All Forum Posts by: Account Closed

@Matt Dickens I know a local contractor who specializes in these kinds of adds. Frankly, the hurdle you’re going to run into during Covid is the inspector and their availability so beat that in mind when calculating your turn time and holding costs. You’ll find plenty of places in Phoenix where people are making a habit out of turning a carport into a 3rd or fourth bedroom.

@Weston Hinton glad to hear it! 😅 Best of luck to you on the next one!

@Weston Hinton I hope you’re not openly admitting to mortgage fraud in an online forum. If you received the loan under the guise of owner occupancy and turned it into a rental before the 1 year mark, you very well might be.

Check the fine print on your loan docs. You’ve essentially skirted the need to put 20-25% down as an investment loan and your lender may not take too kindly to that.

@Tucker Cummings some 401k plans allow you to borrow against them up to a certain percentage without paying a penalty or tax on the borrowed funds. This loan isn't reported to the credit bureau so it doesn't affect your DTI and you will have to pay YOURSELF interest on the funds borrowed in repayment.

I’ve done this twice and it worked out perfectly for me. It allowed me to leverage myself dramatically faster to get started. Risk/Reward is on you.

@Mason R. I think Ryan covered it. You’re looking for a buyer who will do a leaseback. One thing to add is that the lease back term may be dictated by the terms of your lender. Most lenders require that the buyer purchasing the home as an owner occupant actually move into the property within 60 days, which further limits your buying pool.

Obviously anything that limits your buying pool is typically detrimental to competition and in turn, your offer action.

@Chuck Gross $200k is not realistic in the Phoenix/Tempe market. We are at peak prices right now. I just ran a search of the entire Phoenix metro MLS for that price point and there is not a single result. As a realtor I sometimes have to deliver bad news. This is one of those times. Best of luck in your search!

@Greg DeFeyter as others have said, you can skip the LLC until you have more assets to protect. You only need to contact your insurance agent and rerun your coverages on a landlord policy.

My personal experience in the Phoenix market is that if you have a furnished place in a good neighborhood which allows pets, you’ll never go vacant for more than a week. It’s a rare combination.

I have 3 rentals in Phx with a 4th and 5th both under contract. It’s a great spot to be right now. Good luck to you!

@Matt Whitney I’m sorry to hear about the situation. I just wanted to point out that at 55 years old he is not yet eligible for a reverse mortgage. I wouldn’t suggest this route to anyone who has ANY other options personally anyway. I hope some of the other suggestions here will sort him out. Happy holidays!

@Jonathan Bowen

Long time listener, first time caller.

Is now a good time to talk about the 600% increase in the value of eXp stock and their equity program? Or are you still upset about being “hit on”?

@Brent Coombs as I mentioned before....We are talking about stripping the equity off ONE home that I own...not my entire portfolio...or my savings. I’m looking for unconventional answers which appears to have upset quite a few people....

I’m fairly confident in my own instincts, they’ve served me well to date. That said, one can never have too much cash set aside. Thus the entire reason for the discussion.