All Forum Posts by: Sarah Brown

You are able to screen tenants through rentprep.com.  It's not the cheapest service I have found, but it's fast and easy to understand.  There are two levels you can do; one that requires the tenant to put in their info, and one where it doesn't.  The one where it doesn't does not give you as detailed info, but it definitely gives you what you need.  

If folks are interested but not progressing, you are either too high for the area and they are finding better deals else where, or your criteria are too strict.  I would consider looking at both.  Also keep in mind this is a tough time to fill a rental.  A lot of folks don't like to move in December. 

Couple of options here.  

1. Do what @Jon Reed and get a commercial loan.  Some of them are similar to a line of credit so you can take from it as you see fit.  You are able to buy single family homes with them.  

2. The other option is to secure private financing outside the standard bank option.  This would be similar to an owner carry, or to have a partner that floats the cash.  Downside of this is it can be a bit more pricey, but you have opportunity to negotiate your terms. 

@Bradley Swett

I am an active agent in my area. Returns depend on the investment, business model, and overall deal. Let’s connect and can chat more about it. We can schedule a time to jump on the phone

In-state vs Out of state does matter!  The  value of what you get for your dollar will be significantly different.  Seems to be $550k may not be a large enough some of money to do a fix in flip in CA, but where I live, that could get you a house cash plus cover rehab.  However, keep in mind out of state will have additional expenses because you will need more people on your team to keep projects going. 

The HELOC is a great idea. I like HELOCS because it's readily available cash that you don't have to pay interest on until you borrow it. You can then immediately pay it back off once you get your cash back and stop paying on interest. I have HELOC's on my investment properties so I have cash readily available in case something pops up that I just can't turn down.

The downside of using your equity in a fix and flip, is if something goes you wrong you can end up paying for a much longer time than anticipated, or worse, lose your house. 

@Samuel Iddings it depends on the investor and how aggressive they are.  Owner carry is technically private money, and if the terms are good, then it's worth it to stick with them for a while.  Hard money is regularly used for flips, though I have seen an investor use it for a great buy and hold opportunity and they needed quick cash to get through a deal.  I am not going to call it super common, but useful tool when the need arises which I have seen utilized.

This is all 100% dependent on the terms of the financing.  Look at the terms of your options and then make a decision from.  In order for a bank to refi, you will need to season the loan for at least 6 months.  Hard money and private money both tend to be expensive, so you'll want to make sure you factor in that cost when calculating your deal. 

Easy there tiger.  We aren't all bad :)  Some of us have a pretty good understanding of investments.  There is a lot more to investments than just cap rates.  Perhaps it would be better to choose your agent wisely for the type of transactions you want to transact.  Make sure they are either investors themselves, or focus on the investing.  Most agents can't be an expert of all areas of the market.  Just choose your agent wisely. 

You have a lot of questions here!  Maybe start by narrowing down your goals.  $550k is a pretty good chunk to be able to do some investing.  Are you trying to keep it in CA, or invest out of state? 

I have a strict no friends or family policy for my rentals. 

I agree with the estoppel.  Also, the seller should have record of rents received and expenses paid.  It should be considered as part of your due diligence process.  I would recommend finding RE agent that can help you through some of these details.