All Forum Posts by: Shawn Clark

Originally posted by @Josh Dillingham:

@Shawn Clark I'm not sure. looking at it again, it's actually 4.375%  It's a small local bank and my credit score is over 800, but that's a big difference if the going rate for investment properties is actually 5.125% right now.  They definitely are aware it is a rental property.

 Did you pay any points to get the lower rate? That's a gem of a bank if you can get that for a rental property.

Appraisal should be about $450. The rest looks ok to me. You are paying 100% of transfers I assume?

Originally posted by @Josh Dillingham:

the interest rate seems high to me. I'm refinancing a single family rental right now, 30 year fixed for 4.35%

 Wow, how are you getting that on an investment loan?

Just ask some experienced title companies/attorneys about cases where title insurance was used/necessary. You'll never ever buy without it after hearing a few of those stories. It's more than just that "long lost aunt". There are lots of weird things that can pop up, some of which can be very expensive or even make the property useless.

Most of you seem to be forgetting that it’s NOT just about cash flow. It’s about GOALS. What are his goals??? THAT’s what actually matters. He laid out exactly how, after 30 years, his TOTAL cash flow is actually larger with the 15 yr. Why? Because interest is a real expense! It’s not imaginary. It’s not “paid by the tenants” lol. It’s real. Less interest means more money in YOUR pocket. Not the tenants. But his personal goals matter. If he wants to build up a huge portfolio ASAP and use current cash flow to do it, then yeah, go 30. But if he wants to keep just a few properties forever, then 15 is better. It’s all about the specific personal goals.

I bought it like 15 years ago and never played it. Maybe I’ll check it out. I’m surprised by all the positive comments here.

I'll never buy someone else's rehab again. Nor will I buy one that is not lead free or that I don't make lead free as part of my own rehab. You never know what kind of crap is hiding under someone's rehab.

Plus, if you don't do the rehab yourself then you don't get the benefit of that portion of the equity increase.

Are you currently house hacking? I don’t understand why you would lose a tax benefit? You either write it off personally or against expenses. In my case I get more benefit if I don’t live in it because I don’t itemize on my personal return. The standard deduction is greater.

Originally posted by @Jason Rodriguez:

does anyone have any tips for me to start in REI with other people's money as a college student, with no prior experience?

Find a deal. Simple as that. Or find someone to work for.

It's not magic. You can't start from nothing, with nothing, and do nothing. Something has to give. Bring money, or bring the ability to find a deal, or do the work along side someone else.

All good advice so far. I just had a lead inspection last week in one of mine with Abode Home Inspection. I've also used LeadTec when I tried to go lead free in one. Lead free is obviously better if you can get it, but sometimes it's not feasible.

I just learned that they also care about the outside. Apparently the city will (sometimes) randomly inspect the outside after an inspection. There was a bunch of stuff up high outside that I didn't want to deal with right now in this weather so I got a "winter waiver" for now. The upside is, I'm done for the moment. The downside is, they have to reinspect the inside again next year. But at least it bought me a few months. If the tenant stays that long I won't mind dealing with it in warmer weather.