All Forum Posts by: Mike Warder

Hi @Gary Onstad, would you mind sharing th PM's you've had problems with in a private message? I'm looking into the Savannah area and have been scanning for PM's. I think we've all had bad experiences, but when you get a great PM, everything seems to work out okay. Don't lose heart!

All depends on the dollar amounts you're dealing with, how much you want to leverage yourself, and what your goals are. If you can buy a second property in full with cash with a refi from your first property, have you considered buying multiple properties with conventional financing and your cash as down payments?

C.J. Baumann I have properties in multiple states where I don't live. I would say the most difficult thing for you will be finding the right property management company. But, that's hard to do even when you're living near your properties. When you retire, do you plan on self managing? If so, then maybe Texas is the right play. If you'd rather not manage, then it shouldn't matter where the properties are.

Typically for four units or fewer, lenders are looking at the borrower's credit worthiness (debt, income, etc.) and habitability of the home (any major repairs necessary?). Larger multifamily units are evaluated differently by banks because commercial loans are often used. Commercial loans usually require more money down as well, sometimes 30%. Rental incomes are an important component to a bank's commercial loan evaluation. Basically, the bank will want to see whether the rental incomes and your ownership plan will put you in a position to pay back the loan. That said, a bank is still going to want to see that a borrower on a larger multifamily is also a good credit risk. 

Congratulations on taking steps forward. What are your projected cash flows for the two places? Will the investor be helping with the rehab at all? Does he take care of his section 8 rentals, have you seen them? For option #2 it looks like months 6-12 you'll be paying your investor $1k a month. Is that going to eat up all of your rental income and leave you high and dry when you need to pay the bills? Personally, if the numbers work AND you know/trust your investor I would choose this option since you would gain experience with section 8, foreclosure purchases, rehabs, cash-out refi's, partnerships, etc. Find out of the investor has worked with anyone else like this before and find out how it worked out. Also, please make sure you nail down the "helps obtain tenant" part of this. If he doesn't find tenants for you or finds horrible tenants, do you still owe him money months 6-12? I think you have some options here, just make sure you do your due diligence before partnering with anyone. If your gut instinct gives you pause, take a step back and reevaluate your options. 

@Peter Schuyler I did almost the exact same thing when I began school at CSU in 2004. One year prior to enrolling, I got a CO driver's license, registered to vote, sent mail, etc. etc., to "my" CO address in the hopes of being considered in-state for when I enrolled. At the time I was in the military in CA. I requested in-state tuition when I started school and was denied. I was going to appeal because I had all the paperwork lined up, but was politely told that it wasn't going to work. I decided to let it go. But, my second year there my in-state tuition request went through smoothly and I had no problems from then on. Perhaps my denied request the prior year also added weight to the intent portion of my request the following year. If your daughter is already going to spend her first year in the dorms anyway, why doesn't she count that first year toward the 12 month residency requirement (summer school too?) and she could be considered in-state for the rest of her time there, assuming she gets a CO driver's license, registers to vote, intends to stay, etc? I'm sure you know this, but Colorado residency only requires a domicile in Colorado for 12 continuous months on or prior to the first day of classes of each semester. Below are CSU's proof of residency examples...

• Colorado driver’s license or valid Colorado ID
• Colorado motor vehicle registration
• Permanent, full-time, off-campus employment
• Colorado voter registration
• Change in permanent address on all pertinent records
• Payment of Colorado state income taxes as a Colorado resident
• Withholding of Colorado state taxes from wages
• Ownership of residential property in Colorado

I'm looking for property management company recommendations in the Richmond Hill, GA area. I've head great success before with PM recommendations from BP members. Many thanks in advance! 

Thanks John Semanchuk . Good to hear I'm not crazy for thinking the Charleston area is still doing well. It will be interesting to see what happens when the new housing developments come online. At least for now though, demand is still high and people keep moving there.

They didn't say how much. But, given my prior experiences, registering things in my name is usually a small fee, $6. Can't imagine costs for a day would run more than $10.

What are people's thoughts on Charleston, SC's housing, economic, and population trends (including Dorchester and Berkeley)? My wife and I are thinking of buying a third rental property in the area and want to get others' viewpoints before we start putting all of our eggs in one geographic basket. Are companies still moving operations to the area? Population growth projected to continue? Are housing price increases justified and sustainable? 

We continue to be optimistic based on the info we have. That said, I don't want to cherry pick all the positive info without probing any negative trends people aren't talking about.