All Forum Posts by: Eric Bowlin

I won't promote anyone's product on here, but if you jump on Google and look up things like "cash on cash return calculator" or something along those lines, you can find a lot of software out there.

There is always pros and cons. Experienced people may not want to spend money on something they can do easily with excel.

Newbies might like software because it helps them make sure they aren't forgetting something.

@Thomas S. will have to pay for a new place to live. a 30 year fixed loan on $700k (their equity) would cost them around $2000+/month in interest.

And we can't forget about potential appreciation on the 2nd property.

And honestly, this is all assuming they have unlimited funds to cover principal payments. It may put a huge financial strain on the owner to try to cover the principal payments on two properties in order to get appreciation at some unknown future date. Covering those principal payments will undoubtedly affect their ability to invest in their favorite S&P 500 etf or mutual fund, since investing in most other US funds is throwing money away over the long term.

So.... with the information provided, I can't say what the best answer is. Just that it's pretty complicated.

I started off doing the same thing. Everything has a learning curve, but I found that dealing with tenants is the thing that takes the longest to really learn, and can cost you the most money.

With tenant relationships, just like any relationship, you need to master the art and the science of dealing with them. Broadly speaking, the science is to know every nuance of your tenant laws and regulations. The art...well, remember that they are people too.

Hard money is usually a bit expensive for such a long term, at least in my opinion.

I've done it before with a shorter term - bought a multi, did some renovations, and then did a cash-out refi in 6 months. I have so little money left in the deal now it's earning me something like 400% a year.

@John Welz,

I'm a former MA guy from Worcester, moved to Texas in 2015 (I don't know why it took me 30 years to figure out I needed to move). I have a bunch of property in Central MA still. Hit me up if you have any questions.

From my understanding @Zena McCoy, HELOCs are easier to get than traditional mortgages generally because they don't have to follow Fannie guidelines.

To play the numbers, pull your credit report and you will know exactly what the bank is using as your debt payments. Put them all into an excel spreadsheet. Your spreadsheet should have the total debt, the monthly payment, then an additional cell where you calculate Total Debt/Monthly Payment.

This will give you a ratio of how much you need to pay compared to how much monthly debt it wipes out. You want to pay off the debts with the lowest ratio first. You can also offer to the bank to pay off some of these debts with the HELOC to manipulate your numbers.

For example: consider two loans one with a $10,000 balance and $500/month payment and another with a $20,000 balance and $700/month payment. The first loan has a ratio of $20 of payment per $1/month debt reduction and the second loan has a $28.6 per $1/month debt reduction. To make your limited money do the most to reduce your monthly debt burden, you should pay off the $10k loan first.

If you can target a few low ratio debts you may be able to manipulate the numbers to your favor. Good Luck!

I also have done a cash out HELOC before where you pay off the whole loan balance with the new HELOC.

I personally would not have asked him to leave unless the odor or smoke was bothering other tenants. I would refer to what @Randy E.said though. If you have an anti-smoking policy and if the apartment has clear smoke odors, I would follow the same rules as you apply toward any cigarette smoke.

"have you ever been evicted?"...No Absolutely not! they respond. Quick search shows 3 evictions in 5 years with one pending!

The following one didn't happen to me but did happen to someone I personally know:

Tenant applies for an apartment. Shows up after work. He is a chef at the local restaurant. It's a small town so the landlord asks some people around town if they know him. Turns out, he is not a chef an actually has no job. The kicker is, he showed up in a chefs uniform, had food stains on the clothes, and smelled like a kitchen.

Some people truly are con artists and will go to great lengths to sell their lie to you!

wondering if anyone had a referral for a good attorney north of Dallas that has a good understanding of business and real estate. 

I agree with @James Wise . Worcester is a little different though. Their CML is online and just pressing a button instantly gives a CML for closing. Banks will accept this as history of expenses for taxes, water, and sewer. It goes back 3 years I think.