All Forum Posts by: Denis Ponder

Get your finances lined up first. So, a job with work history, emergency fund, talk to lender about what you qualify for, etc. Once you have that, figure out what you are looking for. Buy and hold vs flip vs BRRRR vs whatever else is out there. Then, pull the trigger and learn. My recommendation is buy a house hack as a starter to learn what you don't know. It's a great way to start out. Spend your time now analyzing deals to get a better idea of how much you need for a downpayment, what your buy box looks like, etc.

Read and consume these forums and the books in the store.  Wealth of information there.

Agree with this!  100%  Take the money while you won't pay taxes on it and simplify the plan while you are taking care of the kids.

My PM got legal help when our tenant wanted to bring in a roommate and a 150 lb pig as an ESA.  Mind you, this is a 2 story condo.

Legal handled everything and the request was denied since the person who presented the ESA couldn't answer the follow up questions satisfactorily.

The tenant moved out when the lease was up.

Get legal help on this one.

Are you managing the property?  Or is the realtor?  If the realtor is, they should be able to just ask you the basic questions they need answers to and keep this moving.  If you are self-managing, that's a different conversation.  You seem very green, I would highly suggest finding a property management company to do this for your while you learn the ropes and how things work.

However, you can also get a copy of "The Book on Managing Rental Properties" by Brandon Turner, and get some really good information.

The main one's to consider are:

Background check - totally clear, or will you allow certain things
Eviction history - totally clear, or will you allow if no evictions for last xx years
Income Requirement - usually 3x the cost of rent
Credit History - totally clear, or will you allow certain things
Pets - yes or no, size, type, number of pets allowed, extra pet deposit/fee

Again, I highly suggest a property manager to assist you with this.

Savage!

Does is currently cash flow? Will it cash flow on a refi at 75% ARV and DSCR above 1? Will that cover you financially?

If the PITI plus expenses are being covered by the renter and you can get most/all of your cash back, hold it. Unless you need the cash now.

I think your caution of using a LOC for funding a down payment is wise. I would be equally as cautious, if not more, of using any equity based LOC as a means to privately lend to flippers. Outside of jeopardizing a current property I own, the spread on this can't be worth the time or energy. But, who knows.

Interested to see if there are other methods, but I'm skeptical for sure.

Once you get a good foundation and you are financially ready to buy a property, pull the trigger on a solid deal.  You will learn a good amount just from doing that.  You can revise and refine as you move along this journey.

I don't know that I would spend this kind of money to buy down the rate.  I would take the gamble that rates will fall on their own over the next 3 years and live with the result.  Does the property cash flow at the rate before a buy down?  If so, I'm not spending my money to buy it down further.

Do you mean a partnership where you are in it together?  Or do you mean the investor is funding/financing the purchase?

If they are financing it, you would just set up repayment terms they are agreeable to which also helps you reach your goals.

Regarding a partnership, that's a different animal.