All Forum Posts by: David W.

@Chad New Thanks for the details and good luck on your project.  Here is rear view of the lot with the building I want to expand to convert. Would need to trench down the hill and connect at the street.  Not sure if the city and utility will allow the creation of a new connection. I will find out next week. 

Orange County CA. I have an existing structure approx 14X12 we are considering converting to a ADU in 2020. The structure is 20' from the rear lot line. The building has gas, electrical sub panel, water but no sewer connection. Connecting a sewer line to the primary residence is problematic due to elevation and trenching into the house slab for 35', across a bedroom, hall and bath. It would also require a waste sump and pressurized line to move uphill.

The rear of the lot terminates onto the neighboring street, in the same development.  A new connection to the rear street is 20' and downhill but would require cutting the sidewalk and opening the street.  I just replaced a 50' sewer line on a rental in Texas, $6,500 including permit. The TX project did not require cutting into the city sidewalk or street. 

Back to Orange County CA, if the city will permit, what is the ballpark cost?  I have no idea if this is a 12k or 50k project in California.

Our SFR properties are held personally, primary residence HELOC is in my personal name. I use Quickbooks Online to track all rental income and expenses. All draws from the HELOC are assigned to a corresponding property expense. At tax time our CPA will associate the HELOC interest to each corresponding investment property. In past years HELOC interest was as a mortgage interest deduction on my primary residence. I have a day job, self-employed and collect a W2 from my S-Corp, that may affect how our rental expense deductions are prepared, I'm not sure.

Greetings from down the steeet in Laguna Niguel. I’m a out of state investor, buy and hold, 5 1/2 years of steady growth. It can be done. 

Following up on the original post.  We opened accounts at a local credit union which happily accepts cash deposits.  I have three cash tenants which we inherited with property purchase.  They all pay on time and are good tenants, but unable or unwilling to pay with a check, money order or ACH.  

Thanks for all the input. 

We have three tenants that pay each month with cash.  Prior to 2/1/18 Bank of America accepted a cash deposit directly into our property account.  Now the bank will not accept cash unless the person depositing is listed on the account and presents ID.   How can we accept cash and have the tenant deposit?   I don't want to collect in person each month.  Each deposit is less than $1,000. 

Thanks in advance. 

I'm in year 5 using a HELOC on my primary residence to acquire and renovate buy and holds. I have a 180k line, the rate is 4.99% interest only, 10 year draw. I've run the balance up as high as 150k and back to below zero multiple times in 5 years. I use it as a checking account, all rental cash flow including reserves and property tax withholding to paydown principle. I draw from the HELOC to pay property taxes and major repairs. In addition, I pay down principle with "savings" income from my W2.

This week I'm chatting with lenders, a new HELOC with similar terms and 1% lower APR. Right now my balance is near zero and I'm ready to make a cash offer on the next opportunity.

I'm self-employed, no W2 job outside my own business. I pay for medical insurance, family PPO policy with Kaiser. Dental is cash.  Business insurance policy for general liability, equipment, and small workers compensation coverage. 

Week 2 of rehab on a SF 4/1.  The previous owner had improvised handgun stash boxes in most rooms, a void in a kitchen cabinet and over the doorway in the shed. 

@Tony Castronovo What LTV is your refi? I have a few properties here in Texas, which are free and clear, with stable tenants. In chatting with a few mortgage brokers, I appear to be limited to 65% LTV, as a "cash out refinance" for a non-owner occupied property.

Nice work and thanks for sharing.