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All Forum Posts by: Michael Harrill

Michael Harrill has started 2 posts and replied 5 times.

Hi All, I'm currently building new SFR's using a HELOC on primary with the intent of either obtaining a DSCR or traditional mortgage cash out re-fi to repeat the process (build, rent, cash out, pay off HELOC, repeat). W-2 income and credit is strong, but would like to keep the rentals in an LLC. It is a headache to go the traditional route and having to quitclaim the deed, not to mention the time and hoops one must jump through these days. I am a GC and can build cheap enough to cash flow on a new property, so does it make more sense to go the DSCR route? Thanks in advance!

I have a tenant who, to no fault of her own or the landlord's, has had to endure dealing with a flooded kitchen due to a broken water pipe. The PM has been very responsive, but unfortunately does not handle this type of situation, and this is not a quick fix. So we've had to deal with insurance company, water/mold remediation company, ripping out the whole kitchen, ordering materials, scheduling subs, etc. Needless to say, it has been a daunting task coupled with a tenant that has bullied our PM company, threatened legal action, demanded reimbursements/credits for more than what should be allowed, even though she is utilizing the rest of the property to live/work. We have been courteous, professional, and have documented everything while being above board on repairs, communications, issuing rent credit, etc. She has purposefully missed appointments for subs to delay the process, only to complain how long the process is taking.

I like the idea of the Happy Clause and will be sure to incorporate that into the next lease, if allowable. The tenant moved here from out of town to this small town where we are reputable landlords and reputable PM's. I suppose she does not know it would be very difficult for her to rent elsewhere locally once word gets around how problematic of a tenant she is. Not to mention, she has lied about having pets, and we have a no pet policy in our leases, unless of course, it's a service animal.

Post: My current thoughts on how much equity to leverage 🤔

Michael HarrillPosted
  • Real Estate Broker
  • Salisbury, NC
  • Posts 6
  • Votes 1

At the higher rates we are currently seeing in the market, are you bale to cash flow your properties taking out 90% LTV? I have a similar situation, but a little different whereas I am using a large HELOC on primary to build rentals, then re-fi, repeat, but with the rates ever increasing, getting them to cash flow at the higher LTV has forced me to leave more cash in the property. Ugh! Any insight would be greatly appreciated!!

Post: Purpose Build STR Duplex

Michael HarrillPosted
  • Real Estate Broker
  • Salisbury, NC
  • Posts 6
  • Votes 1

Great information here, especially learning about modulars being an alternative to stick building. Justin, did you end up doing the contracting yourself or did you hire a GC? I was curious as to the $95/psf included the GC fees, water/sewer and HAVC?  I am looking to do the same thing with 4 lots here in the Charlotte Metro area. I recently acquired my GC license for the purpose of saving money on building my own rentals, but I also like the modular idea of saving time and headaches dealing with subs for these smaller projects.

Post: Financing Options For Rentals After COVID-19

Michael HarrillPosted
  • Real Estate Broker
  • Salisbury, NC
  • Posts 6
  • Votes 1

After purchasing our first rental property with cash last year and planning our strategy for the remainder of 2020, including cashing out the rental (delayed financing), using the cash leverage to build 4 duplexes, we've come up against some obstacles. Lenders who were chomping at the bit for our business are now pulling back and assessing their risks. Our goal was to keep our rentals in an LLC and finance with a lender through the LLC for liability reasons. However, it's been difficult the past week and a half to get the ball rolling. Of course it would be easier for us and the banks to go the traditional route of financing, but then there are the liability issues, seasoning rules, etc. Any other investors out there in the same boat? If so, how are you dealing with it? I appreciate your time!!