All Forum Posts by: Sean Salandy

Thanks for the responses. It never really occurred to me about masking ownership until I read several people hint at it recently. I just assume if you're going to do a lot of evictions you would be wise to keep as much of your personal information away from the situation but I do understand that most of this information would be in the public records. I will look into the land trust option and speak to a CPA. Thanks again all.

I am planning to purchase properties to hold and rent. I am also planning to manage these properties with a separate property management entity. Is it best to try to prevent the tenants from knowing the name, address, etc., of the owner (in this case myself)? If so, what are the best strategies for doing so? Since I am a beginner, I will be handling all of the property management duties myself, without any employees. This means that I will be doing showings to prospective tenants, inspections, evictions and things of that nature. I will personally be in contact with the tenants which means they can look up ownership and most likely match me up as being the owner. Thanks

Rainier Guiang makes a good point in his last post and I'm interested in hearing responses. If you are taking out a loan for a down payment (either a line of credit or refinance loan) does that negatively affect your chances of getting the mortgage to pay for the rest of the home? Will the mortgage company look at the fact that you just took out this equity loan/line and deny your mortgage request?

Got it. Thanks.

Thanks for the response Ben. I understand what you are saying. Have you used either strategy? (The use of your rental income to pay the line back monthly or refinance the rental property to pay back the line) If so, did it work out well for you? How about the option to use the Line to buy the rental home cash instead of just using it for a down payment (as the first step)? Would it be better to do that so that you can refinance the rental home faster and you might actually be able to get a better deal since you would be buying the house cash? What do you think about that? Is it bad to put too many eggs in one basket? Thanks again.

I am in a similar situation as Jake and I have similar questions. I've thought about using the strategy that Ben mentions, where you would use the home equity line of credit to pay the down payments on investment properties. The main question I have about this strategy is: what would you do with this new balance that is now placed on your line of credit? From what I can tell, most Equity lines are not fixed rates and are generally only for 10 years. This would make the monthly payments somewhat too high to carry. So, am I missing the rest of the strategy? Should you: • Use the Equity Line of Credit to pay for down payments. •Then once the rental properties are purchased, refinance these properties to pay off the balance of the Equity Line of Credit an repeat the process for additional properties? Jake, I hope my questions add to your original question. Thanks

Just to tag on to the original question, how do banks view the use of a home equity line of credit to cover the down payment? Would they consider that as having skin in the game since you are sacrificing your existing property?