All Forum Posts by: Todd Rasmussen

@Shane Ward

Yeah, I'm working towards the same thing so I get your reluctance. Shaneka with Elements Credit Union www.elements.org/spedersen is who does almost all of our conforming loans. She's doing three financing actions off one credit hit for us right now. Hopefully, it's less of a deal than you think. I'd call her first and give her your numbers. She should give you a no if she can't help off the bat. Commercial lenders have shorter amortization, lower LTV, and higher interest rates. Go conforming until you run out of conforming loans has been the advice I've gotten from any non conforming lender I've talked to.

Looks a little light on expense allowance. Vacancy is suggesting 1 month vacant every three years which seems optimistic. Even from a pessimistic approach, you will still be cash flow positive though. Looks solid to me.

 
YES! Only stainless steel braided connections!!!

Go to your preferred large home improvement retailer's pro desk and get an appliance package bid. Then take it to their competitor to beat. Then go back to your preferred large home improvement retailer and say, "Gee, I'd rather work with you. Can you at least match it?" Step 1 saved me 15.8% and step 2 saved 5.3% off advertised pricing. This also works on anything you spend a couple grand on there. I've heard of people starting at the second closest location for each and going through a second round of it by changing stores, but that just seems ridiculous.

Also, I feel like by not calling out their company by name, there is a lesser chance they revoke my pro services account.... Anyways, Team Orange.

I ask for lease status/expiration dates and have my realtor run comps so I know what the market looks like. I also write offers subject to personal inspection, so I have a chance to walk before I've even had to pay for a home inspection.

If you can afford the current debt service and you can bear to part with your worst performer, you could pay off your credit cards, HELOC, and have 40K to go to the next deal with. Mortgage the two you still have once your creditors report zero balances and you are looking at having 2.5 times your previous working capital as cash instead of loans for the next round of property acquisitions and more favorable rates than you're going to see under your current circumstance. The hurt at tax time might be worth working with cash instead of "cash".

I wouldn't worry about keeping a wood burning fireplace in a long term rental. Best case scenario, you are rewarded for your 10k cap ex with extra maintenance costs from getting a chimney swept and having a pile of wood next to your property which encourages termites and a bunch of other pests and rodents. I'd do a wall insert if you felt you needed it to be competitive and save yourself some worry and money.

Hi Sarah,

So I've done best case and worst case scenario's of what you are looking at. First off, I'd call a different contractor. If there is no second level on the home, a contractor should be able to walk and or crawl the attic to see how the ceiling joists are framed from above. There's no reason you can't get a bid for what you are asking for. What's lighting like in the kitchen? If it's the florescent light boxes those are usually framed as a sub structure and it should be relatively inexpensive. Just demo, new lighting and drywall. The more expensive situation would involve potentially having to reframe a portion of your roof/ceiling structure

Anything that is going to be a primary residence and cash flow positive puts you ahead of a lot of people. Might want to plan on higher cap ex if there are home systems that haven't been fully renovated, electrical and plumbing comes to mind especially with age of house (With the repair expense considered the total looks safe to me, but the oldest home I own is 1976).

Confirm you have reserves or other income that will sustain you if units are vacant. $1,700/month hit to income on the three bedroom unit will start to hurt very fast in this deal if you haven't planned for it to happen.

 100!!!