All Forum Posts by: Ryan Detig

@Joe Einbinder  Hey Joe, Welcome. 

If you are living in the condo and have decent income and ok debt to income ratio I would get a conventional loan on a rental property and leave the condo alone. After you close on the new rental property and have a tenant in, then I would do a heloc on the condo and use the heloc to by a house and BRRRR it. That way when your done, you have the condo, 2 rentals, and two conventional loans and still have your heloc available for the future. One con of this option is it reduces the buy it fast option you could have if you did the heloc first. The heloc could open up quick close (cheaper) options that might get you a better deal. All that really depends on your market.

I am not sure if your loan officer would get a better payday but a safe bet is that if they do not have investments themselves I would steer clear of their advice until talking to others with investment experience.  

Welcome.  Listen to the podcasts and read read read.  Also don't wait to long after initial education to buy a low risk property to get started.  Nothing better than using education to limit your risk so you can start your real education (actually owning).  Again Welcome.

@Lou Vigil  Darryl Ford is a great contractor.  I have used him for 4 flips.  Does a great job and is an honest man.  I don't have anyone I recommend regarding tree trimming.  But if you find someone you like please post it here so we can use them.  

Good morning BP.  I currently have 34 units (split between 4 buildings) under contract in Kingston TN.  I am looking for any recommendations for inspectors that are familiar and experienced with smaller multi-family units.  

Knoxville Tn, Maryville TN, Inspector, Appraiser, Multifamily,

@Logan Allec  @Stefan Stankovic I like your idea of Air BnB to compare.  Obviously I don't know the entire situation but it seems like she "wants" to use your property for a specific reason.  That leads me to think that the price would be higher than AirBnB pricing.  Assuming you don't know this person from Adam I would probably make her give you a price first and start negotiations from there.  Use 1.4 to 1.8 times AirBnB pricing (for example) as a check and balance to whatever she offers you.  Good luck.

@John Pauler  I am not a CPA.  I would talk to one of those guys.  Did you ever own the property, or was this just a personal loan?

@Nick Arenaso  I personally would not worry about the cabinets being painted assuming it does not look horrible.  On the other hand if it looks horrible the buyers will notice it.  Either way I would not bring that up.   Regarding number 2, I have two options.  Point it out and don't worry about it (there is no way small damage from a previous leak is a deal breaker), or fix it ahead of time so you can have piece of mind.  Trying to hid it is not a good option.  

@Caleb Gray Just to clarify I am not a CPA. Couple of questions I have regarding this post. Do you own the property personally or is it in an LLC? Is there an actual separate business account with its own tax ID or is it just a separate account you have in your name? I am pretty sure the government does not allow you to pay your own LLC rent. You might want to look into that.

@Nephtalie Pierre Sounds like you have 3 major options to get access to the equity that is in the home. 1. You can refinance the house to a new 15, 20, or 30 year mortgage (your choice). Most likely you would be able to take out 70-80% of the equity depending on the borrow's income and credit. Doing a refinance would cause you to have a mortgage payment every month for the next 15,20, or 30 years depending on what you did but you would be paying a low interest rate. This is most likely your best option if you plan on using the money to buy long term buy and hold properties. 2. You can get a HELOC on the property. This is a line of credit with the property as the collateral. Most banks will lend up to 80% of the value of the house. There will be some up front costs, appraisal, bank fee, survey etc, but when you are done you will have a "checking account" with 80% of the value that you can use. Normally banks like to see this revolving (being used and then paid back) within a year so this is probably not a good idea to get a buy and property with. The nice part about a HELOC is that if you don't use the money, you don't pay interest on it. If you use 10k you only pay interest on 10k for the number of days that the money is not in the checking account. It is ideal for flips and BRRRRR strategy 3. Last option is to sell the property. I don't think this is a good option.

For Options 1 and 2, you will have to go to a bank or local credit union. There will be paperwork and proof of income etc involved. You most likely will have to give tax records. If there are more than one person on the deed of the property, the combined income is normally used by the bank to determine if you make enough money to refi or get a HELOC. If one person does not work and the other makes good money then it would be the same as if both work and make half the money.

I currently am in the process of getting a HELOC on a property I own in Texas. I plan on using the HELOC for future flip projects. Let me know if you have any other questions. Also please note that Florida may have different rules than here in TX so keep that in mind.

Dan Green hey Dan I am an investor who works in this area. I recommend contacting Aislinn Phelan at Keller Williams in Beaumont. If you want to pm me the major cross streets I can give you an idea on price and if it flooded. Lots of homes in Port Arthur flooded during Harvey so beware of that. Feel free to pm with any specific questions.