All Forum Posts by: Dale K Poyser

I would not recommend a HELOC or HELOAN unless both are at fixed interest rates. I did get a HELOC on my primary and it was fixed, so they are out there.

If you do, keep the balance low and take advantage of the zero interest balance transfer option on credit cards. As long as your credit is good you, if your HELOC rates go up, you should be able to rinse/repeat that "0% balance transfer" option every couple years until the debt is paid off.

There are alternatives out there as well

Loan on your 401k or IRA

Loan on your stock account

Down payment assistance programs that provide all or some of the downpayment money. (you may or may not qualify since you already have a primary)

Private money loan.

Good luck, but def avoid variable rates right now.

Some things that make a rental appealing 

1 - pet policy (pets or no pets allowed)

2 - number of full bathrooms 

3 - number of floors (single level vs multi)

4 - backyard or lack thereof

5 - school ratings (higher the better)

6 - crime ratings (lower the better)

7 - location to highways

8 - amenities (parks, pools, trails, lakes, etc)

9 - location to place of employment.

10 - age of the property 

11 - appliances 

Just to name a few.

23% - 30% is normal for a mid term rental or short term rental. Although, some property managers are charging around 10% for midterm rentals.

Is your lease term 1yr or more? Is your unit being rented as a furnished unit?

If this is a long term unfurnished rental then find another property management company with rates you're ok with. If you find better rates you can ask current PM to match or beat it. If they don't, move on from them.

Also, while "most" PMs charge a fee on "collected rent" there are some that charge a fee whether rent is collected or not. Stick with the ones that charge a fee on collected rent.

Do you have a lot of turnover with your unit? How long has it been rented? If there is a lot of turnover then the guaranteed rent would justify the price.

@Milind Torney if it is new construction I would suggest seeing if the builder has incentives through their preferred lender. Most incentives are based on you occupying the property, but maybe you can get second home financing? Either way def worth looking into.

Another option is negotiating the sales price. I have learned in this game that everything is negotiable. You can also ask the builder to buy down the interest rate.

@Zachary Deal @Jamie Banks Thank you both!

@Jamie Banks I have, what are good numbers to indicate demand? What are good indicators of low supply high demands?

 @Joey Banasihan i am interested in knowing what apps you are using if you don't mind sharing.

 How do you se the "rented" rooms?

I have a couple LTR properties in Arkansas and they cashflow. You definitely need a good team and to do your research. I started of with 57 cities and narrowed it down to several cities in Arkansas.

I interviewed agents and property managers to get the low down on areas since they would be managing my properties.  Again, you absolutely need a good agent, a good lender, a rockstar property management company. I would stay away from little rock if I were you. 

The cities I was looking at were:

Cabot

Bryant

Jacksonville

Sherwood

Maumelle

Benton

Conway

I settled on Cabot which seemed and continues to be pretty desirable and has a good mix of good rents and appreciation. I really liked Maumelle and Conway but couldn't get the right deal. Also Conway is next to Universities so might not be as safe. Good neighborhood was important to me.

If I was going to get something else I would look at Maumelle or Conway. But right now I'm trying to break into a bigger market like Arizona or Nevada.

Also, most important point - this area is considered Tornado Alley so Hail and strong winds and TORNADOES can do a number on your property. But that is what insurance is for.

 @Becca F. how did the tenant find out the ADU was not to code?