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All Forum Posts by: Nicole W.

Nicole W. has started 3 posts and replied 98 times.

Post: Is it better to invest long distance for price to rent ratio?

Nicole W.Posted
  • Rental Property Investor
  • L.A. Ca
  • Posts 100
  • Votes 42

I would. You just need to ensure you have a great property mgr and to ensure all your reserves are there above a cash flow for you.

Post: Recession proof leverage?

Nicole W.Posted
  • Rental Property Investor
  • L.A. Ca
  • Posts 100
  • Votes 42

@Joe LeGolvan

I believe one should do what one feels most comfortable with and that makes sense to one.

Earliest on we bought an apt building leveraged 100% (borrowed from a family member). All the basics were there with a few tenants but it needed work. I worked on it while my husband worked a job. We just used the rents we made to fix the next thing etc. We didn't do major rehabs...just kept fixing the units as they were vacated one by one and otherwise maintaining it. While I worked, my husband took over doing this and maintaining it and our other properties.

Next we bought a few SFRs with 95% leveraging. At that point I had a good paying job so it was helpful taxwise and if money needed to be put into them or had vacancies, I was able to compensate for that between the cash flow and my own income. Our CPA always told us we paid the lowest taxes of any of his customers. We had some good and bad happen with those houses. Just prior to 2008 the insur and taxes went way up (due to values escalating & bad weather) then the market crashed and rents went way down. I was too leveraged and had to let some go. I have 3 of those left which cash flow some and they are getting paid by tenants but its a long haul. About 8 yrs ago, we decided to follow John Camuto's program and just worked hard to pay off all debt and did except for those 3 original rentals. We decided to just leave those as we have paid down enough of the mortgage interest that they are essentially lower % than the current rates. 

2 yrs ago something major changed at my job and it was no longer aligned with my purposes. I decided I wanted to do some training I have always wanted so we decided to just be economical and live off the cash flow we had coming in. We were able to do this as had absolutely no debts left besides those 2 houses. We had paid everything else off incl the apt and our house. Due to this I was able to just leave a great paying job and do something I just wanted to do. 

When Covid hit, we had no problems at all as we had already set ourselves up to be viable. During this time, I couldn't continue with my training so did some researching and decided to 1031 exchange the apt to something newer. We just wrapped that up and now our income doubled through this. These new ones are all paid off. We know we could've bought a ton more and leveraged a bunch with low interest but we didn't want to do that. We want to just be free to do other things we have wanted to do. 

So, that was our decision and we had others tell us how we could be making much more in the future. We looked at a lot of different angles on it and at this point in our life this works for us. Roll back the time 20 yrs and yes, I would've gotten more probably. 

It took us a longer time than you probably want to take but there is some info for you. I will say when we decided to pay off all debt, we really felt liberated and our finances got a lot better but I honestly that was the right time for us to do that. If I had to do all over again I would have bought the apt as I did. I would've been way more cautious over the amount of houses I bought all at once at 95% and where I bought them. I would've still waited to pay off our primary residence until after these were all making good money then paid it down as I did. I would've figured out how to fully rehab the apt sooner on and had it making more than it did. 

I hope this helps.


  

Post: Outskirts of Phoenix Metro

Nicole W.Posted
  • Rental Property Investor
  • L.A. Ca
  • Posts 100
  • Votes 42

@Danae Aballi

Hi, I recently purchased one in Coolidge and it rented fast. The prices have recently been going up but so are the rents. There are plenty of applicants. I went and looked and picked the subdivisions I liked and purchased within that area.

Post: Ohio LLC, living in CA

Nicole W.Posted
  • Rental Property Investor
  • L.A. Ca
  • Posts 100
  • Votes 42

Tom of Caldwell Law in Calabasis is a lawyer I use in Ca if you need someone. 

Post: Setting up Living trust in Los Angeles

Nicole W.Posted
  • Rental Property Investor
  • L.A. Ca
  • Posts 100
  • Votes 42

Tom at Caldwell Law in Calabasis, Ca. He can help with living trusts, LLCs, and real estate law.

Post: Business Address for my LLC

Nicole W.Posted
  • Rental Property Investor
  • L.A. Ca
  • Posts 100
  • Votes 42

I ended up talking to my lawyer on it.

My out of state LLC's address in that state is using the registered agent's (my property mgr) for any complaints or legal issues that are connected with the registered agent function.

Otherwise he said I can just use my regular address for all else.

I would advise checking with your lawyer to see what is best for you.

Post: HELOC for Investment Properties

Nicole W.Posted
  • Rental Property Investor
  • L.A. Ca
  • Posts 100
  • Votes 42

I called Pinnacle and American Interstate. They don't do HELOCs but will do lines of credits agains a rental. Pinnacle will do a yr long one or you can get a commercial loan with longer terms. Unfortunatley American Interstate has only 2 branches and work only with those in NE. Pinnacle will do loans for anyone in any state with a Pinnacle bank. There are none in Az, NC or Fl. 

Post: HELOC for Investment Properties

Nicole W.Posted
  • Rental Property Investor
  • L.A. Ca
  • Posts 100
  • Votes 42

I talked with First Citizens Bank and they only do HELOCs on primary or second homes. They won't for any investment properties. 

Post: HELOC for Investment Properties

Nicole W.Posted
  • Rental Property Investor
  • L.A. Ca
  • Posts 100
  • Votes 42

@carlos Paz @Matt Morgan 

Thanks!

Post: HELOC for Investment Properties

Nicole W.Posted
  • Rental Property Investor
  • L.A. Ca
  • Posts 100
  • Votes 42

@Matt Morgan, @Owen Dashner 

Do you know if your bank will do out of state HELOCs on rentals? I have tried everywhere as well for my rentals in Az, Fl and NC and couldn't find any. Did this occur recently or before Covid19? If during/after Covid19 what rates do you get on the HELOC if you don't mind me asking. Thanks!