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All Forum Posts by: Timothy Frazier

Timothy Frazier has started 12 posts and replied 40 times.

Post: Capital gains question for primary residence

Timothy FrazierPosted
  • Pittsburgh, PA
  • Posts 41
  • Votes 10

My current home is a single family house in my name and with mortgage debt in my name in PA. I have lived in this property for several years and due to the appreciation in my area over that time as well as the upgrades and repairs I have done to it, have good equity in the property.

Probably within a year or two I could be moving. However I would like to keep the property and mainly use it as an Airbnb for several years. I was trying to see if there was a good strategy for navigating around paying a capital gain on how much appreciation I've had. My understanding is it would be about 15%. I have an LLC where all my investment properties are held in, but I'm worried if I move it to that it could trigger my due on sale clause and I'd lose by 2020 mortgage rate (the low payment on that is why I'm attracted to keeping it long term).

Anyone out there run into this and have any good strategies? Also if I’m able to pay the mortgage off before I move out of it as my primary residence, could that open up other opportunities to try to avoid the capital gain?

Does this app act up for anyone else when scrolling through your followed forums? It works ok for me at first but after I scroll through a few the same 2 or 3 just keep repeating. Anyone else have this issue or know a fix?

Post: Loan or Line of Credit

Timothy FrazierPosted
  • Pittsburgh, PA
  • Posts 41
  • Votes 10

Kind of depends how much of the money you need to spend now.

HELOC can go up to 100% of appraised value and is nice because it's flexible and you're only charged interest when you withdraw and spend it. Mortgage you'll have to start making payments right away but the interest cost will be less. It all depends on how quick you need it and how much you'll spend.

Post: Best way to advertise your rental and screen tenants?

Timothy FrazierPosted
  • Pittsburgh, PA
  • Posts 41
  • Votes 10

@Edilson Gomes

The price does a lot of the screening for you. Nice area nice house nice price requires a tenant with nice income that probably stays out of trouble. Worse area worse house worse price… you see where I’m going.

I have an application I’ve developed all tenants have to fill out. I do most of the criminal myself and use landlordstation to run credit. You can tell from a 60 second conversation with someone how good of a fit they could be. You want to know their employment status and how long they’ve been in their line of work. You also want to know why they are moving, and why they are interested in your unit. Calling current landlord is also a must.

Post: Where are you buying lists and for how much?

Timothy FrazierPosted
  • Pittsburgh, PA
  • Posts 41
  • Votes 10

@Timothy Frazier

Sorry single family through fourplex

Post: Where are you buying lists and for how much?

Timothy FrazierPosted
  • Pittsburgh, PA
  • Posts 41
  • Votes 10

Was wondering if there’s any new data places out there lately. What I normally buy is from Melissa with the following inputs:

*absentee owner/non-owner occupied

*R1~R4 (single family through duplex)

*regular or person owned only (no trusts, no LLCs/corporations, etc.)

*owned property 5+ years

*specify target zip codes

Cost is $75 per 1000. Anyone buying from anywhere else and what do your costs look like?

You’re required to provide what’s in your lease is the basic fact.

As many have stated the minimum of what’s required is typically heat, water, electricity, and a safe and healthy environment inside (aka no mold everywhere and rats all over the place).

The question you need to be asking is what *SHOULD* you provide. To me it’s mainly dependent on how many units your own and how much you can afford any vacancy. The more you provide, the more attractive your unit can be, and the more rent you will be able to command. But without a doubt providing anything above what’s required is one more thing that can break.

I own 3 units and generally provide fridge, stove, washer, dryer. If any of my units is vacant that month is a loss. Thus I accept the maintenance calls that come with them because I think it helps them attract good tenants. But I can tell you more than 1 appliance nightmare story that Ive had to deal with, and there’s no question providing no appliances at all and telling tenants to bring/buy what they want lowers your potential hassle factor immensely.

One of the heaviest hitter landlords I know in my market who owns 100+ units and self manages it all does not provide a single fridge, stove, washer or dryer in anything. He gets a bit less in rent bc of it and they may take a touch longer to fill. But when you have that much under you it’s all about managing it by eliminating the expenses/hassle before it occurs.

These are thoughts I tell people to consider when it comes to appliances. Best of luck.

Post: Cash out refi less than 1 year after purchase

Timothy FrazierPosted
  • Pittsburgh, PA
  • Posts 41
  • Votes 10

Have two properties I bought and renovated for cash, one in August 2021 (leased it in September 2021), another in December 2021 (just leased it).

Total numbers as follows (combined for both properties):

Purchase price - $108k

Renovation - $67k

Total cost - $175k

Estimated current value - $220k

Rent: $2175/mo signed through May 2023

I’m looking to get as much as that $175k back as I can. Even with good cash flow I’m getting a lot of pushback from lenders right now bc I haven’t owned them for a year. I am getting some who will do 75-80% of the $175k project cost but nobody who will go off appraised value.

Anyone work with a lender who will do it off appraised value? Either I'll have to wait it out or just accept not getting as much back if I do it now. Would be glad to hear thoughts of people who do BRRR more regularly.

Post: Social security off by 1 digit

Timothy FrazierPosted
  • Pittsburgh, PA
  • Posts 41
  • Votes 10

@Timothy Frazier

Thanks to the responses. I actually had to deny this applicant for several other reasons. New applicants had exact match. That first applicant had a lot to not like I have a feeling she put that in 1 digit off on purpose.

Post: Social security off by 1 digit

Timothy FrazierPosted
  • Pittsburgh, PA
  • Posts 41
  • Votes 10

@Theresa Harris

Yes I have her SS on my application as well as a copy of her drivers license. I’m not sure if she typed a digit in wrong when landlord station sent her the screening or if they are the ones making a mistake. As long as her references check out I’m going to pass her.