All Forum Posts by: Tristan Colborg

Then there was crickets from @Tom R after criticizing the feedback he was getting.

I would take a more extreme approach... Offer cash for keys get her to move out and then you can increase your rents and remove internet from the lease. Shouldn't take you to long to recooperate your money from cash for keys. But that's just me. Otherwise I think the idea around setting up a mesh network or Powerline adapter would be your best bet. The only thing with the Powerline adapter is that both outlets where you plugin need to be on the same electrical panel.

@Daniel Pak I'm one of the believers to do a 30 year conventional and pay it like a 15 year. That way you have a lower actual payment in case something happens where you need to pay less, and it frees up money for you to invest if you want to. With a 15 year you can't do that, and your stuck paying a higher mortgage each month regardless. Plus the small percentage change you get on the 15 year term versus the 30 would be better utilized to invest with than paying more off your house each month.

@Chris Garcia Yes you have to have ties to the military to join. It could be parents, grandparents, siblings, etc.

I may be wrong but in this situation I think it would be just as beneficial to take whatever they pay you as cash. This you could probably get away with not reporting as income, and could use it to pay down your principal faster or save towards additional investment properties. I think trying to set up a lease for depreciation wouldn't be worth it in this case.

@Cristian Aviles-Morales So all Helocs have a draw period and a repayment period. How long each of those are depends on the bank. Mine with Navy Federal for example has a 20 year draw period and 20 year repayment period. During the draw period you are paying 1% of whatever your balance is and it is lowering your principal and interest with each payment. At the and of your draw period the remaining balance gets amortized over the amortization period. So if you started with 80k during the draw period and had a remaining balance of 50k at the end, the 50k would be amortized over that period. So in my case the 50k would be over 20 year period, and the payments are based off that 20 year period not the 1% any more. Hopefully that makes sense.

I personally like the HELOC option more than the cash out refi. It let's you tap into the equity of the property and have it available to use when you want it. If you have no use for it, then it sits there and you are not making payments on it. Then when you have something you want to use it on you can, and then only pay on what you have used. The only downside to the HELOC is that many of them have a 1% minimum payment on the balance used until you are out of the draw period. So if you use $80k of it your payment is $800. Where as on a 15 year amortized payment it would be just over $600. Still I think it's good to just have the funds available for when you want them.

I am right there with most people on this one. Get a practical car and rent a truck or get your contractors to carry your materials. If you really want a vehicle to do PM stuff then get a van. Like everyone said you can fit more, it's secure, and protected from the elements. There is a reason why many installation companies have them (cable, blinds, etc..).

@Thomas S. You are right it is a business decision, and if were A/B properties it would be the same for me as a landlord. Not worth it to me both financially and morally.

@Jeremiah Leonard I think this sounds like a really solid plan. I would look at a BRRRR/house hack and complete that first. That way you get some experience under your belt and then can slowly move up into bigger projects using your inheritance almost as a private lender that you pay back using the BRRRR strategy again then rinse and repeat. You may then get to a point where you feel more comfortable moving into larger multi family and will have the capital to do so.