All Forum Posts by: Sarah Brown

Having a good agent in the area is going to be your best bet. 

Would you be willing to buy a property you can move into it?  You can get far bette financing for own occupied properties.  Then you could house hack to make extra money for your next down payment. 

Both the FHA and conventional will have to be in your name. You would not switch to titling in the LLC until after you moved out. There are loans that you can obtain in the LLC, however, the terms are generally less favorable than purchasing as an owner occupied FHA or Conventional loan.

Is it simply not up to code?  Can you take it to the city to get it permitted? We can apply for conditional use permits, or we can declare the new unit through zoning as long as it meets all requirements.  Zillow won't prevent your marketing, but as others have said, the city might have something to say about it. 

What are your goals? Will you be buying more rentals? Sticking with just these? why are you wanting the LLC? I worked with a company that helped me set up my asset protection. Bonus is they helped me become an anonymous owner through the LLC's and trusts. It's worth hiring someone for. If you do it wrong, it's just wasted admin costs.

I would check in with an attorney.  That law sounds pretty specific. 

DSCR are expensive, but that is because they generally take the greatest risk. The DSCR I have also has a prepayment penalty. If you can work with the local bank, I would do that. They will take a risk at the beginning and charge a little more. Once they learn how you do business, they will see you as less risky, offer better teams, and maybe even grant you access to cash you wouldn't get otherwise.

Were the tenants brand new during the due diligence period?  Did the seller not provide honest financials?  Generally, both of these situations don't just happen overnight.  Since many have been evicted or arrested, be grateful you get to get new tenants and stabilize the property.  Use it as an opportunity to add value to the property. 

That is pretty bad, but I have definitely seen worse.  I'm frequently surprised at how some people live. 

If you can pay off the HELOC quickly, that is not bad way to go. BMO used to do them.