All Forum Posts by: Andrew Katz

Looks like I need to talk to my accountant, but I was hoping to have this squared away before talking to him.

I realize I also have this problem with my property manager. The dates in the ledger do align with the bank account. 

My tenant paid a portion of their rent for December on 12/31/24 (late). I use apartments.com, so the money didn't end up in my account until 1/6/25.

Is this considered income for 2024 or 2025?

Quote from @Jonathan Greene:

Of your choices, #3 makes the most sense, but it doesn't have to be a house hack. Just buy a third property when you have the downpayment and reserves set aside. Why do you think you have to buy this third property in cash? To win? Buying from a wholesaler with only two properties under your belt could be a real problem as their ARV is always too high and repair costs too low, depending on how much you know to date.

I don't need to buy a property cash, but most of the value-add deals will likely require a cash offer, and I don't have enough to make a cash offer. House hacking seems to be my next step since it will require the least down payment.

Quote from @Riley Poppell:

I would do the cash out refinance and use the equity you currently have to buy another property. I would buy a place all cash if was an option but the best part of the refinance is that you can use the current equity and the potential new rental income to purchase.

I can't cash out refinance right now.
One of my properties doesn't have enough equity; I'm probably at 19%-21% LTV - 15% down house hack.
The other property has probably $80-90k I could tap into, but I have a 2.9% loan, and I won't even break even with the new interest rate.

I have done 2 house hacks. They have decent cash flow, but cash flow isn't super important important to me in my investing journey right now. I'd like to build up some equity, but I'm struggling to find value-add properties (and get offers accepted). I don't have enough money to buy all cash, and I don't have enough experience to partner with someone. What should my next steps be? Here are the options I thought up:

Option 1: Save up money for a few more years until I have enough to buy a place all cash from a wholesaler

Option 2: Aggressively pay down one of my mortgages (~$440k left at 6%) and cash out refinance in a few years to buy a place all cash
from a wholesaler

Option 3: Buy another house hack

All 3 of these will require me to put my value-all dreams on hold for a few years. Does anyone else have suggestions of other options I could pursue? I'd prefer to keep my investing local to Chicago right now.

@Kerli Casanova - House hacking is great!

Why didn't the deal go through? Was it on your side or was it on the seller's side?

I think it is easier to find a deal if you are house hacking since your deal doesn't need to be a home run; it just needs to be better then the alternative (paying rent).

The stipulation with conventional and FHA loans say you intend to occupy the the house for at least a year. Whether you occupy it or not, you won't be able to qualify for another loan for another year.

You might not end up living there for an entire year because if you move in and you don't like the house, you don't like the neighborhood, or you need to relocate for a job.

If you get the loan and never intended to live there for an entire year, then you are committing mortgage fraud. 

Thanks @Leslie Bole and @Chase Olson. I actually went to a REI meetup yesterday, and I was able to find a lender to help me out.

I'm looking to do a third house hack/BRRRR in the next 2 years. I plan to utilize some cash, margin loan, 401k loan, and a HELOC as a down payment.

My first house hack (now an out of state investment) has a Zestimate of $530K, and I have $266K left on the loan. Assuming I get an appraisal of $500K, I have ~$110k (75% of appraised value minus the loan) I could tap into for equity for a HELOC.

Question: What is the process for getting a HELOC?
Folks say use a local lender. Is that local to me? Or local to the property?
Do I get the appraisal? Or will the lender do that?

Hi Miles - it looks like you are looking for a local credit union or bank. Could you provide your city and state?