All Forum Posts by: Charles Marchiondo

Yeah, don't do that.  

If you want to help him, buy a separate rental that makes sense for you and give him your profit money if you want to pay the rent to his landlord or save or whatever.  If the day comes, and he is able to actually buy his own place, you can always sell him your rental at the price you paid for it years earlier, just to be a nice guy or whatever.  Odds are great that will never happen, but you can always encourage him and remind him that your deal stands.

Best way to help him is to teach him how to do it himself.  If he's not that kind of guy, then he won't succeed even if he wins the lottery. sad but true

 Yes most will but some might require a personal guarantee but that's no big deal.  The house is their collateral so pretty simple.  Some will have no cost 60% ltv and another might go 80% but charge points or higher intrest, etc.... 

There are many ways to get out of a lease if it is specifically written to be landlord friendly. 

There are some very good discussions on when to sign a long term lease and when to stay month-to-month.  Study up on this before getting locked into another lease.

I think @Sarah Rune hit the nail on the head.  

Unless the HELOC you have directly relates to the property, you shouldn't calculate that into your profit/loss. i.e. if you bought a car with it, that has nothing to do with the viability of the deal or the cash flow of the property. Definitely shop around for better rates. Take a look at Bank of the West or 1stbank. I've done low rate/low cost HELOC and refi recently with both.

Definitely take over mgt yourself if you can to save the coin. It isn't that hard.  My grandpa died last year at 90 self managing 13 single family homes and I think he worked only a few hours a month at it.

Hope something in here helped.  To be honest, I think you're in better shape than you originally thought.  Good luck!

The cash flow looks good. If you can afford to keep it and continue buying others like it, that's what we do. When you run out of cash, get some HELOC money pulled out of them and go again. When the deals dry up (like they have in Denver), pay off the HELOCs and wait for the next cycle.

I'm in the same boat.  Private lending or stockpile cash till the next correction, I guess.

I agree with @Matt M. 

The most reliable way to get comps is to make friends with a broker and ask to become a "broker associate" . It costs him nothing and you will get your own login to MLS to get reliable data.

 Frank,

I'm not sure about 1031 commercial.  I've only ever been involved in residential.  Our trouble now is finding good stuff to 1031 into.

I was going to start a new post about something similar but these replies are good. 

Since the massive increase in prices over the last 4 years, I have been considering cashing out.  Properties that we picked up for $50k-$60k are going for $150k-$200k, a 400% increase, while rents have only gone from $1,000 to $1,500, a 50% increase.  But who wants to sell and pay 25% taxes and even then, what are you going to do with the money before the next buying cycle that even comes close?

Bank of the West has been good for us in Colorado.  Not sure if they operate on the east coast.

A HELOC is just like any other loan against real estate. If they can't ensure the loan is able to be repaid, they might be reluctant to loan. I've never looked into it, but have you considered private lending sources or hard money loans?