All Forum Posts by: Account Closed

Killed it -- congrats! So it appraised around $43,400 and you refinanced at 75% LTV?

Very nice! Do you think they would appraise higher now with the rehab complete? Numbers look solid.

Congrats -- the detail on the steps looks cool! 

Hi Jason,

What are the rental prices in those zip codes for that type of house? Check out rentometer.com, craigslist ads, and definitely a local property manager to get the market rental rates along with vacancy rates. For each of those zip codes I'm sure there's good and bad areas. So "good" and "bad" are subjective. You might want to narrow down your search to certain indicators like crime rate, school ratings, proximity to cafes/restaurants/shopping, and healthcare facilities.

The only way to know if the rent roll would cover mortgage and expenses is to determine the rent. 

A good way to gauge a market or MSA is looking for employment and population trends. Are people and employers moving there? What the average increase/decrease of employment and population for the last 3-5 years? For employers check if one industry owns more than 20% of the entire job market there. For example, if a military base is the largest employer, what happens if that base moves or closes? 

Once that is figured out, you can look into the demographics of the prospective tenants in Lynchburg. If they are mostly families, you'll want low crime areas and good school districts. If they're young workers, you'll probably want your rentals nearby transportation hubs, cafes, and restaurants. If they're older, maybe healthcare facilities are of greatest importance.

I think the most accurate place to understand landlord-tenant laws will be from the state government statutes. If it helps, this site provide an overview: https://www.nolo.com/legal-encyclopedia/overview-l.... I'd dig into the details after reading thru this site. 

Yes, that is essentially correct.  You will probably have some closing costs and/or holding costs left in the deal.

Is this a SFH or MFH? You might be able to get 75% LTV with SFH. Also, you can check with commercial lenders who might lend higher LTVs -- the rate is going to be higher, but you get your funds back out.

Hi there! First of all -- congrats!!!

I typically have a separate account(s) for my rental properties. I have a checking account where I accept rental payments and fees. Then I have a non-interesting bearing account to hold security deposits. Lastly I have an interest-bearing savings account for vacancy, repairs and capex.

I keep these rental accounts separate from my personal and business accounts. Not sure how many years of income your business has, but the bank might require your SSN and the biz EIN to open the CC. In either case, the card is probably linked to you personally. But you can keep it separate and only use it for biz expenses and make payments to CC from your rental checking account.

+1 for starting a relationship with a good local bank -- they might have more flexible options for you down the road. 

Hi there! Generally, you're looking for certain market indicators to determine if a market is a "good" market for you. This includes employment, population growth/decline and other indicators that you'll see on the census report. Huntsville is a good-sized city so there's lots of different submarkets there. For each of the submarkets you can look for crime rates, school ratings, amenities such as cafes, shops, and restaurants to determine if it's a good submarket.

What is your investing criteria? Also depending on the area, your customer/tenant demographic might be young adults and schools might not be as important as a solid coffee shop, or young families that *do* care about good school ratings, etc...

My HML asked me to create a new LLC or use an existing one for my current rehab project. We also had a short deadline for closing and going thru the process of a new LLC paperwork and potentially chatting with an attorney would require extra time (that we didn't have). So I used my existing LLC and bought the property with the existing LLC.

Hi @Stephen Aki -- reach out to @Kim Meredith Hampton. They have a solid PM company. I'm not sure if they handle vacation rentals, but they will definitely have a recommendation if they don't service vacation rentals.