All Forum Posts by: Chad W.

I have never purchased a home through them, but one I purchased through Curt Davis here is managed by Premier Property Management, another Clothier company. With that said, I have to this point had VERY POOR service through Premier Property Management and would not recommend using them. The way they have propertyware set up is very frustrating. So much so that I am not even sure anyone on their staff really knows how to set it up or use it correctly. Communication from them is also poor, I always have to leave several voicemails or e-mails before someone gets back to me. This is all compounded by the fact that they recently raised their management rates. 

Thanks for the replies,

Yes, this would be a "want to live in house" which is not always in line with a "want cashflow" house. On the plus side we are downsizing to our next house which should help.

Ken is right, I was dangling owner occupied loans in my head when considering this and since I would be renting it out for who knows how long, we would not be getting these incredible rates.

So that is where Lynn's advice comes in for me. Yeah, it doesn't make sense to do it if we are just going to break even or potentially lose money. The down payment and monthly mortgage would be better off invested somewhere else until we decided it was time to make the move. Of course that doesn't address our fears that we may eventually be priced out of the market there in a few years, but that is just speculation.

Thanks,
-Chad

My wife and I have our hearts set on someday relocating to Asheville, NC. The question is when we are going to be able to. My son recently graduated high school and I am not in love with my current day job but I do take care of my elderly grandmother who lives near me. My wife is ready to go now.

There are two factors that have us considering buying a property now and renting it out until we can relocate. The numbers don't look that great but we might be able to break even if we rent. We are considering now vs later because two large breweries are opening in the area in the next couple of years and when they start building and hiring, I imagine prices could soar. Plus, interest rates.

Has anyone ever bought in a similar situation? Even putting the pricing speculation aside, but just bought something where you wanted to be before you were ready to be there? Thoughts?

Thanks,

Hello everyone,

I just wanted to give an update on this. My Grandmother was able to get a mortgage on our home in her name only. It was difficult but worth it. The monies paid off all of her debt (that was run up by a deadbeat cousin that lives with her) and the mortgage payment is actually less than the monthly minimum on the credit cards she paid off. So stopping here, I would already say we are at a win. With that said, I am paying her mortgage, not her. Now she is even that much further ahead on her fixed income.

A good chunk of the rest of the money went towards down payments on two rental properties in my name. These were purchased in May and are both doing fine. One of the tenants paid for several months in advance and the check the property managers cut is 10% of the size of the mortgage on the home we used to get the down payment funds. The other home is flowing nicely as well.

The remaining money is in a reserve fund which we are dipping into to replace the roof on my grandmother's home. We would not have been able to replace this roof without "expensive money" making the mortgage an even better deal.

For the safety nets, which I thank Jon again for putting in the fore of the conversation, I have the cash on hand to pay off the mortgage on our joint property where my grandmother lives should the need ever arise. We sold one of our cars and have reduced our monthly expenses to accelerate our savings and cash flow.

So thanks again to the bigger pockets community for your input and for sharing your stories.

-Chad

Hi Anthony,

I ended up flying out to Memphis and purchased two different properties from two different turnkey companies. So far everything is going well and my first two rents should be in the can.

I am not really interested in dealing with tenants and repairs so this should work out well for us. I am also not interested in making any aspects of the real estate business a full time job. As such I am not going to very active here as I probably have nothing to contribute save for possibly sharing my experiences with the turn key companies I am working with.

-Chad

Hey Jon,

After reading and carefully considering your reply, I just wanted to say a sincere thank you for your frank comments and your perspective. It has me thinking that is for sure.

Thanks for the concern Jon. There is a lot more involved here than just an opportunity to seed my investment in rental real estate. I could do that with my own Heloc which I already have.

The mortgage amount is modest, $425 a month, and a portion of the loan will go to pay off all of her credit card debt with very high interest which almost equals the monthly mortgage payment. Of course with me paying the mortgage she is spared not only the credit card interest but also the home insurance and property tax payments. In all this saves her about $4500 a year.

The goal is to have investment properties bring in more than this $425 a month. If we can do that, then we are golden. If things fall flat on their face I will max out my Heloc and buy the house back out.

Yeah Jon, I was going to edit the post for clarity. We own it (I grew up there) she lives there and I live an a different home. I was told that if the loan was in both of our names or mine that I may not get the primary residence rate.

I will go ahead and slog forward. I guess I better get used to this paperwork anyway. The three way phone call is a great idea but I will probably just drive down there and take care of it or at the very extreme end drive her to the VA office and get her online account upgraded to "Pro" so I can just get those documents online. The "Pro" account requires in person verification.

My grandmother and I are joint tenants on our home. I originally sought a local mortgage broker to take out a new first mortgage on this home in my name.

Knowing that the I was intending to invest most of the proceeds in rental properties, my lender suggested that we get the loan in my grandmother's name for a host of reasons that both me and my grandmother are comfortable with.

The problem we are facing now, after paying the appraisal fee is satisfying the underwriter. They are demanding access to her tax returns but the problem is she does not file taxes because her income is less than required to do so. The income is Social Security, VA benefit (military spouse of a veteran who passed away) and a civil service check. Now the lender is asking for my tax guy (my grandmother doesn't file taxes) to write them a letter explaining why she doesn't file taxes and so on. Naturally he is balking at returning my calls because this request is frankly, dumb. Also we are having trouble getting current award notices from the VA as my grandmother has trouble with automated phone systems and I live several miles away and work during VA business hours.

Has anyone had to deal with something like this? Should I just can it and have our lender get the loan in my name instead? I was told that if I did I would pay higher interest as the home is not my primary residence, but still, this all seems like a huge hassle.

Thanks for the reply David,

Yes my friend is a big part of my learning process. I am lucky to know someone that is making this work and lucky to have you guys here to learn from as well.