All Forum Posts by: Evan Bell

I have a SFH and duplex free and clear in Southern California. I live in Arizona, but have the properties in a CA LLC. My question is: who will extend a business line of credit using the properties as collateral? I've talked with my bank, B of A, and they won't do it. Do I need to look at local banks/credit unions in Southern California, or can I get the line of credit in Arizona? Any recommendations on who to talk to or where to go to get this done would be greatly appreciated. We plan to use the LOC to help finance flips/BRRRR's and add doors to our portfolio.

Jason Bott all valid points. I realize it won't be a cut and dry number across the board. This is really our first time handling rentals completely on our own, so every step is a learning experience. Just trying to make sure we are doing stuff the best way we can.

Ron Rohrssen, awesome! Thanks for doing the quick math on those.

Joe Jung thanks for the response. I have talked to AAA, and they said that my primary residence has to be insured through them in order to carry a landlord policy. Problem with that is my primary is located in Arizona, and rentals are located in Southern California - they told me all the properties have to be located in the same state, which seems kinda silly. The rentals are located in a higher fire risk area, according to every insurance company we've talked to so far, because there isn't a fire hydrant within 1,000 feet of the dwellings.

Ron Rohrssen I don't think you're misunderstanding, I think we just have a different way of looking at it. I know that I've seen/heard others figure that property management should cost around 10% per month, vacancy at 3% per month (that number may be off, but it's just for the sake of the example), and so on. Just wondering how much people typically earmark for their insurance policy.

How much do you figure your insurance policy should cost you as a percentage of the rent collected on that property per month?

Thanks for the replies, @Sherman Ragland and

@Wade Sikkink.  We've got a pretty good relationship with our personal banker, so I suppose our next step is to talk with her about what we would like to do.

How do I go about getting a HELOC through my LLC? My wife and I own an SFR and a duplex in Southern California that sit on the same piece of land. They are completely paid off and we want to get a HELOC on them through our LLC in order to help fund some fix and flips. Never done a HELOC with an LLC before.... Is it possible? What type of bank should we talk to? How much of our personal W-2 income, if any, is taken into account for this? We were thinking this would be fairly easy to do since the property is paid for and with all three units filled, we should be netting about $2k/mo cash flow.

Found a good GC in the area that's doing some renovations on one of our other properties - his company does everything including new construction. I got at least an idea of price for new build as well as county officials to talk with and utilities companies to contact. 

I would be interested in what your price per sf would be for a new build. The property would be a duplex with each unit being 2b/1ba and each with a single car attached garage. If you wouldn't mind emailing me I'd appreciate it. 

Tax assessor website for the county the properties are located in.