All Forum Posts by: Damien C.

@Mehran K. Really cool news -- glad to hear it!

Have you asked a local realtor, or realtors, about what the rental demand is like in that area for 2-bdrm units versus 3-bdrm units? In some areas, 2 bdrm units turnover much more quickly, while 3-bdrm units attract longer term residents. Not sure if that is the case for the area in question, of course; but I think it would be worth looking into since regular, yearly turnover is probably not ideal.

I've never understood the argument that multi-families are better investments due to the vacancy issue. If a resident moves out of an SFR, it is true that that unit is 100% vacant. But your portfolio is not 100% vacant (unless you only have one rental house). If you own 20 SRFs or two 10-unit apartments, a resident moving out impacts your vacancy rate the same way, I would think.

I'm not against apartment investing at all. The vacancy issue seems irrelevant, though, unless I am misunderstanding the logic.

The ABCs of Real Estate Investing by Ken McElroy is about apartment investing. Awesome book...

dc

Hi folks. I've been in touch w/ a portfolio lender, and while the terms described are in line with what I understand other in-house lenders are offering, I'm still considering conventional financing due to more favorable terms. 

For those who are using conventional financing for a few rentals--or those who have in the past used conventional financing--I'm curious about your strategy for liability/asset protection. If I opted for a conventional loan, I would not want to tempt the on-sale clause fates by moving the rental, or rentals, into an entity.

I'm curious about what protective measures other have taken. Not sure if I would need to consider a more robust insurance plan, or what.

Thanks very much.

dc

@Brie Schmidt

 @John Newman

The above @mentions did not register the first time ;-)

@Brie Schmidt

@John Newman

Your input was helpful--thank you both.

My line is in place; I have not tapped it; and, as a habit, I make payments and pay bills on time. My score is okay now. 

Last year, however, I checked my credit and was hoping to see a 740+; I did not. Apparently, the fact that I had a 3k balance (still making min. payments though) floating on a 0% credit card, which had a 5k limit on it, was causing my score to dip slightly. So I just paid it off. All is well on that front now.

But since so many investors use HELOCs and also rely on good credit, it never occurred to me that tapping the line might cause a similar problem to the one I encounter with carrying a balance on the 0% credit card. There are, of course, differences between the above cc example and my HELOC: one is that I don't intend to use 60% of that line at any one time (though I'm not sure if that matters, it sounds like it might based on the comment regarding utilization ratio).

I'll check Credit Karma per the suggestion.

dc

Hi folks. I have a HELOC in place, and I'll likely tap that line sooner or later. Just wondering if anybody here has noticed a negative fluctuation in his or her credit score as a result of establishing a HELOC and/or as a result of tapping it. (I'm assuming all are paying the minimum payment on time.)

Thanks!

My understanding is that Chicago's laws hugely favor tenants over landlords. That dynamic is, of course, less of a concern in Milwaukee. I am a native son of neither city but a fan of both. With that said, I imagine the discrepant law's might dictate different approaches to each of these two metros.

Hi Travis--yes, that does help. Thanks!