All Forum Posts by: Percy Matsunaga

@Ruth Galgano

1st of all my deepest conference to you and the family. 

I guess I would start by finding out who is on the title or Deed of the property. 

If it’s your Husband, then I would find out if there was a lease in place and what does that lease say as far as time frame of staying in the property and rent payment. 

Probably need to decide on where the brother in-law is going to live, or you can give 30 day notice to vacate. 

Then you can start your rehab process and get it tenant ready. 

@Donna Xu

Just think of Heloc like a line of credit backed by the property which you get it from. 

If HOME “A” has a value of $100K and you only owe $20K, the bank might lender you another $50K in a line of credit. 
You can use up to $50 K of that line. 

Or, same HOME “A” has a value of $100K and you do a cask out for $50K, then the following month your monthly mortgage will go up to $ X amount. 

Hope this help better explain both. 

@Angel Ramirez

Can you give us the specifics? Maybe someone on BP would like to get more info. 

Location or market of the property? 
price range of the property? 
tenant occupied or not? 

@ Donna 

I think the Heloc depends on the bank. My bank allows me to have an open line of credit on my Heloc and I can borrow and repay for 10 years. 
May the end of 10 years I can reapply for the same loan or extend into an actual loan and principal pay down. 

Cash out is good too, if you know you want that fixed amount to pay back monthly. 

@ AG 

Actually this process is a little more complicated that how is states. 

I’d like to go into details on part 3 Deferment. Depending on the Bank you are dealing with just asking to defer is not enough. 
there is an application process and you need to qualify to get onto the deferment process. 
once approve then the amount is put on a separate loan and when you sell or get to the end of the loan it needs to be paid off. 
DO NOT get mislead by the banks, get as much details as possible on how the loan needs to be paid back. 
Remember the bank wants their money so they are not that willing to put your loan at the end of the mortgage. 

@Naveen Rondla

I would go for the Heloc because of the flexibility of taking the money out and you can repay it and then borrow it again with closing costs. 

@Bob Romano

Here is my thought, using someone else’s Home Inspection could potentially save a few $$, but when buying a property you really want to see what the Inspector sees. This way you can make an educated decision on the property that may cost $$ in repairs that may have been an oversight in the previous inspections. 

The property is an Investment so I would treat it as such. Due diligence is key. 

@Rich Kniss

I was just looking at your signature and wanted to ask when you formed your LLC did you decide on the state you lived in? Or where your property is located?
Also, which state would give you the best asset protection? 

I'm not concerned with any tax advantages for the LLC yet. What are your thoughts?

@Afrothiti Manolis

I’d be interested in how much the electrician will charge you for that. 

You could require a 1 year lease for the M2M tenant and in that lease have them pay an extra $$ for the utilities and charge them fair market rent. This will lock the rental for a year. 

@ Dylan 

Try and reach out to some loan providers and see what kind of interest rate they can get you. 
Im thinking 3% is about where you can get the rate to be and if you refinanced I think you will be in a much better position. 
I would not sell just yet. 
you got equity in the property, so if you sold you would pay capital gains tax on the profit. 
instead maybe you can roll that over into a 1031 exchange and not have to pay that capital gains tax.