All Forum Posts by: Rob Bianco

@Scott P. Well the window units are free because the property management company has some spares handy.

The warranty company is a nightmare but they’ve saved me at least $10,000 over the last year. They didnt want to pay to replace the air conditioner so they had a condenser installed which the contractor said wouldn’t work but we did it anyway. Turns out the contractor was right so now they’re going to have no choice but to replace it. All of that back and forth is why its been 5 days so far.

@Thomas S. Based on what you're saying I could just refinance the properties as is; maybe I wouldn't pull out every penny, but even if I did I think I'd still probably have a 6.5% return on the four that I own.

What I'm not understanding is how hoarding cash is killing the cash flow. If anything, I'm bringing in greater cash flow by not having a mortgage to pay? Are you suggesting that by owning more properties with leverage (vs owning less with no leverage) that I have greater value because those homes will appreciate over time and I'll pay down the debt over time?

Frankly, I don't think there's anything I could have done better in regards to the pre-purchase process. Most of the Sellers I have come across will deduct a few bucks here and there if the water heater is old or the roof has some years on it, but they were solid deals. The tenant situation I don't think anyone can really know for sure especially since the Sellers tell you how great they all are. Like I said, I've since turned the properties into cash-flowing investments.

In regards to BRRRR I think it is definitely something I'm into if the right property comes my way. In regards to Refinancing - is that something people do immediately after they have rented it out or do they wait a few months, a year, a few years, etc... ? I haven't been on Bigger Pockets in awhile - so I really forgot about the BRRRR method.

I own 4 properties (3 duplexes / 1 fourplex in B grade neighborhoods) in cash. So far I've been relieved to own them in cash because the first 12-16 months I had to fix/replace/upgrade a lot of things that the previous landlord(s) neglected as well as deal with some bad inherited tenants. I likely would have lost money when all was said and done if I also had a mortgage to pay. Things have since settled and the investments are bringing in nice monthly income.

However, I can't help but get the feeling that while I was blessed to have the cash to own that it utterly kills my ability to buy more investments and there's probably a better way to do this than the way I've done it? I also have cash set aside for rehabbing/flipping which is something I intend to do. 

I'm really just looking for some advice from people who have been down this road that might be able to share their wisdom.

Hi Folks,

I've been a landlord for about a year now and there's always something I'm dealing with that the previous landlord neglected. The A/C unit died (it was 30+ years old. RIP) and while the contractor for the Home Warranty company is saying it needs to be replaced the tenant is pissed because it's been 4-5 days without air conditioning. 

I feel pretty bad about it considering the tenant has small kids and I'm having some window units temporarily placed into the unit. Nonetheless, other than that and apologizing profusely, what can I do? Home Warranty company likely will replace the unit, but it's taking a lot longer and more effort than normal to get it done.

I went ahead and created multiple LLC's for a couple properties I'm buying. My Lawyer said it was wise to have each property in separate LLC's in case of lawsuit or something. My Accountant recommended I look into a Series LLC that would help cut down on paperwork, clutter, and fees, but after reading Biggerpockets it seems rather divided on the topic.

My main concern is whether I'd be protected in the same way with a Series LLC that I would be if I placed each property into separate LLC's?

I'm so close to obtaining 3 properties in my first transaction with my goal to maximize cash flow, but it has been a definite learning curve thus far. My biggest hurdle has been financing; I made the mistake of going with a big bank (because I didn't know any better) and they're digging through all my bank accounts to judge where my down payment is coming from. They will even judge if by using funds from my business checking account if it will be too strenuous on my business. The process has been grueling and I think it's too late to switch to a new lender at this point.

I honestly am considering just buying the best of the properties in cash, going around the bank, taking my cash flow, and over-insuring the property in case of a claim. I'm new to this and I know people say not to buy in cash, but if I can afford to, why not? 

I just feel like I should get something out of this before the seller backs out and next time use leverage with a better lender and game plan now that I've been through the fire.

Okay, so what if I add my spouse to my bank account ( the one with all the money ) and the bank can give me statements with her name on them? Theoretically, Wells Fargo would probably not play ball since I've been really honest about the situation with them, but another lender wouldn't know and I can get my loan?

@Alpesh Parmar
Apparently because it would have to have funds for the payment in the account over 2-3 months, which is time I don't have if I want to close the deal

@Wayne Brooks 
Does that apply to all lenders or just certain ones ? It's my spouse - seems a bit ludicrous especially if I'm on the Title and contractual agreements