All Forum Posts by: Miles Stanley

Thanks @Katie Greenman

Have you used them yourself?  Recommend any of them in particular?

Hi all,

I have a house I need to rehab in San Antonio (paint/flooring, cabinets, bathrooms, kitchen, etc) and I'm searching for a couple good contractor recommendations in the area.

Thanks!

So I was talking to my credit union and I explained that I paid all cash for a 2nd/rental house and that after I finished fixing it up, I wanted to do a cash out refinance to get my capital back out. They said they'd be happy to do it, but they said plainly that since there is no existing mortgage, I cannot do a refinance bc there is nothing to refinance! "Fair point" I thought. They said instead that I would have to do a home equity loan...and this applied whether I lived there or rented it out. To top it off, I can only have 1 home equity loan product at a time, so it seems I cannot do more than one deal of my BRRRR strategy at a time either.

Has anyone else run into this?  I don't ind doing a HEL, but i also want to keep blowing and going.

Thoughts?

Thanks,

@Joseph Crawford

i made it clear that the equity products we be on 2 different properties and she was insistent that it wasn't possible.  Maybe THEY just won't do it, I'll need to speak to other lenders apparently.

So I have a HELOC on my primary home. We recently bought a house for cash and I plan to fix it and move into it and do a home equity loan to tap into my equity. i plan to keep my old home (the one with the HELOC) as a rental. I have asked the lender I have the HELOC with if this is OK and she said yes, but I would need to close my HELOC bc I can't have more than one home equity product at a time.

Is this the end-all-be-all or is it possible to have multiple?

So I hear about a lot of people using OPM, but I never really see details on just HOW the arrangement is created?  Does a document or agreement get signed and recorded?  Do they just hand over the money with a wink and a hand shake and trust you?

On method i learned about here in Tejas is to have the private investor hold the note with a deed of trust against the property and the title company sets it all up. 

Are there other ways?  For example, is there a way to write up a contract as a cash deal using OPM while still having the arrangement set up a a loan on the side?

Thanks,

@Cory Iannacone

question, on the OPM arrangements, how did you set those up?  i have been wanting to use OPM lately but am unsure about how to actually structure the arrangement?  Do you have any kind of agreement or do you record a note or something?  Or do they just give you the money and its a wink-and-a-handshake kind of thing lol?

Great post!

Thanks

Anyone have a good electrician they would be willing to recommend for a rehab I'm working on in San Antonio, TX?  I need a 2nd opinion on some electrical work that I need done.

Thank you

@John Teachout 
@Joe Splitrock

My wife was with the electrician when he was there, but he made some comment to the effect of "you can only have 1 GFCI per 'loop'".  I've seen the advice of putting GFCI's everywhere you want more protection, but this seems to go against what the electrician is saying.

@Brock Thomas @Kenneth Garrett

He says he works with a lot of flippers that never like what he has to say lol.  I can see why, who wants that news!?

The other thing that sucks is that an electrical rewire would be the ONLY reason I would need to tear into the walls, they are in great shape otherwise except for some needed drywall patching.  I did some research and it appears having multiple GFCI's on one circuit can cause them to trip each other in certain circumstances which can eventually wear out the internal circuitry.  Research also says having ONE GFCI at the most upstream point in the circuit will protect all downstream outlets...which would have to be 2-prong per code (and which doesn't solve the 3-prong need issue for certain devices).  

Hmmm...tough one.  Considering all advice, my gut's telling me to rewire, but I will definitely be speaking again with this electrician about the details and will be seeking 1-2 more opinions.

Thanks all!

@Whitney Hutten @Mindy Jensen

@Michael Jackman @Erik W. @Darius Ogloza @Andrew B.

Thanks all! 

Like I said in the post, returns aren't necessarily everything and they should be balanced with liability AND future resale as Mindy suggests.  Liability is definitely a concern since it'll be rented.  I'd be concerned if there's an injury due to electrical and they discover that the house is faulty AND that we knew about it as the owner...seems like a bad time to me.

True, since I'll be BRRRR-ing it, resale isn't as critical now, I should have said appraisal. But still, i may decide to sell it at some point and this monster will rear it's head at that time.

I'm leaning toward doing it, but still lots to consider.  Thanks!