All Forum Posts by: Christopher Phillips

Yes. You can get partners that will use their credit but your cash. Or a combination of their credit and some of their cash as well.

Don't forget that you'll also need to account for closing cost and rehab costs for the purchases. Even recently rehabbed rental properties still might need some money put into them.

The good thing about investing, there are many scenarios to finance a project.

@Kevin Paez

You won't be able to get a loan to buy and hold (rental property) without w2 history. At least, most banks won't want to get involved. I have this problem with buyers that get paid all cash.

If you're looking to flip a home, you can get hard money loans without W2 history since the loans are based on the deal and not your personal credit history. They just want you to have some money in the project, which you will with the cash you saved up.

@Dominick Marschall

Legal? Not sure why that's a question.

Appraisers need details of the property. They can either get them from a previous report, the contract, or the multi listing service if recently listed.

No, it doesn't bias a report. Reports are going to based on recent history and properties within a certain distance.

@Rick Novotny

It stems from the fact that housing is a scarce commodity these days.

@Rick Novotny

This just went through in NY. Not much can be done about it. Many states are moving in this direction. It's causing a lot of confusion here.

Analysis is based on cashflows. Mortgage payments are cash payments going out. There is no assumption of equity until you sell.

If they are fee free, then take advantage of them. But you'll still need a spreadsheet or Quicken to track things for rental unit reports and tax returns.

Holding costs are everything it cost you to hold the property until you sell it. Principle, Interest, Taxes, Insurance, Utilities, Security Services, potentially HOA fees.

Some people do interest only loans, so they wouldn't need to include principle.

What's the question?

@Evan St. George

There is no reason to have so many accounts. You'll fee yourself to death. Literally, the only benefit is for tracking, which can be done with a spreadsheet or something like Quicken.

But, since you already have them set up. Use one checking account for the rental property - all flows for income and expenses should go through that. Keep your personal account for yourself. Again, there is no benefit other than for tracking. If you're paying fees for all these accounts, you're receiving a negative benefit. If you're getting free checking, then it doesn't matter so much.

CapEx is a tax return thing. Doesn't matter where the money sits.

LLC doesn't do much either. You should have property insurance in case something happens. An LLC only protects your personal finances from creditors if you can't pay. Doesn't prevent your tenants from suing you because they slipped on an icy sidewalk.