All Forum Posts by: Nancy Stark

 Finding out that within the "Historic Core" zone, special use application is available to fill out and must be submitted for approval. I'll keep posting as we progress. 7 day and greater stays allowed based on our current conversations.

We have a beautiful 8 unit property that we've rehabbed and currently offer 3 units for short term rental on the second floor. It is not our primary. Recently, we were approached by a city zoning enforcement officer who informed us we were in violation of zoning laws and that someone from the Historic District would be contacting us. They did, 4 days later in person, and told us that we were in violation; that short term rentals (less than 7 days) were not an allowable use for our zoning designation, CRO (commercial, residential, office) and that we would be receiving a certified letter to cease and desist. Each day we were out of compliance we'd incur a fine of $250.00. Good times! Scrap that set of numbers! Actually, we will be drilling down on this to see what legal options are available. Strangely enough there are probably close to 100 active local Airbnbs. Wonder what's going on with them?

Hello. I am BRRRRing a property. I purchased the property (for $100k cash) in my name and then quit to my LLC at refinance but was charged $1100 for the deed and doc stamps. Should I expect to pay this much every time I quit to an LLC? And should I have bought the property in the LLC's name instead of my own name?

Thank you in advance.

@Anna Laud Yes that helps. Calling my insurance is a good point. Thank you. I didn't think about that. I appreciate your input!!

I am a new RE investor (9 months now) and have acquired 4 properties. I made one LLC. My first two properties are rented and I am in the process of renting the 3rd. All have been bought in my name (not LLC). I do not want the tenants to know I am the property owner (I am acting as a property manager). For the first property's lease, I used my LLC as the landlord and am in the process of putting that property into my LLC.

My question is: For this current property lease, do I sign MY name as landlord (the tenants already know I am the owner of this one), or do I write in the same LLC as my other properties? My concern going forward is I don't want my name on the leases, but I haven't decided whether to get separate LLCs for each property (or put several properties in one LLC) or put each property in land trusts .

Thank you in advance for a quick response (the tenants are waiting on the lease now).

Nancy

I am new to real estate investing. I purchased my first SFH this past August 2020. I did a cash out refi on my home and purchased 3 properties. Two houses are all cash and one is a traditional 20% down 30 year loan. I am taking a hiatus from my job in medicine so I have not been able to refinance the other two yet. Here is my question:

I may have an opportunity to purchase a portfolio of 7 SFHs. Should I pay cash for the portfolio and then one-by-one do cash-out refi's on them or try for a commercial loan to purchase the properties up front? 

Also, is it possible to qualify for a loan based on net worth rather than from a job? I saved a majority of my income and paid off all my debt over the years and now I feel like I have to go back to work just to get these properties into mortgages. How do I avoid being forced to work?

Thank you in advance.

I just purchased my first two SFH in a B-C class area. One is a BRRRR (currently in rehab), other traditional (ready to rent). Would you have the new tenant sign a 12 month lease right now, or start off month-to-month?

I live in Florida:

"If a tenant does not pay rent in Florida, then a landlord can evict the tenant from the rental unit. A tenant will have three days after receiving the eviction notice to either pay the rent or leave the property"

If you always have carrying cost at 2.75% how do you calculate deals?

For example, let's say you have $200K cash-out from refi at 2.75%, and you BRRRR at property, how do you calculate the ROI?

ie,

      $200K at 2.75% for 30 yrs = $458/mo carrying cost

      $130K total cost of property (including rehab) 

$150k ARV

$105K LTV refi @ 4.5% - assuming 70% LTV

                 = $25K left in deal (paying 2.75% interest) = ~$57/mo carrying cost

Do I add the $57/mo into my NOI to determine if it's a good ROI?

And how should I calculate the $458/mo that I will be continuing to pay? I plan on building a BRRRR portfolio but now I have trouble analyzing these properties.

@Chris Lounsbury Thank you. The explanation of your experience is very helpful to me. I appreciate you telling me about that.

@Kenneth Garrett

@Todd Pultz

Interesting. As a primary care PA, I am dealing with covid on a daily basis (here in FL), and we in healthcare are concerned about things getting worse over the next six months (due to the upcoming cold and flu season). So coupling that with the possibility of another shutdown, I wonder if lenders will tighten EVEN MORE than what we have already seen. I appreciate your thoughts and feedback. I will start meeting lenders now AND plan for various exit strategies. Thanks for the advice!