All Forum Posts by: Nicole W.

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. 

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

@carlos Paz @Matt Morgan 

Thanks!

@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!

@Leigh Whiting Sorry...1000 a yr/not a mo.

@Leigh Whiting 

I agree with @Evan Polaski's info. 

I use 5.5% vacancy and 1000 mo reserves (repairs/utilities/pest control/appliances), 8% management (I negotiated this with no lease up fees as I have a few with 1 property mgr/otherwise I figure 10%/you must shop for the best person/company & rates), taxes, insurance and interest. I also make sure it cash flows at the highest and lowest rents in the area. I bought a few in Phx metro which work for me. Just figure in these #s. 

I haven't found the 1 or 2% rules helpful as I have found properties in bad weather/hurricane area or in areas where taxes can really jack up with values going up, and they end up not cash flowing at all. In other areas I found I can go below the 1% and it works out just fine due to low fixed costs. It is relative and involves many factors. I had to go to my own little formula and it works for me.

I just purchased a few SFRs in Az and the closings were spread between three Title Companies. All did a great job but one was almost 1/2 the price in closing costs which was First American Title. I see they are in Ohio as well. 

I have 11 rentals and State Farm handles all the policies (300,000 business liability each) in a 1mm Commercial policy (no limit to # of rentals in it). 

I used to use Markel Insurance as they also have a no limit for rentals for their umbrella. They were the most economical when my house was considered in a fire zone and I needed a non conforming type insurance co.

But now my primary home is no longer considered in a fire zone per State Farm, so by bundling my home, my vehicles, a personal umbrella and the commercial umbrella with them, believe it or not they came out the lowest and I did call quite a few others.

I talked to some roofers who advised me to go with State Farm as they are the fastest and best at replacements as well. I have used State Farm for underlying for a little under 20 yrs and they also came out with the lowest quotes. I have had to use them twice in natural catastrophes and had zero problems, fast service with good results.

I do not work for either of these places.

@ Sean Lee

I messaged you all the info.

I am in So Cal. I just invested in central Az and it is cash flowing well. 215,000 is the average house price that I paid in Nov/Dec. 1500-1550 rents for 3bd/2ba. Low insur and taxes. Great weather. Houses are nice. Some with and some without HOAs. Good rental market now.