All Forum Posts by: Tanner Sherman

I would look at private lending opportunities or partnering with out of state investors. 

@Aurora Martinez right, I just mean you should probably found out how much you’re allowed to compound them before it becomes excessive

 Very good point, you're absolutely right that should be factored in too. 

I would always look to BRRRR the property first. If you can charge high enough rent to still cashflow after refinancing then you can't go wrong with that. Now if you need the remaining 20% of the equity to use towards your new house then it might be a good idea to sell.

Accepting negative cashflow is a sure way to hurt yourself in the long run. In this case you are better off not finding a deal than getting into a bad one. I would push for the break even point or minimal cashflow, or just invest out of state. Sometimes you can be more profitable by renting from someone else in your area and investing in a killer deal out of state. 

No that definitely makes sense. In that case I would probably refinance, take what you can get and the lower rate. There doesn't appear to be any downside to refinancing so long as the numbers are where you estimate them. I would start by asking a realtor to run a CMA just to get an idea of the new valuation, just so you have an outside perspective in case you were over zealous about the ARV and don't get stuck in the refinance process with a bad appraisal.

I would check with a lawyer as to the extent that you are allowed to charge late fees and then I would just let them add up and up and come time for them to move out you will have significant reason to not return their security deposit. Should they damage the property enough to forfeit the security deposit anyways then you have plenty of ammunition for small claims, and a significant cost to justify spending the time there.   

I wouldn't worry about the Zestimate at all, it is not accurate and if you are worried then just pay a realtor to run a CMA on your property to get an idea of the valuation. Zillow's algorithm is funky and an appraiser doesn't look at what zillow thinks.

yes that is correct- it is commonly known as the 2/5 or two out of five rule. If you are single and the property appreciates $250K or married and appreciates $500k you do not pay tax on the appreciation so long as you have lived in the property for two out of the most recent five years. 

I would start by looking at other ways you can add cashflow to the property- are there garages you can rent out, coin operated laundry, etc. I would absolutely recommend house hacking it, getting that low interest rate and living in it for a year, then move out and rent the unit you were in so you can move to your next househack. Those sound like really good numbers, what are you estimating for repairs, maintenance and other expenses? How are you going to finance this property? What percentage will you put down?