All Forum Posts by: Sarah Brown

Go talk to a lender. There is a lot that goes into deciding that. If you can, I would recommend getting a HELOC.

This is a great story!  I have seen many fridges that have made me gag.  I promise you, it won't be your last.  Couple of lessons or tips here. 

1. Reach out to your electrical company and see if they do continual service agreements.  If a tenant shuts off power, it automatically goes into my name so that the house isn't without power.  I also don't have to pay the fee to turn it back on.  If the tenant is about to lose service for non-payment, I get notice for that too.  

2. I don't wait two weeks if I haven't heard from a tenant that I tried to contact.  After a few days I will post an inspection notice and let myself in if they are not home.

Depends on your end goal. What kind of rental would it be? What kind of cashflow would you get? I rarely recommend a cash-out refi. I prefer to pull a HELOC if I can. It gives a lot more flexibility.

Most lenders will not want to take second position. That being said, sometimes you negotiate better terms with an owner carry than you can with a bank. At least you have opportunity to negotiate! Then you can you pull a HELOC, which would take second position anyway to finance your rehab.

Hi Stephen,  scope out RentecDirect.  I think it will have what you are looking for. 

@Steven DeHart

I have a HELOC on one of my properties. When talking to clients who want to do a cash out refi, I recommend them get a HELOC instead. It's way more flexible. Just be sure when doing your calculations on the rental you include the cost of the HELOC

@Bryan Mitchell

Epoxy. Easy to do with beautiful results and less cost

If you want to sweeten the offer, why don't you let the seller keep your portion of the commission?  I am sure they wouldn't complaint about getting the % back.  That being said, I usually keep it. 

An LLC is a pass-through. All income from LLC will be subject to taxes. I would call another CPA if you don't believe the one you have.

Post notice of past due rent to get the eviction party started.  Then have a conversation with where he has options.  Sometimes giving people options makes them feel in control of the situation even though you are controlling the options.  You can try cash for keys to get him out quicker than an eviction; "I won't come after this months rent, if you are out in XX days."  If you don't pay, I will charge for rent plus cost of eviction.  It doesn't have to be worded exactly like that, or maybe you have some other options in mind, but at this point its about limiting costs and getting the property back in the best condition as possible.  

If you think it would be helpful, I have in the past required the tenant to leave the unit as "rent ready" as part of a condition of cash for keys.  Depends on how bad the unit is. 

Good luck!