All Forum Posts by: William Murrell

Capital gain is an entirely different subject since you're not selling it.  You're just refinancing.  So it doesn't help you "avoid" them per se, you just don't have to deal with them today.  

With an equity spread that large, you're in a good position with options. You can go all the way up to your max LTV and get a bunch more money out, or you can refinance a smaller portion and enjoy the larger cashflow each month. That decision depends on what your goals are. Good luck!

If it's a tenant that is paying consistently and not causing other issues, I'd say eat it this time and explain that you're being nice this time but might not always be.  Good tenants can be tough to find and I am a firm believer that you should keep them when you find them.

Listen to the ones with Sharon Vornholt (sp?) and Michael Quarles.  They have some pretty interesting info.  But like Elbert said, they're all really good.

Check your lease.  Doesn't it have some provision for eviction in late payment scenarios?  If so, enforce them.  

Look for J Scott's stuff on here.  Check in the Biggerpockets file place.  He has spreadsheets, outlines, everything.  If he doesn't have it, you probably don't need it.  Also, his books are invaluable.  I have no connection to him, but I do recommend his books all the time.  

You really need to know not only what needs to be done, but what needs to be done when.  You don't want to have one trade coming in and ripping out the previous contractor's work to access what they need.

I don't use Skip Trace very often, but I just use Groundworks Research in Texas and they were fast, affordable, and did a good job.  

Happy to help.  Wash, rinse, repeat.  Good luck out there.

Yup. There's no down because you paid cash.  The 25% stays in the house like a down, but you don't have a come up with additional funds.

All hope is not lost. You can still refinance out, just not as a HELOC. You can get a heloc on your home you live in and then whenever the mood strikes, you can advance on the line. You could buy a car, buy another house, do whatever you want. And you pay it back per the terms of the line of credit. It's like a giant credit card kinda.

But when you get done with this house and you want your capital back, you can still get a refinance to get your money out. It will just be in whatever type mortgage you want like a 15 yr or 30 yr fixed or whatever you choose. There are %LTV requirements, but you will get most if not all of your money back depending on what it appraises for. There are usually seasoning requirements where they make you hold it for a fixed time before you do it, but I just had a bank waive that for one of mine because I paid cash for the house when I purchased it.

Take a deep breath!  You're going to be fine!

Go ahead and get a CPA. They cost more, but you get more. You want to account for expenses associated with the rental (HOA fees, mgmt fees, etc.) and you also want to take advantage of depreciation. Your CPA will help guide you through that. If they don't know how to do that, get another CPA. It's worth the money!