All Forum Posts by: Ryan Rominger

All solid markets with strong rental demand! Indy offers affordable entry points and steady appreciation, especially in growing suburbs. Chattanooga has a mix of cash flow and appreciation potential, plus a growing job market. Raleigh’s economy is booming, but prices are higher—great for long-term holds. It all really depends on your investing goal - at least, your topmost priority. Are you looking to prioritize cash flow, appreciation, or both? 

Right now, we’re focusing on strategic refinancing, locking in fixed rates where possible, and structuring deals with seller financing or rate buydowns to keep cash flow strong. Also keeping an eye on value-add opportunities where we can force appreciation to offset higher borrowing costs.

Pros:

• Easier Qualification: Sellers may have more flexible criteria than traditional lenders.​

• Flexible Terms: You can negotiate down payments, interest rates, and repayment schedules.​

• Lower Closing Costs: Bypassing traditional lenders can reduce fees.​

Cons:

• Higher Interest Rates: Sellers might charge more to offset their risk.​

• Shorter Repayment Terms: Loans may have shorter durations, leading to larger monthly payments or balloon payments.​

• Due-on-Sale Clause: If the seller's mortgage has this clause, the lender could demand full repayment upon sale.​

Considerations:

• Legal Review: Have a real estate attorney examine the contract to ensure clarity on all terms.​

• Property Title: Ensure the title is clear of liens and encumbrances.​

• Down Payment: Be prepared for a substantial upfront payment, as sellers often require this to mitigate their risk.​

• Default Consequences: Understand the repercussions if you can't meet the payment terms.

Refinancing your FHA loan into a conventional loan to free up your FHA eligibility for a second property can work, but there are trade-offs. Yes, today's higher interest rates mean your new conventional loan will likely have a higher rate than your current 3.5%, so you'd need to run the numbers to see if it's worth it.

The upside is that using FHA again lets you put as little as 3.5% down on your next primary residence, keeping more cash for future investments. The downside is that refinancing resets your loan terms and could come with closing costs.

If you have strong credit and enough equity, you might also consider a HELOC or home equity loan instead of refinancing.

I’d definitely pause on signing with the agent until you explore your tenant’s offer. If he qualifies, a direct sale could save you commission and simplify the process.

If you still want a realtor’s help (which makes sense given Maryland’s laws), you could negotiate a reduced commission for handling paperwork and compliance rather than full representation. Some agents offer limited-service agreements for this.

As for pricing, if comps support $235K and inventory is tight, you’re right to push for top dollar. Listing at $215K just because another unit is priced there isn’t necessarily the best move.

Have you asked your tenant if he’s pre-approved yet? That’ll give you a better sense of how real his offer is.

If nothing is damaged beyond normal wear and tear, your best leverage is financial. Raising the rent closer to market rate ($300 instead of $100-$150) could either incentivize better care or naturally push them out if they don’t want to pay more.

If they stay, you could introduce cleaning inspections in the lease renewal terms or even offer a professional cleaning service quarterly (baked into rent). If the condition is really bad, terminating the lease and re-renting at full market might be worth the upfront cost of turnover.

Tapping into your Hawaii home's equity via a HELOC or home equity loan could be a solid way to fund your BRRRR in Charlotte, especially since it avoids higher-interest hard money loans. A HELOC offers flexibility with interest-only payments initially, while a home equity loan locks in a fixed rate.

Drawbacks? You're leveraging an existing asset, meaning added risk if values dip or rents slow. Also, lenders may have stricter terms for out-of-state investment properties. Make sure the numbers still work with your BRRRR strategy, factoring in higher rates and potential delays in refinancing.

The first step you might want to reconsider is speaking to lenders to see the terms they might offer.

You’re in a tough spot, and it sounds like this contractor is dodging responsibility. Since he was the contractor of record with the lender and there was a clear agreement (even if not fully signed), you may have legal standing based on breach of verbal and implied contract—especially given the documented communication.

You could:

1. Send a Formal Demand Letter – Outline the timeline, his obligations, and the financial damages caused by his delay. Sometimes, this alone pushes contractors to act.

2. Consult a Local Attorney – A real estate or construction attorney can advise on specific breach-of-contract claims and whether legal action is viable.

3. Check Licensing Boards – If he’s licensed, you may be able to file a complaint with the state contractor board, which could pressure him to respond.

Since time is money with a hard money loan, I’d also start looking for backup options just in case. Maybe you can also reach out to the lender about the situation first.

You're in a solid position with a low mortgage rate and a cash-flowing ADU, but I get why scaling feels tricky right now. Given your constraints, I'd explore two main options:

1. House Hack a Duplex or Triplex – Since rental income might be counted toward your DTI, buying a multi-unit where you live in one unit and rent out the others could help offset costs while allowing you to scale.

2. Lease Stability & DSCR Loan – If you get leases in place for your current home and ADU, you might qualify for a DSCR (Debt Service Coverage Ratio) loan for your next property. These loans focus on rental income rather than personal income.

Selling isn't ideal with your 3% rate, and cash-out refis are expensive right now, so I'd try to work within what lenders will allow using rental income. If rates drop, you can always refi the new property later.

I'd say keep an eye on medium-term rentals. They hit that sweet spot between short-term turnovers and long-term leases, catering to professionals or those in transition for about 1-6 months. It’s been working well in several markets, but of course, it pays to know your local vibe before diving in.