All Forum Posts by: Samantha Baker

Credit check, income check, debt to income check, possibly requiring a co-signer as well to ad an other layer of protection. Calling post moving in to make sure they are still employed at said employer. Placing a monthly filter maintenance check monthly instead of quarterly, and on the 5th of the month starting the eviction process if they haven't paid yet. 

Do you have any other advice for vetting new tenants? 

Hello, 

I just want to make sure that I am not missing anything that I am not aware of prior to buy this home. 

320k buy price Seller owes 307k on the loan

Assumable loan at 5.5%

I would pay 13k for the equity in the home and still have 28.5 years left on the loan at close

Total to buy the home would be 15k at closing

Bonus she is leaving a Washer/Dryer/ and Fridge for me

Seller pays 2122 for mortgage/tax/insurance and there are no exemptions on the home. 

I can rent the home for 2400 comfortably. 

The seller wants to rent for 6 months after sale until her new home is built, putting it vacant in June this year for a new tenant. 

Am I missing anything? This looks like a great deal to me. 

Looking for my second property and I think I might have found a gem!!

Thanks in advance!!

Sam Baker

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $275,000
Cash invested: $5,000

4 Bedroom 3 full bath 1890sq ft home in Barbers Hill ISD.

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

learned about house hacking from Brandon Turner, Read Rich Dad Poor Dad by Robert K., and skip the flip by Haden Crabtree and I was convinced.

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

I was living in this home and the housing market was doing well. I felt like I missed my time to sell my home so I put it up for rent instead.

How did you finance this deal?

VA Loan

How did you add value to the deal?

New Build

What was the outcome?

Year 2 of renting. Two tenants. Had to recently evict my last tenant for non-payment. I am still ahead and have not lost money on this deal.

Lessons learned? Challenges?

Start the Eviction process sooner. Don't be a pushover, How to properly vet a tenant, make them pay the house call fees, and do a monthly check and pest control if you manage it yourself to insure the home is being taken care of.

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

Julie Prothro with Caldwell

@Bill B.

;) 

I guess moving it into my LLC would reduce my debt to income ratio on my personal credit. It would give me personally more ability to pull out a loan under my own credit.

I could pull the money out the same way as if I sold the property to an individual. Open more doors for my LLC to be able to perchance more properties with proof of funds...

reuse the equity out of the rental to buy another one under my own credit. 

And so I could leverage more debt under my personal credit and also under the LLC credit.

Am I missing the point? 

Thank you for helping me learn

Clayton,

Thank you that makes more sense. 

What do you think about me selling the property to my LLC? Is that something I can even do?

Clayton,

If the rental is in my name under my own credit debt to income ratio and not under an llc does this mess up the tax free advantage I have. Living in the home 2 out of the last five years? Or do I have it wrong? I understand the refinance closing cost of it. 

Would it be better to get a DSCR loan to purchase the house under my LLC I created, and take the cash out that way?

I just created my LLC in March, I was told I needed two years before banks would finance for the LLC.

BTW I'm in the good state of Texas. I know realastate is different in some states.

Thank you for all of the good information. I cant wait to see your advice for the above!

Thank you Bill for the selling advice and the math portion of it! I'll keep that in my notes.

Sam Baker

Hello, 

I recently completed a house hack that I turned in to a rental after living there for 4 years. I just completed my first year of rental income and great cash flow 800/month cash flow. I am still in the window to sell/cash out refinance with out paying taxes on the money made from the property. How can I tell if my rental will still cash flow after I pull out the money? What is the best way to pull out the money with tax advantage and still keep the rental and cash flow. 

I am enjoying the realestate ride and all the learning over the past 2 years. 

Thank you for your advice on this topic!

Sam Baker

I have a single family home 4 bed 3 bath that I am looking to invest in in a desirable neighborhood, great school, growing community. 

I have secured great financing. Home is 285k with 5k down. 4 year old home that needs nothing in terms of repairs. Comparing comps it will rent for 2300/month. All the bills, taxes, mortgage per month is 1800. I have run the 2% test.... It almost makes 1%. and meets the 50% rule of thumb. 

Will anyone else help me with the numbers in first glance rental positive cash flow for this property? 

First time real-estate investment here. Sweating bullets, but I am going to start somewhere. I am hoping with this property!!!

Thank you for your knowledge, and advice

-Sam