All Forum Posts by: Richard Schubert

Oh, forgot to mention, this was prior to self rent rules. 

Quote from @Nicholas L.:

@Allen L.

i hear you on the hassle of conventional loans, my portfolio is not as large as yours but I applied for a HELOC last year and it was a huge pain. the loan officer was really helpful and responsive, it was just a lot of paperwork to work through.

i like @Jay Hinrichs idea of just paying cash and refinancing. 

 Can your llc buy it with a Dscr loan and rent it to yourself? Trick a friend of mine did many many years ago. Wrote off the expenses, depreciation, etc 

As the title says, curious how long others are seeing in their area to stabilize a SFR in a C neighborhood. A smaller SFR I purchased a year and a half ago took about 12 months to stabilize. It already had a tenant when purchased. It had some deferred maintenance and I put a new roof on and fixed a few things. The tenant used an online maintenance request system to request a handful of maintenance issues for the first 6 to 8 months. Once everything maintenance wise settled down, the house is now pretty much on autopilot and I don't really ever hear anything from the tenants. This is the point that in my mind the house has reached a balance point and is stable. This took about 8 months. It's now 18 months later and still have the same tenant.

Another house I recently purchased for cash is doing the same thing. I bought it with a tenant, had some deferred maintenance, and the tenant had been reporting maintenance issues as they come up. It has been 4 months and I still am fixing something each month, but slowly I can see the issues subside. I am thinking about 8 months on this house also to balance out and stabilize. At 12 to 18 months of aging, I may look to cash out on this one.

What are others seeing??

Quote from @Bill B.:

Two notes:

1) The solar company may give you the best interest rate.

2) If the power goes out, you still don’t have power if you have solar. 

With a battery backup you can certainly have power. Of course, the cost is high.

Quote from @Rodolfo Chicata:

Investment Info:

Single-family residence other investment.

Purchase price: $342,000

I do Airbnb on it, and medium terms.

What made you interested in investing in this type of deal?

increase equity

How did you find this deal and how did you negotiate it?

I did an analysis of the location and property.

How did you finance this deal?

mortgage

How did you add value to the deal?

apreacial

What was the outcome?

small profit

Lessons learned? Challenges?

Horrible tenants increase cautiousness and interaction with insurance

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Robert Lane, best real estate agent so far I Know

Keep or sell comes down to performance of the investment. If your making net money worth the capital invested then keep. The beauty of an Airbnb is you can offer it for sale while still renting it out. It’s always ready to show.

Quote from @Dennis Knapp:

so I am driving around looking at not-so-nice homes and looking up to see if mortgages are left on the property because I'm looking for seller financing possibilities. the problem is the software i am using does not give me the seller's phone number. Does anyone know any software that provides this information? I really appreciate any help you can provide.

I got nothing on the phone numbers, but I would say that I would be a little upset if I got phone calls asking to sell my house. A nice hand written letter with your contact info might be more appreciated.

Quote from @Victoria Redlin:

What is a good source for a HELOAN or HELOC in December 2024?

My client is looking for one to consolidate some current debt and to finance solar. In California SCE is always turning off the power. 

They can get a loan from the solar company, but would prefer a HELOAN or HELOC to cover the solar and consolidate. They have equity and a great first interest rate.

Thank you in advance for suggestions. 

I usually work with my local credit union where I have developed a relationship over the years. I have also had several loans with Newrez. Pretty easy to work with. For me, a Heloc would be my choice over a loan. The Heloc you can use over and over again.

Quote from @Addy Chupa:

That deal seems solid for Cleveland, especially since it meets the 1% rule and has an 8.73% cash-on-cash return. A monthly net cash flow of $277 is positive and reasonable for the area, but you might want to compare it to similar duplexes to see if there are better returns available. Make sure you're comfortable with the cap rates and the property’s condition before moving forward!

The numbers only look like they work because the calculation is only as accurate as the numbers we plug in. 954.00 for 12 months worth of maintenance on a duplex
in Cleveland? Who is mowing the grass? Who is plowing the snow? What utilities does the landlord pay? Your 954 is gone on the grass and snow removal alone. 1% rule means nothing, numbers either work or they don’t . 

Might be a one and done post. I offered to look at the property and heard nothing. Might be why it does not sell. Communication is key

In the last 2 months, I have been getting a lot of “I want to buy your house for Cash!” letters. I must have made my way onto a list somehow. Never had these before until now. The letters and post cards are coming to my personal address but they don’t mention the property in question. The last two investment properties I have purchased was for cash, so I must have made the absentee high equity owner list. Well when life puts lemons in your mailbox, make lemonade with them. I plan on saving all the letters and calling them to be added to their buyers list. So, kinda a free marketing plan for me, keep the letters coming please!