All Forum Posts by: Amanda W.

Thanks all - I really like some of the ideas that are being used in Connecticut.

My big concern is she is month to month - if I work out an arrangement she could decide to skip and not renew her lease and likely won't make any deferred payments.  If she were longer term my ingoing plan was to defer across the remainder of the lease depending on the number of months left.  However, with her month to month status I feel compelled to compress relief to 3 months or when the quarantine / shelter in place lifts, whichever is sooner.  

Good morning - posting this as I'm sure many of you are experiencing this -

-Great tenant in Philadelphia - in home since 2015 - 100% payment with no gaps in 5 years, home in great shape, rent $1,000 month.

-Rent due on 4/1

-Tenant texts me on 3/30 asking whether there are any "adjustments on rent"

-I sent her an email with the suggested letter on Bigger Pockets, with resources to help her pay rent, and requested she provide what she can pay and for letter from her employer proving she is impacted.

-I got a letter from her employer on 3/31, saying she is employed but hours have been reduced.  I called the manager who verified the info in the letter.   The tenant works as a mobile specialist at a cell phone store for a major carrier.  

-My partner knows someone in HR at this cell phone company who shared that employees were still being paid at base salary but without commission and they suspect the tenant is being dishonest

-Tenant responded on 3/31 she can pay $300.  It's April 3, I still haven't received payment or see one starting (I use Cozy)

How would you manage?  

I am thinking of a rent deferral plan but not sure how to structure it - I don't want to be "out of the money" more than my last month rent collected ($1000).  

Tenant is on a month to month lease.

InvestHER from Philly...2 properties rehabbed and rented, house #3 just purchased via short sale using bank loan in rehab mode, 4th under contract, trying hard money for the first time...

My goal is to increasingly try to use OPM to fund purchase and rehab while build the credit of my business (separate LLC).

Opened up business account in 2015 with major national bank I won't name, under my LLC and manage all rental expenses and income with said account.

I used cash savings and a BRRRR to fund my first two rentals and rehab, and at the advice of a friend, went to this local bank now that I have some activity under my belt to request a line of credit against the business to fund my rehab budget and carrying costs like insurance, etc.

Went to bank two weeks ago, sat with manager for an hour, explained my path, and requested a $75K LOC against the business. He pushed me to consider using my primary residence (not interested, burned in 2008 crash) or my second active rental. Not interested there-want to save that to BRRRR another property. As such, applied for LOC against the business.

I have a W2 job with multiple 6 figure income, 20 years of continuous employment, great credit, and my rentals cash flow nicely with equity appreciation.  Thought I had a shot.

Well, needless to say, I get a cold letter from said bank, denying my application for due to "Unacceptable Business Purposes"...?! 

Gee...sorry for trying to borrow to sell crack cocaine...:)

No followup phone call, no "how we can help, sorry, you can't get $75K, but how about $25K"?

I'm thinking of taking my business from this bank due to total lack of customer service,  but before I do, I have two questions:

-What is the best way to achieve my goal? Is there an investor friendly bank I can build a better relationship with?

-If a LOC against the business is not achievable, what is the best vehicle to borrow carrying and rehab costs? I'd really like to preserve my equity in my homes to BRRRR in Philly!

Thanks

This is great advice @Chris Mason - so I didn't know the occupancy one year promise, but knew of the occupancy requirements and have zero interest in committing fraud.  What is interesting is one reason I threw Delaware in my search is I live in NJ but have worked in DE for 15 years with a one hour commute.  

I have split custody of my daughter and the days I don't have her, I stay in DE (with my boyfriend).  I have to maintain a house and time living in NJ due to child custody and a stellar school district.  Does using the multiunit as a second split home due to these circumstances fly?  The lender I spoke to told me I would have to write a convincing letter proving occupancy such as "showing that my NJ home is up for sale" which I have no desire to sell. . 

Hi bigger pockets family! 

I have two single family homes in Philadelphia, currently rented, so far all good.  Funded purchase and rehab largely with cash.  Value of both $280K, I did pull $75K out of house #1 to fund purchase and rehab of second one.  

Now looking to leap to my first multifamily with OPM in Philadelphia or Northern DE.  Tri or quad.

Talked to a lender, getting advice "there's no such thing as less than 20% down", 6% interest, Fannie Mae requires 4 points at closing due to multifamily.  

I am nervous about pulling more equity out of my first two homes and want to get a mortgage with as little money down on the multifamily. 

For those who have invested in multifamily, is this what you are hearing?  Is there a better option?

Thanks!

Amanda