All Forum Posts by: Tyler Caruso

I'm curious to know how you do your banking with multiple properties. Currently I have 1 rental and am aggressively viewing others to purchase. I have a seperate bank account (no LLC) in which I deposit and pay all things associated with my 1 rental. Once I move to 2 and then 20 and then 200, how do you do your banking?

I don't think it makes sense to have 1 account for each property. I would imagine you have 1 account for all properties and manage just 1 account and use quick books or some other kind of accounting software techniques. Just asking in case there are different pros and cons to various banking strategies before I move into multiple rental world.

Thanks! Great website!

Do these tenants have any housing vouchers or are the paying the whole monthly rent? 3BD 1Bath?

A little background before my questions:

I have a tenant in a property that was my primary residence. I had renters warehouse place her because at the time, I was not interested in renting, I wanted to sell our first house and had not prepared myself for renting or anything that went along with it. My experience with renters warehouse was actually great. She is planning on renewing the lease (current lease ends 1/31/17) and I have spoken to her about a 25 increase in rent for next year to bring the montly rent to 1620 per month.

1 - What is the process through MBQ for rent increase. I'm sure whenever there is an increase, the tenant will only pay a portion of that increase and the voucher will cover the rest?

2 - can I use the original renters warehouse lease and have her sign something that says something along the lines of "I am continuing the original lease for 12 more months and agree to 1620 month for that period" or do I need her to sign a new lease for 12 months?

Thanks for all your help, since renting in February of this year, I have learned a ton on this webiste and listening to the podcasts has been very informative. What a great resource!!!

I'm also interested in hearing about the 9k purchase price rehab. did it remain a rental or flip? if it is a rental, what is the rent? 

All great info! I'm on the hunt for #2.

The short answer is my credit score was not in the top tier to get prime rate and now it is. 

If I recall, the best rate available in feb was 4.5 or 4.625.

I turned my primary residence into a rental in February because I was unable to sell it. It's a SFH 3BD 1.5Bath in Parkville MD. I am on a fixed 30 year loan at 5.25 percent that just started in Feb (I refinanced from a 15 to a 30 when I rented it So I could cash flow the property) currently I owe 156k and it appraised for 212k back in feb. My monthly payment is 1152 and my rent is 1595. I only found this forum after I rented it So i realize now I have very low cash flow after considering true expenses. If I refinance it will add about 4k to the mortgage and my payment will drop 77 dollars and my rate will be 4.25. I anticipate raising rent at the end of the lease somewhere between 25 and 40 dollars.

Should I refinance knowing that it will save 27k in interest over the life of the loan but take about 5 years to recoup the additional mortgage being added on, all to cash flow an additional 77 a month?

My estimate true cash flow on the property now is 100 a month.

Just wanted some different opinions and why. I do plan to keep this a rental for the foreseeable future.

Thanks!

Tyler

and if he were to partner how would one share in the write offs? Would that only be able to be done if it were placed in an LLC or could him and I still use the against or personal incomes? Just split the write offs as well?

I'm also most interest in a loan format to keep it cleaner for now. I'm still using my first rental house as a personal write off since it was my old primary residence, I don't have an LLC or anything yet.

If it were a loan, what is the going rate and term for something like that?

I have a friend who is interested in investing in my second rental property. My question is assuming he loans me 30k in a 100k property, what options does he have to actually make money?

Treat it like a mortgage and pay him PI until I can do a cash out REFI? Do most investors do these kind of loans for short term? 3-5 years or standard 30 year amortization? What is the average rate I should be charged to be fair. 

Pay him flat fee for the loan of 30k that has to be paid back within12-18 months?

He has never done this sort of investing before so I want to make sure it's good for both of us.

How would the deal be structured if he actually invested in the project if it were a long term buy and hold rental? 

I searched private money on the forums but i could only find information on how to find private money, etc... 

Any advice is appreciated. I'm basically looking at options he has as investor.

Thanks,

Tyler

New Member here from Baltimore. I became an investor when my primary residence since 2009 did not sell when we listed it October of 2015 so we started renting it February 2016. During that process I found this website and am 30 episodes deep into the podcast. Great information through both and I am now looking for a second investment property to buy and hold.