All Forum Posts by: Dennis O'Loughlin

We need some good advice please.  We have a sfr we paid cash for and is worth more than when we bought it.  We have a great house we'd love to get but we cannot quite get the down and closing costs right now.  If we were to finance the cash house and then use it as the down for the other house we would then have a mortgage on 2.  Doing so, with preliminary numbers, would reduce our monthly income by a $150 or so since we would have a mortgage on the cash house plus the new house.  Obviously this doesn't make a lot of sense from a cash flow basis but if we were to refinance it later on at a lower rate, after we do some upgrades, that could significantly help us but the reduction in cash flow is concerning.

If we take the equity out and truly Brrr it, then we are doing better because we avoid the lower value mortgage but can finance at a higher level after reno.  Since we have never faced this situation before we are not sure how to handle this.  Any suggestions or thoughts would be much appreciated.  

We totally get the premise behind the Brrr method but at the same time, if you can utilize the same cash principle to buy a bigger, better rental house that will appreciate well over time due to location, wouldn't it also make sense to consider using the cash house equity for this bigger location house to be refinanced later at a lower rate and take the equity out of the better location house then and use the equity later?  I understand that isn't the way the Brrr method works but it's a thought we've had.  The better location house is something that could be used as a short term rental too and or we have considered just keeping it for ourselves at a later date.  

Thanks.  

 Great!  Thank you so much for the info.  

 The Salem area.

 A little further West...Oregon.  

Have a family member that is trying to sell some land in a gated community in Hereford, Az.  The information that I found online shows that land in the immediate area is ranging in price from about $37,000 to $150,000.  With such a huge variation in price we are wanting to find out the most accurate way to determine the true price.  

Does anyone have any connections in that area?  

I've seen a vacant lot for years and have had what I feel the perfect plan is for it.  It's in a part of town that is being revamped from former industrial to nice stores, shops, restaurants, and businesses and I believe there is even some money offered to help revamp that part of town if you purchase something and help improve the area.  

The lot is finally for sale and in the listing it states almost exactly the idea I've had for it.  We have absolutely no clue where to begin but in speaking with our lender he stated that we would have to find an investor with ground up experience to even begin to be considered for a loan of this size.  

What is a good place to start?  Since our investments are currently elsewhere due to the price of things locally, we are not networked with investors or other local landlords.. Suggestions would be greatly appreciated.  

My wife and I are considering purchasing our first 6 unit apartment building. The numbers are looking good so far but our only question is that 3 of the 6 units are rented to Section 8 recipients. We have never had Section 8 tenants previously so we are wondering what the basics are and if there might be pitfalls or concerns when you have Section 8 tenants. Is there a way to find out for sure what you should be charging for your units? I know there is a FMV that Section 8 Housing Authority looks at but I don't know where to find it and it seems like the current rents are low.

My wife and I currently have 2 SFR both with great tenants and generating income. Our current lender, who is FABULOUS, can only loan on quad units maximum.

We are needing suggestions for lenders who can work with a small company getting started, with half down, for a 6 unit MFR in Illinois. We try to avoid the large banks because we have had horrible luck with their lack of personalized service and them expecting everyone to fit into this neat little box so we prefer credit unions or brokers who will work with you.

Thanks for the help.  

My sister-in-law is wanting to invest with us in a multiplex.  We are planning on going 50/50 and as she put it, she just wants to be a "silent partner" because she doesn't have a lot of time to devote to all the in's and out's involved with real estate. 

In terms of setting things up, what's the best and easiest way to do this? Should she form an LLC with us and have it be the owner of the new property or should we just buy it with our current LLC being the owner and then she just pays her portion and basically partners up with us on this deal?

I know a lot of y'all have done partnership type deals so we are curious as to the best way to set it up.  

We have noticed that there are a lot more properties on the market and the prices are much lower than they used to be.  This is happening in a lot of different markets across the country.  Has anyone seen any articles on this in terms of whether this is the beginning of a real estate market downturn or just a normal downturn due to it being a little more of the off season?