All Forum Posts by: Nicholas W.

My understanding is that the majority of HELOC's are interest only so that would help. I think your plan works and is the perfect use of a HELOC in my opinion. As long as you're sure that you won't have any trouble refinancing at the amount you're looking for it sounds like a great plan to me.

This is going to be largely dependent on your long term strategy. If you said you were looking to buy and hold it wouldn't make sense to pursue hard money unless you had a clear cut plan to refinance out into long term debt in a fairly short period. Personally I say the same with a HELOC as they typically are adjustable and the term is typically shorter (5-7 years.) This makes them risky for a long term hold since if the value of your home drops you may not be able to renew the HELOC at the end of the term and will be put in a tough position. If you're flipping either one of those is a perfectly fine source of funds, exhausting a HELOC first given the lower interest rate. For long term holds I would say a home equity loan is your best bet as a fixed rate and term can usually be obtained providing peace of mind and allowing you to predict your future expenses more accurately. That's my take on it.

Commercial square footage rates are usually quoted annually.

Can you find an HVAC installer that offers 90 days or maybe 6 month same as cash financing? That might take care of the largest of your expenses without costing you anything.

I don't have business cards but I do have a rental property. Tenants get my google voice number. All other contacts get my cell number. One reason is if I'm out of town I can set the google voice number to ring someone else who would actually be able to handle a problem. That being said if my mortgage lender or agent calls there is no reason that call needs to go to anyone other than me. Of course the google voice number also adds a layer of protection from Tenants which I prefer.

Although I have no experience with this, here is what I would think. Only do it if the applicant can afford the rent without the insurance company. Make it clear that they are signing the lease and if the insurance company doesn't come through for any reason that they are still fully responsible for the rent payment. As for a premium, ask what ever you feel is necessary to make up for such a short term tenant. Maybe an extra 20-25% to cover the month of vacancy that will potentially result when their lease ends. I would treat them like any other applicants, where the check comes from should play no part in your decision.

Go to a different bank. That shouldn't be a problem.

Linked below is the form that most lenders reference when qualifying a self employed person for conventional financing. Basically they will average the past two years and divide it by 12 then multiply it by their DTI limit. If you show little to no income you will run into issues.

To put it simply you ignore your AGI on your 1040 and you reference your schedule C. Take your net profit (or loss) and then add back in any depreciation and amortization as well as a few other things but these are typically the most substantial deductions. If the reason you're showing lower adjusted gross income this past year is because you have a significant depreciation or amortization you shouldn't have a problem.

Fannie Mae Form 1084

Personally I have no interest in an oil burning furnace, natural gas is just so much easier, you never have to worry about filling it. As far as I know it costs less to operate a natural gas furnace than an oil burning one making it a no brainier in my mind. They are also much more common, at least in my area making parts more readily available.

I also manage my property with Quickbooks as I am accustom to it from an unrelated business so it comes naturally. I prefer to have all the income and expenses tracked to the penny and my accountant appreciates it as well come tax time (lower tax prep bill). 

When I last filled my unit I used Cozy.co for the application process and it was very easy. Since they are paying for it I gave applicants the option of using smartmove for the credit and background check as cozy's check is more expensive but some still did it through cozy because it was seamless when filling out the application.