All Forum Posts by: Sandra Roddy

Thank you for the response.  Yes, I think a 30 year fixed would be the way to go for stability and flexibility.  The cost of the homes are about 200K I would guess.  Also they would rent for about 1.5K a month.  Do these numbers look reasonable?  Also, what would determine the loan to value, if you will.

Recently, I took over management of my elderly father's real estate portfolio (i.e. mainly single family homes).  All of his properties are paid off, but most have deferred maintenance which I would like to address.  Among several things the most common items are things like roofing, HVAC, paint, etc..  

Currently, robbing Peter to Pay Paul has been the name of the game for the last few months. This strategy is not sustainable. All of the properties are now part of a newly established LLC and all the properties have been deeded over to the LLC.

What is the best way to go about pulling cash from a couple of homes to make the necessary upgrades which are needed in some of his properties?  Such would be instrumental towards commanding top rental returns, minimizing taxes and establishing better operating procedures.

So far, I have gone to two of my local banks but they refused to do business with me since I do not have two years worth of tax returns.  Also, I tried a couple of local mortgage lenders but they were not interested.

At this point, alternative options are needed to be able to grow and establish the LLC. Has anyone gone through a similar scenario or have advice? I have rent rolls for the properties and can provide rental history.

Loved the story.  Thanks for sharing!  BTW, a few years back, I live near Sacramento and I enjoyed attending the Capital City Wealthy Builders group.  A lot of folks from the area converge once a month and you might be able to network in your own back yard.  

@Dong Yan

A couple of additional things came to mind.

1.  If you do sell, it would only make sense to a 1031 exchange due to the taxation.  

2.  The condo will probably be a good candidate for cooperate housing due to the location ... Irvine or O.C it appears.  Cooperate rentals produce higher returns, but also require additional diligence.  Check out corporatehousingbyowner and cooperatehousing.com for additional information.  

Dong, real estate in California ... especially in your area ... is as good as gold.  Call it California gold as Huell Howser used to say.  Hold it for as long as you can as long as you are not losing any money on it.  With the tax deductions and appreciation, it produces, you should continue to produce a reasonable return.  

Now, if you cannot stomach turnovers and the recurring HOA fees, you should relieve yourself of the stress. However, think twice before selling it because as you stated, renting it out is fairly easy (a major factor for many investors).

@Patrick H.

Fantastic thread!  Would it be possible to update us on your experience thus far?  Self storage has now piqued my interest after hearing one of the industry leaders speak at a convention.  

The information laid out was very positive and due to technology and automation, it seems like management can be minimal.  Any advice?

Great rental in a blue-collar part of the city.  Cash only.  Selling through an agent.  Additional details are below.   If there are any questions, feel free to ask.  

Monthly rent:  $750

Insurance:  $650

Property Tax, City:  $470

Property Tax, County:  $602

http://www.realtor.com/realestateandhomes-detail/3723-Skylark-Dr_Memphis_TN_38109_M87935-46291

@Taylor Brugna Better said Taylor.  Thank you for the assist. 

Trying to claim a tax deduction while house hacking is often too cumbersome.  Additionally, you will end up stressing out your tax representative and yourself.   Not worth it! 

Time is money.  Hence, if there are SIGNIFICANT deductions to be made then consider the deduction, otherwise move on and focus your time and energy on alternative options.  

Very nice!  I recall reading a few of your previous posts as you were buying different properties.  Thanks for sharing!