All Forum Posts by: Todd Swalin

I am 25% owner of the LLC with other family members. I do not think I had to personally guarantee the loan but I have been making every payment to the bank from my personal account for almost 2 years now so there would be no change in the mortgage payments being made.

 Thank you Nathan. This was a very in depth response with a lot I did not consider. 

My primary residence is owned in a family business LLC. I would like to transfer the property into my own name so that I can utilize the equity to acquire rental properties. I would prefer not to refinance as it would significantly increase my monthly payments. I am trying to sort through my options to find out what would work best.
I was thinking of quit claim deed but am concerned about the due on sale clause. Mortgage is with a local bank in a small town that the business uses so they would likely notice this change.

If the bank calls the due on sale clause could I refinance at that point?

I owe $100k on the house and it is worth around $320k. If I end up having to refinance would it be better to do a cash out refinance for as much as I can get or only refi the $100k and get a heloc?

The plan is to use the cash to brrr or flip a couple properties. 
Thank you for your advice.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Fort Dodge.

Purchase price: $66,000
Cash invested: $14,000

This 4-plex was fully rented when purchased. It has some maintenance issues that will need to be addressed in the near future but it is cash flowing nicely so far. One tenant moved out giving me the opportunity to fix it up a little and increase rent. In the 6 months I have owned it we have added about $180/month in additional rent because of the improvements and keeping up with market rent.

What made you interested in investing in this type of deal?

The cash flow on this property was very attractive.

How did you find this deal and how did you negotiate it?

I found it off of Zillow. I gave a pretty low offer at first which was denied to find out how low they would go. Then my business partner negotiated the final price.

How did you finance this deal?

Traditional bank financing

How did you add value to the deal?

I manage the property and have done most of the maintenance and repairs.

What was the outcome?

So far it is cash flowing very nicely and all the tenants seem to be happy living there. I am pleased with how it is going so far.

Lessons learned? Challenges?

We had one unit sit open for almost 2 months. It was very tempting to put someone in there just because of the lost income but I waited patiently for a good tenant and I am happy that I did. I learned to not rush into getting a vacancy filled with just anyone but to wait for someone you are happy with that will take care of the property and pay on time.

Investment Info:

Single-family residence buy & hold investment in Renwick.

Purchase price: $47,000
Cash invested: $10,000

Three bedroom 1 bath house is a great home. It was almost move in ready when we bought it. We ended up doing some painting and replacing the dining room floor.

What made you interested in investing in this type of deal?

It was a moderately priced home that didn't need much work. We were able to rent it out within a month of purchase.

How did you find this deal and how did you negotiate it?

We were working in the area and noticed the house for sale.

How did you finance this deal?

Traditional bank financing

How did you add value to the deal?

I manage the property.

What was the outcome?

We are still in the first year of owning it. The tenant who lives there has been perfect so far and seems to be taking care of the house very well.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $70,000
Cash invested: $14,000

A partner and I bought this property to fix up and rent out. It was a complete gut job inside and out.

What made you interested in investing in this type of deal?

It interested me because it is a duplex. The numbers would not work out as well if it were a single family home but it is much more attractive as a duplex.

How did you find this deal and how did you negotiate it?

It is just down the road from my house and I drive by it daily.

How did you finance this deal?

Traditional bank financing.

How did you add value to the deal?

I found the deal and once it is finished I will manage the property.

What was the outcome?

We are still in the process of fixing the property to make it livable.

Lessons learned? Challenges?

The scope of the project increased quite a bit once we started the project. We did not plan to do as much work as we ended up doing.

@Tyler Rasmussen thanks

@Matthew Powell thanks

I’m in Iowa and looking into starting a property management company. In Iowa i need to have a real estate license to get a property management license. Does anyone know if the property management company can be separate from the real estate agency I would be affiliated with in getting my real estate license?