the ringer, or is it an easy process?

Speaking of "fire chasing"... was turned down by a carrier because a few of our tenants have BBQ grills outside the homes in decks. Is this common?

Curious how this one is going.. I never did see- are they true tenants with a lease? When I first read the post I assumed the folks were living their unlawfully- squatters. Not sure why I read into that but I did :) What actions if any have you tried?

Johnnie Fair - when I was referencing the 6-12% I was just saying that if you took that cash and put it in another investment- you might be able to make more over the long run with it. Either way it's a gamble- but my thought is as long as the stock market is giving me decent return through retirement accounts, stocks, ect- why pull that money to pay off a loan with lower interest (assuming that's the case in your local market, and assuming you are getting good returns in the market). I take for granted that some markets tend to have higher rates for investors, we've been fortunate to find great rates through both regional and local banks. I am fairly conservative, and like a good mix. I don't want to be leveraged to death in debt, but I also want to use it when it makes sense. I saw a note about 30 year mortgage on here, and I advise against that whole heartedly. I'd keep it 15 or 20 (and do).

I just heard a podcast on brrr and might have misunderstood it. Ok... I definitely did. I'm glad this game back up as I was able to study it. Search for it on the forum it's very interesting. I think it works more around forcing appreciation then refinancing, using the money to work towards the next one. Forgive me for speaking out of turn on that one. There's a ton to learn, and I'm far from arrived. I understand you wanting to take the risk out of it. We have met with over a dozen investors locally and NONE of them do it the exact same in regards to paying cash and leveraging debt. The biggest advice I'd give you is to go at YOUR pace, and your own risk tolerance. If you feel more comfortable with them paid off now (or after a year), awesome. Do it. Many folks with leverage debt to acquire more quicker- and in the mean time invest that money elsewhere. For example- why take money away from a return of 6-12% (if you can achieve that in market or elsewhere) to pay off a debt with 4% interest (again, if you can get that). It's just a balancing act of what makes YOU comfortable.

We used rentmonitor.com until it shut down this year. It was the easiest I have seen to date. So now, we use erentpayment.com. $10 and money is there 2-3 days. It works well for us but the site is clunky.

I'm surprised you can finance in personal name but have registered in LLC Kathy Henley. I thought mortgage had to match title.. at least in KY but could be wrong. I prefer the protection of LLC. Only have a separate LLCs based on my partner(s).

I have some property on my own, but the bulk is through partnership.

Partnerships offer a learning experience for both parties, and each partner should bring offerings to the table. I manage more back office work, my partner is better at pushing contractors to get work done than I am.

I agree with @Ellis San Jose, It's important to always be analyzing your time, expertise, and margins within partnerships.

Is the $31k house paid for? Your equity position makes a big difference on the direction you should go in my opinion.

I've used a HELOC to purchase a house, but quickly worked on the home, forced appreciation, had reappraised and refinanced to clear the HELOC. I tend to like things compartmentalized and in their own silos.

If it's commercial,  most lenders will only do 20 year mortgage in my experience- and frankly if it doesn't cash flow on a 15 year, I usually won't look at it.

Have you talked to a LOCAL bank that works with real estate investors? I had a national banker tell me to use HELOC, but most local banks can guide you through the process with more creativity.