All Forum Posts by: Billy Smith
Billy Smith has started 12 posts and replied 701 times.
Post: Replacing my 9-5
- Shawnee Mission, KS
- Posts 711
- Votes 311
Quote from @Theresa Harris:
Honestly if you want to invest, you are better off having a 9-5 that will give you a good, regular income and allow you to buy rentals. That is what banks are going to look at when they lend you money for a mortgage.
Agree 100%
Post: Seller disclosure fraud
- Shawnee Mission, KS
- Posts 711
- Votes 311
I know this is too late I do my own inspections #1 on my list is a run a camera down the house sewer line to the main . Get 3 estimates, some times they will only replace to the point of proper old sewer line only that can save money BIG time .They will add a clean out next to the house one out farther where they stopped the new sewer line replacement .
As far as suing any one on such a manner need to figure out what the legal cost are plus what percent chance of success then decide of you want to roll the dice unfortunately this type of scam happens a lot now a days .
Post: What to do with $3 million in equity
- Shawnee Mission, KS
- Posts 711
- Votes 311
Ben Mallah in Florida has been doing this strategy of getting commercial loans to live on or deploy the capital how ever he wants . He has a You Tube channel it's fun to watch for a while .
Post: Neighbors trees leaning heavily toward my rental, one already fell and damaged RV
- Shawnee Mission, KS
- Posts 711
- Votes 311
You need a certified arborist to write a opinion about the tree then send that to the owner of the tree .
Post: Treating Mold in Crawlspace - Lumber Koat?
- Shawnee Mission, KS
- Posts 711
- Votes 311
Quote from @Matthew Defore:
I had a busted sewer pipe in there, which has been repaired and everything has dried up, and appears to be staying dry. I don't see where any rainwater is coming in, but I am going to crawl in there after the next rain to verify.
Other than that, am I missing any sources of moisture to address?
Sorry I should point out you need to keep gutter discharge water away from the foundation at least 10 ft . Look at the lay of the land any issues that need addressed to keep water away like the front yard etc.. does the house have dirt up next to the foundation keeping water away from the crawl space ?
Post: Treating Mold in Crawlspace - Lumber Koat?
- Shawnee Mission, KS
- Posts 711
- Votes 311
I would make sure that crawl space is vented proper, may need a small commercial grade fan not sure . Then buy the proper chemical to spray on that will take research to figure the proper type .
Post: Gifting a House
- Shawnee Mission, KS
- Posts 711
- Votes 311
I would talk to your tax person make sure you do this right for both people on this transaction .
Post: Treating Mold in Crawlspace - Lumber Koat?
- Shawnee Mission, KS
- Posts 711
- Votes 311
The first part of Mold remediating is stopping the moisture issue until you figure out that part don't bother with step 2 .
Post: What to do with $3 million in equity
- Shawnee Mission, KS
- Posts 711
- Votes 311
Quote from @Rob K.:
Quote from @Michael Gonda:
Hi everyone
My business partner and I have 25 - 30 single-family homes and multi-tenant properties.
- All of the homes/properties have been renovated and have been in service for a number of years (meaning we have a strong history as successful property owners/investors)
- All of the homes are higher-end rentals in very good neighborhoods
- All but 4 homes are completely paid off with no mortgage overhead or LOC debt
- All homes have a very consistent rental history with very low vacancy
- All homes are turning a profit and our pre-door numbers are very good
Because the homes are almost completely paid off, we have a good deal of equity in just sitting around. We would prefer not to sell anything off at this time and plan on owning these properties for a few more decades (although we have considered selling some for various reasons).
A rough back-of-the-napkin calculation yields about $3.2 million in available equity across the entire portfolio.
Q1. What would you do with that equity?
Q2. How would we go about getting cash from the equity?
Q3. With interest rates as they are, and knowing they are probably going to start dropping over the next few quarters, is it best to wait on any kind of finance for a year'ish or are the rates not going to come down enough over that period to make a huge difference?
Thoughts?
Thanks in advance
You know, I used to worry about an ever increasing deterioration in income to equity ratios but as I get older, I am more and more comfortable with dead equity. Yes, I can take cash out and try to invest in higher return projects, a sort of carry trade, but the reality is that increasing return on equity generally involves more risk.
So If I were you I would congratulate myself on success and question do you really want to take on additional risk or incur not insubstantial transaction costs to transition from what you have. Putting credit lines in place might make sense to have the capital available if a sure fire opportunity comes your way, but I would learn to get a certain level of comfort with paid off mortgages too.
Agree enjoy the free cash flow why take on extra risk ?I like paid off SFH in a large metro area works for me. I have one mortgage left when that is paid off I may look at another SFH in my zone of knowledge .
Post: New to the industry
- Shawnee Mission, KS
- Posts 711
- Votes 311
It can take a while for action to start .I read on the topic for 2-3 years before I made a move into S.F.H rentals .