All Forum Posts by: Phil Moore

The answer to your question is heavily dependent on the terms of your seller finance deal. If you've structured the deal in such a way that allows you to have a good amount of equity in the property within a reasonable timeframe, then a good option may be conventional products like the FHA loan. If, however, you've got a high interest rate or long amortization or both, then your options are more limited.

The cool thing about creative finance strategies is that they can be tailored to meet your needs now and again in the future should your situation change.

There are seasoning requirements for cash out refinances. What I mean is: yes, you can refinance your loan as many times you want as long as it fits your budget and your investment goals, but there is typically a requirement of time in between refinances. 

A HELOC is a revolving line of credit. As long as you pay it off, you can keep going back and using the money unlike a refinance that is a one-time situation. I don't know your personal financial situation, so it would make sense to discuss with a loan officer or financial advisor about your most important next steps.

I've self-managed a rent by the room situation in FL. It takes a bit of work upfront, but it is actually a good set-up if you want to be a more hands-on investor. You have a ton of say about what goes on in the property that allows you to keep a close eye on the home and those in it. We have, however, found that renting out the entire place fully furnished is much less hassle.

I'm not convinced that sales price and the age of the home go hand-in-hand. You can have a lower sales price home built in 2005 that could give you more problems than a more expensive home built in the late 1800's. So to answer your question, I don't think that a low enough sales price will make any of your concerns go away for any age house. 

I've seen houses built in the late 1800's that are built better and look more modern than houses built in the 2000's. No house is too old for a rental property investment. It simply depends on how much time, energy, and commitment you have to invest. If one of those parts of the triangle is missing, then you're in for more headache than it is worth. 

 If you find that is the case, then your most important next step is likely to identify the market that you feel has room to grow and has cash flowing opportunities for you. 

I would caution you, however, that making the decision purely based cash flow is not always the best course of action. Cash flow is nice to have, but it doesn’t always paint the entire picture. 

If your goal is asset protection, I'd also do some research into trusts. It is possible to structure the agreement in such a way that allows for both anonymity and asset protection where a single LLC is beneficiary to multiple trusts or vice versa.

The answer to that boils down to whether you like passive income or active investing. With the BRRRR strategy, you're reaping the the benefits of equity, appreciation, and cash flow. Fix and flip is a job and you need to constantly be on the hunt for the next deal.

On the flip side, if you're cash flowing only a couple hundred on a BRRRR it's a no for me dawg. Ideally you get the best of both worlds.

The answer to your question is hardly straightforward and contingent upon a number of variables, most of which boil down to your personal financial goals and overall view on the market in years to come.

My first question to you would be: did you purchase this property with an exit strategy in mind? If so, has this investment reached the point from your initial strategy or are you simply shooting off the hip in light of your new tax situation?  

I would then ask have you identified where you want to put your money should you decide to exit? You may find that even if you exit, your tax implications for doing so put you in a worse position than if you stayed put. I’m not a financial advisor or tax specialist, so these are some questions that you’ll have to ask those folks. 

 I’m curious as to what made you take the route of telling them that you’re the property manager and not the owner. I see your point that it’s easier to pass blame to an imaginary third party, but I’m not convinced that you need to shy away from running your business effectively and raising rents. That’s the name of the game. If you’ve done your due diligence, don’t be afraid to let them know that you’re the man behind the green curtain.