All Forum Posts by: Aristotle Kumpis

Curious to know why you have hard money on rentals that you are holding on to. Or are you going to sell them before that loan expires? We work with a lender that offers an all in one HELOC. It's a pretty interesting concept if you qualify for it.

Like the others have already said, the HOA is the main problem. Not only will they be expensive on a condo and eat into your cash flow. But if the people who sit on the board are just not fun to deal with, it will make your life not fun. For long term hold, 5+ years, I recommend a single family home that does not have an HOA.

Hey Michele. Sorry to hear about your mom. It's not fun dealing with aging parents. I am going through that right now with my mom and step dad. It's a part time job now. You all must agree to the same thing or else you will just end up fighting about what to do.

Since your mom doesn't have it in a living trust, I suggest you do that right away. That outlines who gets what, and you avoid probate court. If you don't do that, once she passes it will go to probate court and it can cost a lot money. Plus, it can take 6-12 months or more to deal with. Then the court decides what to do, which is usually sell it. I recommend legal advice from an attorney. I have a great real estate attorney referral if you want it. 

Have you ever considered investing outside of the Seattle or Washington area? Townhomes or condo's are usually not the best for long term investment. HOA's are mostly why they don't work well. When tenants don't follow the rules, you get the notices in the mail from the HOA. Plus, association fees can be very expensive.

I just spoke with an investor this morning who lives in Lakewood Washington. And she was telling me the prices don't make much sense around the Seattle area so she is interested in the San Antonio market instead. We have brand new duplex's in A and B areas there for the same price as a $550K townhome in Seattle.

LVP all the way. Laminate will start to peel and buckle after 4-5 years. I had laminate in one of my rentals and after 5 years, I needed to replace it. I went with LVP and have been very happy with it. Tile is okay, but costs more because of the time it takes to install it correctly. 

One downside is that if they are already paying below market rent, you will probably never catch them up with rental increases. If you have rental history on them, that will also help. But the advantage of buying a home with a tenant is that you will already have someone paying rent when you close.

I'd recommend looking at Kathy and Rich Fettke. Kathy wrote Retire Rich with Rentals, and Rich wrote The Wise Investor. Kathy is a regular host on BiggerPockets Podcast, On The Market so you may have heard of her.

DSCR loans have rates right now in the 6% range. They are almost the same as conventional. So you should at least see if the cost of refinancing makes sense for you.

I know of a lender that can do a HELOC on a rental, but it's only in first position. Meaning that the property must be free and clear. But sometimes a small bank might offer them.