All Forum Posts by: Alex Forest

@Mikael Winkler Yes, it is the investment rate, and yes it is pretty remarkable.  It is actually something like 3.9999 so 4% really and not point free. Will see though, this was the rate at the time the process was initiated (working with broker), it has not been 'locked' in quite yet so may vary up or down ever so slightly. Should be very close to this though. Unless something big happens to cause a major move.

@Alexander Churchill  I know right? Those are good rates. I'd be going from 5.5 to 3.99.  I was looking for a way to capitalize on the low interest rates and this is the property that stepped forward to volunteer. It would be nice to recapture the original downpayment and cash put in, almost like getting a 'free' house, with the exception of time and energy expended. You by any chance also replace a water heater? Lol. 

@Alexander Churchill What kind of rates would you be looking at with the new refinance loan? Funny, I have almost an identical situation, dec 2018 purchase, new roof, and looking at cash out refi. With the rates as they are, I was quoted a 1.5% lower rate than dec 2018, so in terms of cash flow, I think it will be only $100 more per month after pulling out $35k roughly (still leaving several hundred in cash flow). I like the idea of recapturing the cash put into it, and having more in reserves or for use on something else.  Fyi, on sept 1, Fannie will start charging 0.5 bps on cash out refi apparently.  Not a game changer but an annoying expense. 

I think I'm going to give Innago a go (see how I did that), after taking a look at several of these platforms. I'd recommend anyone who is considering or evaluating one fresh to sign up both as a Landlord and as a Tenant and give it a test run. I noticed a difference. I like the property management focus, functionality, tenant app, communication style (and lack of marketing by the company to the tenant).

Originally posted by @Tanvir Sattar:

@John Lanser If you want your money the fastest I'd recommend Innago. They send funds the next business day. 

Have you used the Innago software, how is it working for you and the Tenants?  It seems like a small company, which is ok, just wondering if there are quirks or if it works well and is robust.  I seem to be having trouble tagging multiple people in the same post, was going to ask @Andy as well.

Originally posted by @Account Closed:

We use Innago, which is free for landlords/property managers, and we love it! A simple Google search for "free property management software" will bring up some of the several options out there. One thing I would consider is if you only want rent collection services, or if you also want online lease signing and some of the other features out there. That can help you narrow now what software you choose, because they're all slightly different.

 Have you received feedback from the Tenants on how they like the software, or generally how it's working for them?  Sounds like it's working well for you.  After looking at a number of these, I'm starting to dig Innago's software and approach. I might do a trial run with it. 

There are a lot of great software suggestions and feedback on this thread.  I had been looking into options for a bit and have been hearing cozy come up often.  Cozy is getting migrated to apartments . com in mid 2021.  It will go away as a standalone and become a module within apartments.  The cozy site now suggests new users sign up directly on apartments instead. The 5 minute Landlord intro videos on each site are identical.  Does anyone have any qualms about it moving to apartments. com?  

I just signed up on the apartment site and did a trial run on each side as a renter and Landlord, and the first thing to come up as a renter was whether or not I wanted to receive notifications of new rentals that become available in the area.  The intro email to the renter once signing up for an account said "find your next home".  Somehow this didnt sit well with me.  Obviously they can search sites anytime, but I feel like I'm pushing other new rentals to tenants, which I do not want to do with long term tenants. It's making me double think the platform.  For instance, doesnt the apartments com business models benefit from movement and activity (applications, advertisement, leases, etc)?  Maybe cozy already did all this too, and it's a non issue.  But I also like the idea of just an online payment center and property management focus.

I would think the transfer of the Lease should be embedded in the Lease and/or purchase agreement.  I would read those carefully and there should be something there about transferring.  I actually handled it a bit differently and drafted new Leases prior to closing with the tenants and past owner present (that's a different story and thread from this one though). Also, if the security deposit was part of the Lease and sits with the owner, another piece to capture at closing.

Originally posted by @Joe S.:

Originally posted by @Nicole Heasley Beitenman:

If their lease is month-to-month, the seller should be able to terminate their lease without cause with a 30 day notice. What are the terms of the month-to-month agreement?

It was a two year lease that ended a year and a half ago. So My understanding is that it basically turned into a month-to-month after the fact. 

Joe, you made a comment that made it sound like you might not have a copy of the Lease yet. Not sure if that's the case or not.  If not though, need to make sure you do have a copy prior to closing and it transfers to you as the Landlord.  That may sound obvious, but worth stating as sellers can drag their feet on that. And I'm not sure how notice to vacate and evictions go without an agreement and the stated terms.  I made it a provision of the contract where either the Lease was secured to buyers satisfaction or it was delivered vacant. Having neither, would've led me to walk. The seller will provide it in those terms. Again, maybe a moot point if already in hand. Also, I like the comment regarding pro rated rent at closing, that is a clean way to capture it and move forward from there.

Originally posted by @David P.:

Im late to the conversation but i don't understand the problem. If it is a duplex (multi-unit) zoned it should just have 1 parcel and 2 units on one lot. My duplex I purchased back in 2010 was 1 parcel number and I got conventional financing. I pay property tax on that duplex for just that 1 parcel number. Every traditional duplex i see out here in socal is 1 parcel number if it is zoned multi-unit.

Im in escrow right now for a property (2 on 1 lot) but they are detatched condos (no HOA fees) requiring 2 transaction and 2 parcel numbers. They could actually be sold seperately but I am purchasing them together. So there are those cases too but they are not as common.

Another popular trend now is ADUs that are built on single family residence zoned. Lenders may have problems giving rental income for the ADU since the parcel number does not state multi unit. I think in that case it is up to the appraiser to state that the ADU can be rented out and that way you can get rental income for qualification purporses.

The issue mentioned above was the appraisal. Appraisers were having a difficult time finding comps. The area I referenced was low density.  Finding recent sales in near proximity that had two houses on one lot were rare in the area. They couldn't appraise each house separately and then add them together for a total. Even the county assessor got creative, grouping the square footage of each house together and reporting it as one.  If you have an area where that housing type is not uncommon, then comps should be easy to find and easy work for the Appraiser. There can be other issues with this type of setup that arise , but appraisals are mostly what was referenced above I think.