All Forum Posts by: Francois D.

lawyer and  CPA recommends the usual 2 comp. set up for holding and PM

Where there seam disagreement is what u use the PM company for: all expenses? Including tax, insurance etc ( 0 activity from the holding bank account) or use the holding to pay property taxes and insurance. 

What s your experience on this?

Not sure why Jon is so adamant, you can keep your llc in the state you wish and foreign register in Texas.

My understanding of Fannie Mae 2014 guidelines is that it will not allow cash out refi for investment properties 5 to 10 but will allow limited cash out refinance. You need 30% equity, 6 months reserve for each property and credit score>720.

Anyone having experience with such Refi?

1.Why do different brokers quote different rates, different dwelling values with the same carrier?

2. Why do insurance companies not offer multi SFs discount?

3. Why are portfolio insurance twice the price as getting many single policy?

I made the decision to buy newer homes (less than 7 years old).

I see most investors in Houston buying 20 to 30 years old houses, fixing them a bit and get better CF than on newer homes but will they not be eaten up by maintenance cost?

OK, taxes are a bit higher on newer homes but my feeling is that I have a good 15 years without a pb ahead of me.

So less than 10 years old or more than 20, what is your choice?

I made the decision to buy newer homes (less than 7 years old).

I see most investors in Houston buying 20 to 30 years old houses, fixing them a bit and get better CF than on newer homes but will they not be eaten up by maintenance cost?

OK, taxes are a bit higher on newer homes but my feeling is that I have a good 15 years without a pb ahead of me.

So less than 10 years old or more than 20, what is your choice?

One thing nobody mentions is that in 15 years the CF goes up considerably. So the CF is more over a total life of investment of 30 years.

For people with a job and planning to keep it, it is a better strategy, for people wanting to get out of a job asap then the immediate CF makes sense.

'You need to set up entities to protect you from lawsuit liability' is the general advice.

In my area, liability insurance cost $22 per year for 300k

Somebody needs to explain me, what can happen, which is due to my negligence and cost more than 300k?

Besides the 1 in a million times event which they talk on TV, I would be curious to know how many of you landlords have been in a lawsuit and how much it cost you.

There are thousands of landlords on BP so that should give us a ‘statistically relevant sample’

Thanks for sharing your experiences.

Most investors favor CF rather than equity build up.

The advice is get a mortgage as long as you can (30+years) so you can have a few more hundred dollars in CF.

This neglects the fact that you pay more than three times the amount of interests on a 30 yr loan rather than 15 yr over their respective life.

On a 15 yr, you build up equity (=wealth) quite fast, which is a cushion in case something goes wrong.

Paying a 30 yr faster is not equivalent to a 15 as the portion of interest on your main payment will always be higher.

Investing for equity build up is not as 'flashy' as for CF since you need to live with slim to none CF.

However you actually build wealth faster, hence that is my decision.

I wanted to start this topic to see if others invest like me as we seam to be the minority.

I am an investor from Texas and have a few loans under both my wife and I's names. I realized that we could double our fannie mae allowed loans from 10 to 20 by doing 10 for each name.

I called my current lender and they stated that assumption form are not allowed for investor loans (Fannie Mae rules). She was not so helpfull and did not give me 100% confidence. She said the only option is to refinance, is that so?

I do not want to take cash out of the properties, just want to free 'more Fannie-Mae Slot', hence it seams silly to pay full closing cost for just 'removing a name'

Has anyone been in that situation?