All Forum Posts by: Michael Janke

I purchased a property with a hard money loan for purchase price only. I am using a HELOC (on my personal residence) to fund renovations. My lender is saying that I will need to wait 12 months with the new rules before I can do a cash out refinance.

Is there anyway I can include paying back the HELOC in a refinance, but call it a rate and term refinance?

Good afternoon! 

I am 2 weeks from closing on my first deal- a duplex house hack. The property will be in my name, and it seems the general consencus is that someone just getting started doesnt need an LLC. However, I have also been told I should get a bank account to collect deposits and rent in, and to pay expenses from. Should This be a business account, or just a seperate personal checking? What are advantages/disadvanteges of each? Can you get a business account without an LLC?

I plan for my 2nd deal and beyond to be BRRRRs, and will have an LLC later on. Should I go ahead and get one now, or wait?

Thanks,

Michael

Thank you all for the replies and great advice!

Update: I am officially under contract, and I just got to see the occuied unit and meet the tenant. She was super nice and clearly loves the unit and is taking good care of it. Definitely think I am getting one of the good ones :)

Sounds like my next step is a call to the Section 8 office to ask about raising the rent and also getting the ball rolling on ownership transfer.

I am considering purchacing a duplex in St. Louis, and one unit has a 100% section 8 tenant on a lease through January 2020 (at about $200/mo less than what rentometer shows for the area average). I will be moving into the other vacant unit. My plan would be to update the kitchen of the vacant unit before January, then not renew the tenant's lease so I can move into the other unit and rent out the nicer unit.

In general is it a good or bad sign that the existing tenant is section 8? I know its garunteed income, but I have also heard they are less likely to care about the property and it may be in bad shape (I have only seen the vacant unit at this time).

Is there anything I need to know about inheriting a section 8 tenant? do I need to get approved to be a section 8 landlord?

Thanks in advance!

I am in the process of purchacing my first property. I met a lender that a friend recommended and really like him and got preapproval. I started talking to the agent that the lender recommended, but also reached out to a different agent that another friend recommended. I am now neading to choose which agent I want to sign with. The lender and agant that know eachother are stressing that they have build a successful team and want to work together. How much will it really disrupt in my buying process if I go with the other agent? IS staying with a team that knows eachother really that benificial?

Thanks in advance!

@Aaron Yount the more I think about it, the better a BRRRR sounds really. Then I don't need to rehab multiple units at the same time like if I went with a 4plex.

Do you have certain criteria you look for in a potential BRRRR that will help me filter through properties? Certain $/sq foot or similar metrics?

@Aaron Yount thanks for the reply. I have thought a lot about doing a BRRRR, and am in the middle of David Greene's book right now which makes it even more attractive. I am worried about brrrring for my first deal since i don't have experience and expect things to move pretty slowly. I'm glad to hear that you pulled it off very successfully. Do you mind me asking, how did you finace it before the refi?

I have spent the past several months learning all that I can and saving up, and I am ready to buy my first deal, but can't convince myself of the best strategy is for my first deal.

I think my best move for starting it to house hack a 4 Plex, but I'm not sure if I should get something rent ready and just learn the process and get cash flow, or get something I can fix up and add value to. I also will need to use owner occupied financing, so I am nervous about finding the right house in a location I want to live. I have thought a little about a 203k loan, but have heard that there are restrictions on who can do the rehab work. Anyone have good or bad experience with 203k?

A few factors adding to my fears:

- I might be moving in May, and am worried about being half thought a Reno and needing to move.

-I am training for a half iron Man right now which takes up about 10 hours per week, so I have less time to put toward a reno.

Any advice would be really appreciated! Thanks!