All Forum Posts by: Melissa M Paul

Hi there everyone,

Really just wanting to gain more perspective on a living situation. The landlord of the home I have lived in since I was a child is now wanting to sell the home to my mother. The situation here is that one, I do not believe my mother will qualify for a traditional FHA or Conventional loan as her DTI is too high and two if I were to join her on a loan, I would not be able to purchase my own home for some time. I am okay with the latter option, but it will make living situations very difficult for me.

With that being said, I thought it would be best to purchase the home under an LLC and rent to my mother and other tenants.

Here are the questions I have:

1. Can I rent to a relative? As she will still need a place to live and will continue getting mail at the property.

2. When going to refinance out of the HML are there FL serviced cash-out refinance companies that you have heard about?

3. When going to refinance, would I have to transfer the property into our names and out of the LLC and then back into the LLC after refinancing is completed?

Thank you so much!!

Hi there everyone, 

Really just wanting to gain more perspective on a living situation. The landlord of the home I have lived in since I was a child is now wanting to sell the home to my mother. The situation here is that one, I do not believe my mother will qualify for a traditional FHA or Conventional loan as her DTI is too high and two if I were to join her on a loan, I would not be able to purchase my own home for some time. I am okay with the latter option, but it will make living situations very difficult for me.

With that being said, I thought it would be best to purchase the home under an LLC and rent to my mother and other tenants.

Here are the questions I have: 

1. Can I rent to a relative? As she will still need a place to live and will continue getting mail at the property.

2. When going to refinance out of the HML are there FL serviced cash-out refinance companies that you have heard about?

3. When going to refinance, would I have to transfer the property into our names and out of the LLC and then back into the LLC after refinancing is completed?

Thank you so much!! 

My mother has rented a home in Florida for nearly 10 years and the landlord is finally wanting to sell it to her. The property has gone up tremendously in value over the years and is the perfect investment opportunity. I am just not entirely sure what strategy to take with the home. 

A projection of the numbers:

ARV: $280K

*Goal Acquisition Price: $165k- $180k 

Estimated Repair: $60K -75K 

***We know that we want to keep this home in the family, but want to be able to pull money out of it in order to purchase more property.***

Here were some of the strategies I came up with: 

1. BRRR- I could purchase the property under my LLC and find a lender to fund the deal. I could then refinance the loan to pay the initial lender. My mother would be my tenant. (I do not reside in the same state)

Current obstacles:

Obtaining the entire down payment and lender (at the moment) & Finding the best refinancing for a company.

2. FHA- My mother can purchase the home traditionally, but won't have the funds to remodel the home. I am also worried that this process will prolong the chance to pull money out of the home.

3. Ask the seller to offer seller financing- This way the property will still be under our ownership and fewer funds will need to be acquired by a lender.

What would you recommend in this situation? 

Thanks ahead of time! 

@J Scott

Hi there! I hope this reaches you. May I ask if you still invest down here? If so I am more than happy to send you deals when they come across.

@Frank Patalano

Thank you!!! I most definitely will!

@Frank Patalano

Aww man, so much at the moment. The first being fear. Fear that I don’t have enough knowledge of all the steps really. I am actually working on getting both my FL and GA real estate licenses as an extra aid, but my heart is geared towards investing. I want to do my first flip and purchase this year, but there is so much to learn. I am on BP almost everyday, listen to investing/ wholesaling podcast whenever I’m in my car, but I still feel behind. What sometimes discourages me is the price of mentor ship is no where reachable for me. I want to know much more. I want to acquire a level of knowledge that will bring forth confidence, ESPECIALLY when I am talking to buyers and sellers.

Secondly, my financial status. For obvious reasons such as marketing, mentorship opportunities, and balancing life with getting to my end goal. But also because I am afraid of what the last 7 months have done to my credit score.

Thanks for this post. It helped me a great deal this morning.

@Shannon M.P. Lewis Congratulations!!!

Hi there everyone, 

I am new to BiggerPockets and actually became a member for the purpose of real estate but I have a huge issue at hand regarding my car (or rather the car I am financing). 

Super long story short, I purchased a brand new car after being persuaded to believe that it would be the best thing to ever happen to my credit and future car purchases (as it would allow me to get a new car in a year with 0% APR)

I called the dealership when I began to experience extreme financial hardships and they said that because I made 1 of the last 12 payments late, I was ineligible for the 0% APR and that my best bet would be to continue paying the car.

I was super stuck. I had to stop going to school out of panic that tuition would get in the way of me paying the car (as I was constantly being reminded that a voluntary repo would kill my financial future, my chances of purchasing a home, and make it more difficult for me to get approved for student loans etc) I ended up trying to to keep up with payments. 

My credit score took a huge hit after missing my first payment, and then hit the floor after the proceeding missed payments. 

Currently I am 3 days away from being 90 days past due and my account is probably entering repossession status as I type this. I just want advice. I have been to serval dealerships, We Buy Car establishments and attempted refinancing and even wrote Toyota Corp. ALL ENDING IN FAILURE. 

Not having a car would be a huge adjustment but I am not afraid of that aspect. Life after a repo is what I a scared of. I want to buy property  and although my heart is centered on being a real estate investor, I am not super sure how my credit is going to impact that process. 

Another potential issue I am concerned with is that I am in the process of learning and taking action in wholesaling. Without a car, I may not be able to really drive for dollars or simply drive to look at properties. 

Granted, I am aware of the potential acton that can be taken against me by the loaner.

Car info:

2017 Toyota Corolla

My car is priced currently at $20,070

It's market value: $10,381

Highest Offer from an establishment: $12,000

Car note and insurance= $725

Monthly car payment:$460

I have been doing all the side hustles I can think of currently from driving Uber to Door Dash (in addition to my main job) but I am not catching up fast enough with my payments. 

I honestly need advice. The anxiety is killing me. 

 Hi there! Newbie here. I am currently trying to learn the in and outs of wholesaling. May I ask if you have been actively practicing? Mind sharing good and/or bad experiences (or lessons)