All Forum Posts by: Dale K Poyser

 Refinancing to a 30yr should def help your cashflow. id say run the numbers and see. also if this property is in an appreciating area and you dont need the money it might be worth it to keep it. I think that places that dont allow short term rentals will do better over the long term as you have more people that care about the property as opposed to short term rentals like AirBnB

I would have the seller get rid of the tenant. That could be a lengthy and expensive process for you, even on a month to month lease. Especially since the tenant knows you, it could get awkward.

I think it is a great idea. Something else to consider is that most banks will finance you up to 4 rental properties or something like that. If you have the properties only in your name or your husband's name, then you can essentially raise that limit to 8 (4 for you and 4 for your husband) properties. If your financial profile can qualify you for that I'd say do it. Run the numbers to make sure you get the best rate. If your husband has a higher credit score and better income he might get a better rate. if that is a non-issue then I'd say go for it.

She is pretty set on wanting to do the full glass enclosure of the loft area despite the possibility of it not being appraised as a room. One consideration is that if we get it properly permitted and appraised, our property taxes will be higher. There is a 1bed 1bath that sold for slightly less than what we would expect for the 2bed 2 bath. So I think if we disclose the bathroom and sell it as is, we might absolve ourselves from that risk. And then she can go nuts and do whatever she wants. Like someone else said the buyer might not care if it is on record as a 1 bed 1 bath, but has a working second bathroom. So the buyer might also appreciate and pay more for the loft with glass enclosure with a curtain  even if it is not an official room.

This is all brainstorming and my preference is to get it permitted but I'll cross that bridge as I get closer to the point (selling or renting) of having to make a decision.

Dale

@Alexandre Marques dos Santos wow, that's good to know. I'll add that to my list of options as well, thanks for suggesting that.

Dale

@Alexandre Marques dos Santos what do you think the benefit would be of talking to a lawyer?

Thanks for the reply.

Thanks everyone for the thorough responses, it has been an eye opener and greatly appreciated.

After reading all the comments and suggestions I think what I will do is call the city and also call a few general contractors after the fact to get estimates on what it would cost to get things properly permitted.

The goal was to do an appraisal and get the PMI taken off and then look into HELOC for the posssibility of future investments. If not having permitting could cause issues with insurance and tenants then it definitely sounds like something I should make a priority.

It's good to know I may not have to gut everything, but also good to know what my risks and options are.

As for the glass around the loft I think the points on this are valid and therefore, I will pass on the glass walls.

@Jill F. The property is in Southern California

Thanks again everyone!

Dale