All Forum Posts by: Eric Mcginn

I have a little experience with this. Section 8 can be fine, but be prepared for a little additional oversight as far as someone coming to inspect the unit and require some changes to GFci outlets and smoke alarms etc. etc. 

beyond that, it’s nice to have guaranteed income. But don’t just rent to anyone! Make sure you think they’ll be a good tenant. I always look at their Facebook page :-) 

I just advertise my units for rent and if someone inquires if I’ll take a housing voucher I’ll take it case by case. 

Something else to remember is don’t over improve a LTR. 

that doesn’t mean be a slum lord, but stressing over improvements isn’t worth it. There are plenty of qualified potential tenants that would probably love to move in as-is. 

The second deal with $400 profit minus taxes and insurance? Sounds a bit tight but with 4% rent increases over time it could be worth keeping. 

you’re welcome, feel free to message any time, though I’m not on here daily. 

I mean it all depends, I’d need to see pictures. And honestly I’m a bit skeptical that you have Birds, raccoons AND BATS!? 

I’d find a local handyman or painter to give some second opinions. 

The $2800 might include repairin and repainting whole sections? Remember this is a rental and an off color section of soffit isn’t going to affect your income or the tenants ability to enjoy their home. It’s important to repair holes in your siding or rodent access. But someone should be able to do that for half the price I’d think 
 

Thank you for this! I’ll be looking into it for my CA vacation rental

Title companies don’t usually have much to do with creative financing in my experience. I might be wrong but title companies are just a bunch of lawyers that are checking / creating paperwork -!: title work. 

Sounds like you need a good finance person 

Anything over $600 you need to 1099 them technically

Keep calling local credit unions. At least someone should be able to offer you a second mortgage construction loan if you have equity

Keep it. Increase  the rent a little each year. If your goal is 10-15 units then you may as well keep this one. 

$10k is how much a multi room heat pump / AC costs installed! Just bite the bullet and do this. 

New well expense is a real bummer but it’s done. 

Hold on to that 3% mortgage. 

$2800 for bird removal and patching is too much. Get yourself a grumpy old handyman that lives near by. My guy would charge me like $400 for what you’re describing. Consider this an opportunity to find that guy. 

And just keep raising the rent 4%+ each year! 

Sounds like a good plan! Only thing is that I’d delay refinancing until you’re ready to make your next purchase. Then you can cash out refi and use it to close in new property. 
otherwise, you’re paying for loan fees twice. 
You'll also probably have to get it appraised for the refi, make sure you have enough rental history for them and make sure you use someone they approve and within 6 months of refinancing.  Basically ask you bank!

In this case it sounds like commercial lending will be needed for you to qualify for the loan. That means about 1% more interest and ~20year instead of 30 year. 

Unlike traditional residential financing, commercial loans allow projections and estimates to be used. 
call every local credit union and see what rates and terms they’re offering.  

Also, I'd personally try to rent two units as LTR and try one as a STR, depending on your location.