All Forum Posts by: Spenser Harding

@Chris Martin @Hiron Fernando

I called PenFed this morning and got some additional clarity on Chris's interpretation of a line of credit. PenFed has a "Home Equity" program for non-owner occupied properties or rentals.  Within in that program, you can choose two sub products:

Home Equity Loan - Fixed rate, fixed payment, fully amortized- terms of up to 12 yeas max.

Home Equity Line of Credit - Open ended line, draw period of 12 years, interest only starting @ prime + 1.

Bother products are up to 80% LTV on the rental property if you own 3 or less rentals. The nice lady I spoke to said things like DTI are "flexible" and dependent on what income the property brings in, what market the house is in and obviously the value.

Chris - the graphic you recently posted is completely accurate of the "Home Equity" loan they offer however if you go on their website and specifically search for home equity line of credit, they also have information about the N.O.O. line they offer

https://www.penfed.org/home-equity-center/home-equity-line-of-credit

Under their logo on the top left you can toggle between loan and line. 

Hope this helps everyone! 

Hey Greg -  I would take a page out of Dave Ramsey's book and pay off your "bad debts".  It doesn't matter what the match is when you have dumb debt affecting your personal cash flow which impacts your long-term ability to grow and invest.  Might be worth taking some time off in the short term to knock that out. 

@Account Closed

 How many units?

@Jesse Gebauer The security deposit should be the holding deposit IMO.

@Jesse Gebauer

 I had this same problem over a month ago.  I setup an ad-blast through postlets and also posted in craigslist. I received ~120 responses in 3 days!!  I got overwhelmed and backlogged on responses so I pulled them all.  I made a few mistakes by not listing all my requirements i.e. 3x rent, deposit amount, mandatory screening and application -but what I learned most from another BPr was to have a larger application fee, say $200 where only $40 goes to the cost of application but $160 is a credit towards deposit/first months rent. This would have definitely reduced my inquires to only serious people, not people just kicking the tires. I know all this for next time but I would agree that like you, my gut was telling me I wasn't charging enough. I waited a week before I reposted the ad for $100/month more and I still got a ton of replies! I needed to fill my house so selected a tenant from that pool of applicants but I still feel I could get another $100 for my SFR in the Seattle/Tacoma area. So, if you have a week or two I highly recommend tweaking your ad and raising rent to find out what the true market price for your house is. Good luck!

Thanks everyone! - It felt really good getting that first months rent payment. 

@Angel Rosado I got into REI for a couple of reasons. First because I love investing and tapping into my entrepreneurial juices. Second, I want to change my family tree - I grew up with a single mother who struggled constantly financially - we ate a lot of PBJs and casseroles and I don't want that for my young son. Third, When my wife got pregnant, she had an overwhelming sense of nesting and fostering her maternal feelings while I just had this urge to provide and REI was that answer. And finally, I have always enjoyed real estate and have been curious about it. I found a way to combine my hobbies of investing, passion for finance, and interest in RE all in one place. It's pretty cool getting paid to do things you love.

Hello BP, I have been wanting to right this post for a long time!!! After years of reading books, searching 1000s of forum posts, analyzing multiple potential deals, and spending hours listening to informative podcasts- I have finally made my first move.

Weeks ago I was invited to my first webinar on the BRRR strategy and was really excited to learn my great local investor @Brandon Turner. Though I knew my house that I was living in was going to be a good investment- however it wasn’t yet because it was just a liability that I lived in and had done a ton of repairs and renovation to. I needed make that final step and move it from the $$ sucking liability column over to cash flowing asset column by renting it out. That great webinar was my “aha” moment.

I Bought in October 2012 which turned out to be an incredible time in the Seattle / Tacoma market. It is an awesome 3br/2bath, purchased for $165,000 in a great location with trails and parks nearby but needed work.

My wife and I Rehabbed the property by knocking down walls, remodeling bathrooms, redoing the kitchen, replaced roof, added new flooring, and some other stuff over the last 2.5 years we have lived there.

We found a great tenant (hopefully) to Rent the house from us by utilizing the guides and info here on BP. I’d say this is where the most learning took place as I made a lot of mistakes in my online marketing and being completely overwhelmed with the interest in the property.

After all the renovation, I knew we had equity to use so we Refinanced our house via a home equity line of credit to pull money out to put down on our next project in a grade A neighborhood. Our forced appreciation and market conditions increased the value over $100k!

After all this, I am really glad we chose to go this route.We are in our new property with zero down. Our rental property gives us $300 after the mortgage, equity line payment, and saving for maintenance. We spent months of analysis paralysis, viewing properties, making offers and being beat out. But, I am really glad we did, this is definitely the best option for us to finally get into real estate investing! What great learning experience and I appreciate all of your contributions whether you realized you were helping me or not!

@Mindy Jensen Thanks for the info on letting them know what is required upfront - I disclosed about half of that.  I noticed a lot of cars driving in front of my house.  I am learning a lot from this marketing!

@Curtis Bidwell  Great suggestion on the promotion price! I would have never came up with that on my own!

@Curtis Bidwell  @Hannah Robie Thanks for the response, I have an additional 12 people since this morning.  I am planning on inviting all the very interested people to one open house.  I am still concerned I am charging below fair market value in Des Moines....

Hello BP!  I bought my house in 2012 and am going to be renting it out.  I live in the Seattle/Tacoma area and I created a Craigslist/Postlets ad that went live yesterday after noon around 4, and since then I have received over 35 phone calls and emails of people interested.  My research of Zillow, Rentometer, and looking at what other landlords in my were charging suggested a price of around $1600 so I have it listed for $1595.  My questions are 1. Is it normal to have that much attraction right off the bat? - so much so it I hardly have the capacity to respond to all of them.  2. Is this a sign that I am not charging enough?