All Forum Posts by: Ryan Fox

@Joe Dupa- If you own it in an LLC, the bank is likely going to run your credit, but they aren't too interested in your personal income. They're more interested in the rental income the property produces or is capable of producing (assuming it's a rental).

A HELOC on a property owned by an LLC is called a commercial line of credit. The advantage of it is that it's pretty inexpensive to get set up and you only pay interest on what's drawn.

A cash-out refi will have more expensive closing costs but locks in your rate.  Either option will likely affect your credit score.

There is considerable difference between banks as to how long you have to own the property before doing a commercial LOC / cash out refi. The banks I've spoken to do a commercial LOC after you've owned the property over a year, but they do cash-out refi's immediately after you take title.

@Ellen Womack- Having handled a number of evictions, it is pretty easy for someone to get something wrong in process.  If you haven't done it before, you may make a mistake and then end up hiring an attorney to start the process all over again.  If you really want to learn the process, hire an attorney and ask him / her to send you copies of all documents they file with the court.  Every case is different, and the documents that are filed in one case are not necessarily the documents that are filed in another case, but that may give you some solid background.  

If you do hire an attorney, I'd also recommend checking up on the case through the court's website.  A couple months ago, a property manager I was using for one of my rentals filed an eviction and mistakenly dismissed it even though the tenant had not paid up all the missing rent.  By looking on the court's website, I could tell that the case was dismissed and re-filed.  This delayed the eviction process.  My property manager never would have admitted to me they made this mistake.  

@Kristina Kendall - Happy to help.  Feel free to DM me.

@Colleen F.- This investor wanted to expand the house from 6 bedrooms to 7 and rent out each individually.  There are 3 bathrooms.  Do travel nurses - or medium-term nurses in general - desire their own bathrooms?  

I do private lending and one of my borrowers requested a loan for the purchase and renovation of a home to be used to rent to traveling nurses.  She thought it would be a good place for a traveling nurse rental because there are 3 hospitals within a 20 minute drive.  However, based on my research, only one of the hospitals hired nurses on a temporary basis, and they only had one position currently available.  Did I make the right decision to tell her I didn't want to loan with that business model?  There are various other primary care / specialty care facilities in the area.

@Luz Vega- Wow, that's a really low price for Raytown.  How many bedrooms does it have and when did you buy it?

I'm assuming you're looking to invest there from a distance, and the best place to start is with an agent.  The agent should have the local connections to start building your team.  Read David Greene's book on out of state investing.  

@Conner Jackson- If I want to later take out a cash-out mortgage on the replacement property to pay off the HELOC, are there any restrictions as to when I can do that or the amount of cash-out?

The property I want to relinquish in a 1031 exchange has a $75,000 mortgage on it.  On the replacement property, does the debt have to be a mortgage as well, or can I use a home equity line on my primary residence to constitute the debt on the replacement property?   Thanks in advance!

@Susannah Nation- I've been buying value-add rentals in the Midwest while living on the West Coast since 2019.  It's definitely possible to do.  

The best way to find a contractor is to find an agent who has a really strong relationship with a contractor.  Then, after you purchase the property, you have the agent work up a scope of work to have the contractor work off of.  You make progress payments after the agent shows you pictures of the work completed.  I pay my agent extra for this service.

 Your agent needs to have experience with renovation and it's not necessarily expertise you need to bring to the table.

If you're concerned about interfacing with the contractor as a woman, this isn't a concern as the agent is interfacing with the contractor, not you.