All Forum Posts by: Peter Fokas

I am in the process of getting a HELOC which I will then use as a down payment for my next investment property. My plan is to get 5+ units and get a commercial mortgage. Is there any "seasoning" requirements for down payment funding. Should I take out the money from the HELOC and put it in a bank account, wait 2 months and then start looking for a investment property? I know for conventional mortgages 60 days is standard but not sure for commercial loans.

One prospective tenant contacted me from the UK inquiring about my rental in NJ. How do I screen someone that is outside of the U.S.?

The calculation becomes a bit more complex as you have to calculate the cost of two loans now. What sort of rate you looking at for both loans. Also does the loan against your first property impact your debt to income ratio which will determine you ability to get the second loan. 

Done !

plenty of websites now. angieslist, homeadvisor, thumbtack.  In general get 3 quotes, make sure they have a license, insurance, etc. the contractors listed on these websites are supposed to have license, insurance. etc.

I would recommend not taking on the additional risk of UST. The main problem is if there is a leak and soil is contaminated. This will then require EPA involvement and the costs to clean up soil can be significant.  Request seller to address this by removing UST and let them remove this risk instead of transferring the risk to you. 

Cap rate is important if you plan to get financing. I know for my 6 unit in Newark NJ the appraisal valuation was done based on the rental income and the miminum cap rate to back into the appraised value of the property.  So what appraiser's deem appropriate cap rates for the area will determine how much financing you can get.

Who cares what other people say? Focus on the important things in life. Do not stress the trivial stuff.

Does she pay rent? Talk to her when she pays the rent. If she does not pay the rent start the eviction process. 

Do you turn off your furnaces for the summer? My tenants pay their own heat so this has no impact to my expenses but have been told turning off ther furnaces in the summer may extend the life of some components of the furnace. I did find a post on the internet whereby one person claimed that turning the furnace off in the summer might create more maintenance problems than less.