All Forum Posts by: Ashley Kehr

Hi Miguel. Usually an FHA loan has a lower interest rate than a conventional loan. It wouldn't make sense to refinance to a conventional. For an FHA loan you have to live in the property for one year then you can rent it out.

My kids are still young (3 boys under 5) but I have slowly started to introduce them into real estate. When we drive by a property, I talk to them about how we own that house and someone lives there that pays us money. I've taken them to some showings with me to rent the units. My five year old has helped sweep a unit before a showing. I am interested in different ways you have taught your kids about real estate investing and how you have had them involved in your business? They currently think I only work to buy legos!

I took @Brandon Turner's direction and have purchased a duplex for each of my kids. By the time the kids are ready for college I can re-finance each house to pay for their college or a business they'd like to grow (For all my financial advisor friends out there,  I do have a 529 plan for each too). I'd like for them to learn some responsibility as they get older, the power of real estate investing and I'd like to be a "Rich Dad" to them.

Even if it's things for when they are teenagers, I'd be interested in hearing! 

I would suggest small community banks. If you do your banking with them they are more willing to do a loan with you. They also feel more comfortable lending on a property in their area.  Plus they can be creative with financing.

Sorry, I misunderstood you already had a specific house in mind. You could go without a realtor but I would also recommend a real estate attorney. I've never done a lease to own but have done early occupancy. It gives your the ability to get into the property before closings. I paid the seller market rent to have access to the property to get rent ready. Then on closing I was able to start showings right away on the property. A lot of seller's shy away from early occupancy since there is the concern of not closing.

I also do electronic signing and have them initial each page. Their lease is sent to them ahead of moving in so they have time to review it if they choose. I agree with @Nathan Gesner that the lease will still be broken even if you read it word for word to them. Now that we do it electronically the lease is saved for review in their tenant portal but before that I don't think many tenant's even saved their copy of the lease. 

We contract out maintenance only and the biggest issue I have is maintenance not responding in a timely manner when they will be scheduled. My tenants really appreciate a response (maintenance requests are submitted online) within 24 hours saying we received the request and when it will be scheduled. Even if its approximate. I can't stand when no one contacts the resident then I get a follow up email saying they haven't heard from anyone. That is just one of my pet peeves with our maintenance company. Also very good property management software will help you. AppFolio and Buildium are the two that I like.

Hi Rasiel. The seller pays the real estate agent fees so you wouldn't be saving any money. Yes, you can co-sign. You can get an FHA loan with low interest and low down payment and not be a first time buyer.

Hi Austin. I think it is important to have reserves before purchasing. I like to keep 3 months expenses for each property. I then add 10% of rent each month to the reserve to save for capex and repairs.   I also have W-2 income and can cover expenses with that income if necessary. It is a personal preference as to how much you want to have saved but I never think its a bad idea. If you are purchasing using conventional financing the bank will require you to show proof of funds for reserves. I don't know if every bank is the same in how much they require. You could check with a local lender. Good luck with your first rental!

I would recommend the HELOC for at least one property. I have one on a property that I use to make cash offers. Once I purchase I put a mortgage on the new property and pay off the HELOC. That way I am not paying interest on the money while I am looking for the next deal.

Hi Russ. I use buildium. Tenants can submit maintenance requests online. Landlord and tenant are able to update at anytime. You can also put a status to each such as waiting or in progress. The maintenance requests can be emailed out to vendors too. It has worked well for me plus it has a lot of other features for property management.