All Forum Posts by: Chris Davidson

@Garrett Pettit if you are looking at SMF rents will be added to your DTI to help with qualification. If you can't qualify with that I would look at stepping down a level and getting something you can afford and get the entire deal to yourself. Partnerships get messy when one wants out and the other doesn't and can't buy the partner out.

Also look at creative deals, but you will likely need more capital for that if you are focused on SMF. However sometimes a base hit is better than no hit at all.

@Sally Pearson reach out to the title company or closing agency as they should have a boiler plate agreement that should suffice for your needs.

Best of luck!

@Darien Miller-Gowan I don't personally know anyone in your area. However if I was in your shoes, I would hit up some REI meetings, a title company, find local investor facebook pages, see who is offerings creative terms on deals, or what ever it takes to find them if this is what your are wanting to do. You will puck up a few things along the way to trying to find who is active in your area and be able to contribute more to the conversation once you have it.

Best of luck!

@Shane C Tack it comes down to just managing it. They aren't meant for long term financing, you should be paying them off quickly. If you have some years left on your HELOC why not pay down a chuck and keep smaller amount in reserves that way your interest is lower. As it comes time to roll the HELOC work on building back up the Efund.
Finally some use up the whole HELOC when they shouldn't you have to manage your cashflow and make sure you can make your debt payments. As the rate goes up you need to speed up your paydown or look at shifting the debt to LT debt.

 You can pull it out and the roth shouldn't be taxable the conventional yes. If you are going to have a larger taxable event look at what makes sense via your tax bracket. Might be worth paying a bit of interest on a smaller loan then having a larger tax bill, and pay it off the next year if you want it free and clear.

You can also refi it in 10-15 years and not sell but pull out equity that wouldn't be taxable. Like others mentioned the SDIRA is a great strategy but you have to follow the rules or it gets messy.

@Eric Rubin I would reach out to a local or regoinal bank and look at getting a LOC on the 3 you own outright. Would be similar to a HELOC but could likely get in the 275-300 range depending on LTV. This would allow you to recycle it as its paid down, and now if rates drop so will your payments.

If you want to compound it more could you refi a few properties and have 5+ owned outright and shift debt around on the other 8? I would focus on the cashflow of your portfolio not just each property. If they are low value properties you might have to get a blanket loan to meet lending minimums but there is a way just reach out lenders and local banks and see what works best for you.

Keep up the good work!

@Dan MacDonagh House Hacking can be the biggest jump as you can get a solid property cut living expenses which I imagine are high living in AirBnb's, and put little down. 

You can also find multis that don't feel like apartments at all. If you want to dive deeper into some paths forward shoot a DM and we can meet up if you are still in town.

@Palmer Thomas what does your agent say? Run some numbers for some different scenarios you would like. Ex balloon payments, rates, amortization tables etc... Sounds like you all already have the downpayment and loan amount figured out just need to has out the details. Also how are the payments going to be handled.

The more you know your numbers the better you will be able to make something work. It is just different levers that do different things. Play with some amortization tables and adjust the terms around and see what works and doesn't work.

@Nick Hulme I would factor in crime as well. This will have an impact not easily seen on a spreadsheet but has a large impact. Some on your list might surprise you.

The more complex your strategy the stronger you team needs to be if you are investing out of state. A ok to bad team can turn a great deal bad, and a good team can turn an ok deal good. Work on funding and really planning it out if you are doing a BRRR make sure you have plenty of reserves or access to capital for when things take longer and cost more.

Keep after it and it will happen!

@Mike Jay you can ask the bank for a loan right away. It all depends on your situation if you have enough income and reserves you can get a loan.