All Forum Posts by: Allison Winston

@Whitney Hutten I may be thinking about this wrong but we're thinking we have to get a conventional loan for the purchase price and find a way to get funds to fix it up. That's where the 401k loan would come in but only as a last resort (most likely not). Trying to talk to friends and family about partnership is a touchy subject. They are not interested in this type of venture.

@Michael Ohara so do we get a HML for cost of property AND refinance or conventional for cost of home and HML for rehab??

@Shawn Thomas we recently refinanced our home and took some equity in cash. This was before we figured we would get onto the business. Had we made ther decision before, we definitely would have cashed out more. Not sure if we can do a HELOC so soon after a refi.

We have found properties that we are interested in using the the BRRRR method but we have some issues....

1.) We don't have the 20% down payment (more like 10-15%) or rehab cost without dipping into 401k.

2.) We're afraid of HML as we're just starting out and doubt want to get burned.

3.) Credit score is great just don't have start up cash for the class of property.

Any and all suggestions welcomed.

Great question Kyle! When you inherit tenants, do you go by the original landlord lease or is that lease null and void once the property is sold? Do you have to keep the same tenants or is it legal to give then notice as Nathan G. suggested. 

@Jeb Brilliant we're seeing now that multifamily is very scarce here. We're broadening our search, type of home and price range.

That's a very interesting question.  Being new to this im strictly guessing....I don't think that would qualify the tenant to a rent reduction.  This is a situation beyond your control.  I can see if these areas were flooded due to negkect from the landlord.  Im sure this pandemic will cause many leases to include a clause for such issues we are facing today. 

I Noticed realtors doing virtual showings.  

@Ryan Kawash the roaches could have been something that traveled with the tenant, however, not really knowing where they came from, it may be best to call an exterminator to get rid of what's there.

This is an issue I was thinking about as well, especially with the location of the properties we will be renting and tenants. How do you resolve the issue if pests control (roaches and/or bed bugs) if the tenant isn't doing their part to keep it from happening? Is that something that can cause their eviction or does it depend on state law?