All Forum Posts by: Danielle Jackson

In my opinion, and remember its just that, it depends on your goals. A newer property, can generally achieve higher rents (market/neighborhood dependent), so it can help make up for some of the cash flow given the premium price you will pay. If you are needing contractors to do work on a rehab property, timelines and cost of materials can be a challenge. In the event, you are planning to do all the work - a rehab project all day long. 

There is really no wrong answer...if the numbers work on both properties (which is the MUST in the equation) then you have to choose which path makes the most sense for you.

I agree with others here. Stove/range is expected by most, and candidly will likely reduce your tenant pool (significantly) if you don't provide one. A refrigerator tends to be pretty standard as well with rentals, but you can probably get away with not providing one. 

Just beware that there is a possibility of some damage when asking renters to move/bring their own. I've heard some rough stories about fridges with water dispensers not properly installed by tenants.

Good perspective and advice from @Reid Chauvin. Buyer intent is key. Things change despite our best efforts, but you may need to write a letter to your new lender when you are working to take out another loan. Just be sure you can clearly articulate the change in situation. 

Did you contact the appraiser or did your lender contact them? You can write a formal Appraisal Reconsideration letter. We've done this before, and the appraiser went back and adjusted the comps used based on missed upgrades in their initial appraisal. We sent the Appraisal Reconsideration letter to our lender, who reached out on our behalf (after no success on our own).  Sometimes our lenders can move needles we cant. Just a thought. 

Also, a refi with no points (assuming it isn't just baked into a higher rate) is ideal. 

Something to take into consideration is rising rates. I would run some scenarios with different rates to determine the difference in payment. You can always tap into your equity at a later date - but the bulk of the debt will be secured at a lower fixed rate. 

Hi Lydia. I recommend building a relationship with a local credit union or bank. They tend to offer the best rates for banking and lending needs (if wanting a HELOC or something down the road).

As for the credit card for expenses, no, it doesn't have to be the same bank. I would ensure you have a separate card for rental related expenses for easy tracking. 

The rent control piece would be a deal breaker for me. 

I would check your local state rules. 

Generally, the lease has some term for notice to vacate 30 or 60 days prior to end of the lease. If no notice, then lease converts to month-to-month. You can also specify that the month-to-month rate will be current market rate.