All Forum Posts by: John Vietmeyer

I don’t expect folks to pay for an “application” before showing the property. In fact, I don’t charge anything to apply.  I simply collect their info in a simple word doc then if they want to move forward, usually after seeing the property, I have them pay for the background check.  If everything in the background check validates what they stated in their application, I subtract the background fee they paid from their 1st month’s rent. 
If they lied in their application, or don’t follow-through with the lease there is no $ out of my pocket, just some lost time. 

At minimum I do make folks acknowledge my published criteria for tenants before taking time to show.  Often I don’t have a complete application at that point, but let folks know it’s preferred. 

I expect the substantial improvement rule will be the hard one if buying an existing property.  You will need to make improvements equivalent to the vale of the existing structures.  

Financing and hitting the 90% rule may be a little confusing but shouldn’t be an issue if I understand the law and your situation correctly.  

Firewall requirements will be a big hurdle. 

Unfortunately HOA's with community pools are not likely to allow short term rentals.

I’ll PM you my wife’s contact.  She has been an agent in Charleston for 18 years and know more than I.  We live on Johns Island.  

Keep in mind each unit will need a 1 hour fire separation.  Firewall generally needs to be uninterrupted through attic these days. It’s doable but will limit your configurations. 

Unfortunately there are no nice houses in Park Circle for 200k anymore.  If you find one let me know. 

I live in Charleston but have shifted focus to Savannah since there are still deals under 150k. 

I recommend Savannah if your goal is to build a portfolio of cash flowing properties. 

Snowballing certainly has its benefits, but i’m wondering if there is a better way to reduce total interest expenses.

Given that that 2/3 rds of interest is paid in the 1st ten years of a 30 Fixed mortgage, there is a timing aspect that comes into play.  For example an extra payment on a 4.75% interest loan in the last year of amortization may save you hundreds, while an extra payment on a 3.75% loan in the first year of amortization may save you tens of thousands.  

With the goal of reducing total interest expense, I’m considering a strategy of paying at least as much principal each year as interest.  In this scenario, I’ll pay extra on newer mortgages but nothing extra on older mortgages where the majority of my payment is already going to principal.  While, it will take longer to close mortgages, mathematically I believe it will save interest expense. 

For the sake argument let’s say I have 5-6 mortgages all 30 fixed with rates between 3.25% and 4.75%.  

Anyone else thinking along these lines?

 

I think you’re good with tenant in place  in this market.  Don’t know the property, but with rent at $1295 expect it will stay rented.  

Are these all VA loan rates? I got 3.35% on 30 year fixed and thought I was doing great.

I’m working through this now on a project in GA.  If there are no structural changes simple sketches may meet the need.  Stamped engineering plans are expensive but not necessary for most interior renovations.