All Forum Posts by: Tuan Tran

Been a landlord for the past 4 years and have not had any major issues with insurance...until last year.  Part of the roof was blown off by storm and decided to replace the roof.  Filed a claim with the insurance company...and it was very challenging.  From the policy/coverage to working with the insurance company (mostly with the ease of working with the insurance company) that was a big hassle.  Lack of engagement, adjuster not responding back, late responses, etc...in in the rear to work with.

I have rental properties in the DFW area. 

Wonder what others think of core/essential pieces of the policy for coverage.  For example, replacement cost vs actual cash value.  Any recommendations for agents or company.

Thanks,

tt

@Yuri Woitscheck

See if there is an online/ in person class locally either through a junior college or adult school. I’m currently taking an online class at a local jr college and would say it’s one of the best class I’ve taken....ever... to including college courses.

Maybe because I have a vested interest or a topic that I really enjoy; either way, learning quite a bit. Its very basic, but learning a ton on basic like market analysis, transaction process, rehab, foreclosures, etc. The instructor also provides personal experience so it provides a level of “trade secrets”. The class had people from various parts of the country as well as foreign students from Canada....all for $95.

I wished I took this class prior to buying my rental property.

See if the link works for you

ed2go.com. Search for “real estate”

@NIcholas Hamel

I recently considered refi to 3.5 from 4.5, saving ~$70/ month, but would take over 7 years to recoup after factoring closing cost. That is quite a bit of time and I’m not sure whether or not I would still have the property.

I elected to pay more toward principle instead. You’ll definitely have to make sure it aligns with your strategy.

tt

@Ben Zimmerman

He’s applying the velocity banking method to accelerate his payment schedule. There are many YouTube videos that explain this.

The idea is to pay a large chunk of your principle with the HELOC and then quickly pay down HELOC with cash flow (in the videos they say income). Once the HELOC is paid off, another chunk toward principle. And start the cycle again

I’m doing this with my student loans on personal residence.

I found that If you can repay your HELOC draw back in 5-6 months. It's works very well.

I'm trying to do that by obtaining a HELOC on my rental property, but having a very difficult time to get any lender for a rental property.

@Kerry Baird

I'm an investor in the DFW area and looking for any banks to that will offer HELOC on rental property.

I’ve called many banks ranging from large box one, Chase etc to regional/credit unions, and NONE will offer HELOCs on rental properties. They are willing to offer on primary residence though.

I’m well capitalized, solid P&L sheet, near 800 personal credit score, low LTC...yet none will offer

Is this due to the pandemic and the uncertain times that we are in or a general practice that banks don’t offer HELOCs on rental properties?

Hello BPers

Background:

I have a new-ish tenant (~6 months into the lease).  Have been low maintenance, very courtesy family that seem overall very good people.  
During the evaluation process, this family didnt quite fit my 30%ish living expense cost criteria, but the leasing agent said they seem fairly good, the credit report was fairly good, and I was getting a little desparate to rent since there wasn't a whole lot of applicants (it was also in February...not a moving time)  Prepaying 3 months in advance calmed slightly calmed my nervous.  They have not been late yet.

I recently received a request to pay the rent 2 weeks late (15th), but wife has recently obtained employment and will be back on schedule by the following month.  I have a year reserve for operational expenses, but concern if legal steps needed, along with potentially any damage to the property due to any disputes...the cost could go up significantly that exceed my reserve.

Advice:

I think I am being a bit paranoid and concern that this could be a sign of rent payment challenge in the near future...along with federal moratorium on evictions.  I'm seeking feedback to anticipate the next steps.

I'm planning on a temporary modified rent solution to be paid on later months.  I don't want to reduced the rent, as they may try this tactic again.  What are your thoughts and recommendations?

Thanks,

tt

@Daniel McNulty

Appreciate your comment and makes complete sense.  Didn't know if there was another action I could take to maximize my capital while I'm looking for prospective acquisitions.  

Hello,

I'm currently evaluating whether to acquire another rental property (in DFW market) and the numbers appear to be working (~8% CoC ROI) However, I'm seeing multiple bids on properties that I'm looking at and it's harder to find "good deals". Also in the area, but can be applied to other markets as well, there are pending layoffs/furloughs from top 10 large employers that may disrupt the market. I feel confident that the market will return once a vaccine or another effective treatment is available, but concern that the near term events could push prices and rent down.

With the recent price appreciation in markets due to less inventory and the current economic environment.  What is your current position or strategy?

Thanks,

tt

I’m looking at using a 1031 exchange as a vehicle to invest in auction sites. Has anybody tried this method? If you have, what are some challenges with this strategy?

tt

I’m currently parking my cash in a high yield MMA in anticipation for my next acquisition; however, I feel that inflation is rating it away.

What are your strategies to keep it liquid yet still have your cash work for you?

Do you have it in stocks, mutual funds, etc? I feel that the market may be volatile or mutual funds have restrictive conditions when you can liquidate your holding.

What’s your strategy and why?

tt