All Forum Posts by: David Rutledge

Good morning,

I am a new investor and I just recently had an offer accepted on my first two homes. One in NC and the other in IN (I live in CA). 

I have had all the inspections done and I am now in the process of sorting out insurance/ finance etc...

Both of these properties are rental properties and neither require any work. I have seen on here that most people seem to place their properties in LLCs rather than in their own names.

I am clueless about this and I was wondering if someone on here may be able to provide me with some more information about how it all works, the advantages of an LLC etc...

Why should I put my properties in an LLC and how do I go about doing this? Also, at what point do I do this. Before/after I get homeowners insurance? before/after the lender funds my loan?

Any help or guidance with this would be greatly appreciated.

I am sorry for the basic questions, this is my first time and I feel like I am learning something new everything single day in the process.

Thanks so much for your time.

David

That does make sense, thanks so much for the insight. It is really good to get such a wide variety of opinions and strategies.

Thanks so much.

No the property is in another state.

It cash flows about 300 a month without PMI and 220 with it.

Can you only get a HELOC from the lender you used for your first mortgage or any lender that offers that as an option?

hmmm, the HELOC is definitely some interesting food for thought. At what point am I able to do that? Is there a certain amount that I have to have paid off before I can do that 20% 30% etc..?

Also I know that most conventional lenders will only lend up to 4 properties at a time. Would a HELOC be included in this 4 and is there a limit on HELOC one may take out?

Thanks so much for the insight and advice, I really appreciate it.

David

My only reason is so that I can keep that extra capital for another property in the near future...

Good afternoon,

I am a beginner investor and I have been researching and sourcing these forums every step of the way. I recently put an offer on my first property and it was accepted. I am now in the process of getting the house appraised etc with my lender.

I was hoping to get some advice from other experienced investors on what interest rate I should go with.

My lender is offering three options 15%, 20% or 25% down. I have the available capital to put down any of the above but I do plan to obtain additional properties over the next 12 months so having that extra cash available will obviously be very helpful.

With 15% I will need mortgage insurance but the rate stays the same as if I put down 20%. It will cost me about 3000 total before my mortgage hits the mark where I no longer need the PMI than if I put the 20%. If I wanted to put 20% I would need to put down an extra 8000 so I am really debating whether I want to save that 3000 and have that capital for a potential additional purchase or do I want to save the 3000 and just put the 20% down.

25% is not really an option as I will be tying up too much money.

As I mentioned I am new to all this and although I am leaning toward the 15% option I would love to hear some opinions from investors or people who may have been faced with this decision.

Any advice you could provide to someone who is just starting out and wants to build their real estate profile while still saving the most money would be greatly appreciated.

Thanks so much for your time.

David

Great, thanks so much Michael!

Thanks guys, definitely some great advice.

I am not looking at properties that require any rehab at all. 

I am looking at Steel Creek in Charlotte.