All Forum Posts by: Agustin Conti

Quote from @Pete M.:

Just to confirm, the HELOC would be against your primary and used to improve the same property--right? If so, that interest could also be tax-deductible. That's the one scenario for HELOC interest deductibility that the TCJA left in!

 Yes I just realize this..I need to "crunch" the numbers to have an idea of how much I would pay every month..if I take..like $50k every three months 3 times..I could not find an heloc calculator that allows me to calculate precise monthly payments..Any ideas?

Quote from @Bruce Woodruff:

#1 - You are not required to have your driveway in perfect condition, it's totally up to you as to how nice (or bad) you want your property to look.

#2 - As @Theresa Harris said, just pressure wash it if you do anything, if you apint it, you'll be painting it again in a year or two.

#3 - Never let a tenant do anything to your property. Not only are they not professional tradesmen, but consider this - what if he slips and breaks a leg while working on your property? He is technically your employee while working for you.....do you have Workers Comp? Liability Insurance? Payroll Taxes? Get ready to be sued by the tenant.....and worse by the State/County when they find out...

 Thanks, this is the type of answer I was looking for.

Regards.

Chris Seveney, you wrote

"also yes you are to maintain the property but also cosmetic components are not an absolute requirement to get fixed"

So in this case, is the patio and or walkway in need of repair? is this to be determined solely at my discretion? 

Quote from @Tim Baldwin:

Having tenants do work on your property is generally a bad idea. But if you decide you are going to permit it, you need to have a contract drafted that protects you in case he is negligent or doesn't comply with the terms of the agreement. It's a risky prospect, so be careful. As for costs, you can decide what you want to do there, but again, put it in writing and signed by the tenant.

Thanks for the advice,  but this is not what I am asking. I am asking for the third time in this forum: Tenant asked if he (or someone) could paint the patio and the walkway because of what you see in the pic. Do I have to do this (pay) as an obligation ?

Hi, thanks for the quick and useful responses.

The driveway is already painted and the paint is fading away. The front has also a painted driveway that seems to be holding pretty well.  I appreciate the suggestion of taking the paint, it is an option. I agree and won't let the tenant do the work. The main question was. Do I have to pay to clear /paint or fix the driveway? as you said it looks cosmetic. The Patio has tiles that show some wear and tear but certainly does not need to be painted or at least I won't paid for it. So again Do i "have to" paid for this or if I pay it would be a nice thing from me? I want to know what my obligations as landlord are and then make a decision if I want to go above that line in any capacity by paying or sharing the cost of something that I am not required to do.

Regards,

The tenant asked if he could paint the backyard patio and driveway (we have a rear entrance for cars from the alley). I said yes, and he mentioned that he would deduct the cost from the rent. I replied, asking him to send me pictures, and I would get back to him.

My understanding is that if the area is in bad shape, I need to maintain it. However, since he asked to paint it, I assume he wants to take the initiative. I will, of course, need to approve the color. Should I cover the cost fully, partially, or not at all? Attached are the pictures for reference.

Thanks,

Quote from @Corby Goade:

HELOC is almost always the best option. Rates are variable, so it's very likely that those will come down soon. Also, they don't cost anything to close and you don't pay a penny unless you use them. There's no cheaper product- don't let the rates throw you, you'll save thousands with a HELOC.

Good point here in having zero cost associated with the loan. If managed wisely (like everything else in life) it can be a great tool to boost growth. Thanks!

Quote from @Raymond J. Rodrigues:

@Agustin Conti, HELOCs are better than personal loans or credit cards. You won't find lower interest rates anywhere else. At the end of the day, the HELOC will you make you money in the end, not lose you money. So what's the big deal?

There is no "big deal" here. a High interest rate doesn't bother me as long as the numbers work for me and I end up making more money which is what the numbers are predicting will most likely happen.

"Heloc is prime plus 1% or 2%, that is today's rate. Personally, Heloc

is the best loan possible. You are in control you put the rent money in

and that money generates 9% compound interest"

HI Luis, what is prime and what do you mean rent money? there is no rent involved here..and how it will generate 9% ?

Thanks for the ideas folks (401k, cash Advance on CC) but not only I am not comfortable with these options but I would need to borrow more than 50K. The plan I am evaluating is, and this may work well even with a very high HELOC rate, since we need to fix a few things (renovation) to take the opportunity of having a mess in the house and go for a bigger renovation that will include an addition and overall change of the front of the house. This will be around 150k, but down in a 5-6 years this project should help triple (or more) that amount invested when its time to sell the house.

I would use 50k from selling stock and the rest from the HELOC, starting paying right away, up to 1200 per month or so. The "less" option would be to "just" fix things at around $20-30k then down the road spend about the same when its time to sell the house to make it look the best and not get the extra value that a bigger project would bring and not enjoy a nicer, fixed house until then