All Forum Posts by: Steve Vaughan

@Lyndsey Keller , one thing I considered when I converted my primary into a rental was tax-free appreciation if I were to sell.  If you occupied it as your primary for 2 years and have rented it only in the past 3 years, you could sell for a tax-free gain. Once the 5-year window closes, there's no tax-free gain for ya. 

As far as refinancing a rental, the allowable LTV is lower. You are probably ok only owing $60k, but they will probably only allow an LTV of 75-80%. The rates are a little higher as well. If it saves you more than 1.5% it may make sense. Got to divide your closing costs (say about $3600) by your interest saved (not much on $60k) and see when you would break even. May be 3 years, Not worth it? It's a huge pain. I wouldn't for a 3 year payback. Just pay it off if you don't decide to sell for the tax-free gain!

Welcome @Darren Mills from a few hours east (on the sunny side:)! 

"Sure we can take care of that, too."  Then an extra $500 is on the final invoice.  Lovin' the lack of info, GC!

Welcome to the site, @Ian McDonald !  I like your plan & kinda did that myself here in the Wenatchee area.  See ya around!

I would sell the car for sure, no question, today!  There are used vehicles out there that won't have the repair headaches you fear.  That thing is a boat anchor (a pretty one, but an anchor no less).  Think of the why.  Think of what that car is costing you in opportunities. Save up the difference you need to get you right side up in the car and get a $3k car.  Drive that to your real estate investment.  I drive a 20-year old van that squeaks all over the place picking up dozens of rents every month from people with nice car payments.  Make the choice and change your life!

If the property makes sense, I would probably by title as joint tenants with % ownership listed and have a JV agreement for this specific property. LLCs are great on commercial property, but cumbersome for anything under 5 units like @Tom S.  points out. 

With so many things being 'new" - just moved there, new job, etc I would be cautious as well.  I like your idea of a double deposit or obtaining a last month's rent at move-in.  Do a last month vs 2 months pre-paid.  Let us know how it goes @Yulia Kaygorodtseva !

The house looks great @Nicholas Moffett !  Don't feel bad about the $37 profit.  You were 'paid' for an education!  Some have done all the work you have and lost money!  I have done well in the 7-10 unit space so I concur with your thoughts of going that direction.  Less competition and more creative sellers! Good luck!

Thank you for the clarification @Account Closed !

Like @Jeremy Tillotson points out, you get the history and potential pending problems.  It may work fine, but the risk is there that they burned a contractor, tenant, or associate in the past and you will have to answer for it.  You'd be like, "What?! I've never even met this person before!" Doesn't matter.  They are suing your entity. Start fresh @Alexander Merritt !