All Forum Posts by: Whitney Hutten

Just finished reading the Tom Wheelright and Gary Sutton's books.  Great ideas!  Need help implementing them though.  @Alonna Johnson , I've been following the thread and wanted to followup and see how your experience with Provision is going?  Are they delivering on your needs?  Would you do anything differently?

@Roberto T. , @Helen Bollinger , @Karl Scarlett how has your search been going for a CPA?  

Anyone with a perspective on your scenario?  A little update: rates have dropped so the additional payment has dropped as well. Just curious if there were other opinions:)  Thanks!

@Rolanda Eldridge thanks! We would only use the $70K cash for rental purchases. I'm not a fan of using the HELOC as a down payment on a rental... and having no means of immediately repaying it (not a risk I'm willing to take at least:). Would you please clarify the risk part you are seeing (I can guess, but don't want to assume:)?

Hi! We are looking to leverage the equity we have in our primary residence to accelerate our rental business. We took out an HELOC as a backup for large expenses with our business. We've tapped it a few times to make quick down payments on properties but always paid it back off with other assets.

Now... I'm starting to realize that that equity in our primary earns 0% and we could do more with it (ie. invest it in other rentals) to accelerate our growth.  Our strategy is that our primary will become a rental anyways in 10-15 years (so we have no intention to sell... but at sometime, would probably need cash for another purchase).

Here is my conundrum:

• Currently, we our primary is in year three of a 30-year mortgage at 3.875%. have $155,000 equity we can tap in an HELOC at 3.99% for 4 years (variable after that to 10 years). If we tap the full equity we have an extra interest payment of ~$500 and a balloon at the end of 10 years/
• Refi Option: We can cash out refi our primary to 70% LTV at 4.25% and get $70K cash AND still have $85K in an HELOC. However, our primary payment goes up $350 per month for a 30-year mortgage. The game plan would be to pick up 2-3 additional rentals, and still have $85K to tap for large expenses or that golden deal. And, even with the bump in payment, we could still cash flow our primary too if we rented it out today.

Of course, I'm starry-eyed about the refi option.  So, please red ink this strategy, reality check it, or offer new views!  

Thanks!

Whitney

I realize this post is a little old.  I see the suggestions of REITs and publically traded offerings.  What is the opinion of real estate income funds such as Commercial Real Estate Income Fund or Real Wealth Network's fund?  

I used to own in Estes Park... and drove for work to Westminster and Fort Collins (perhaps the flip of what you are doing). Although this was years ago, from what you shared, it sounds like the current lender you are talking to you is not a good match. Feel free to PM me and I can share lenders I've worked within the area (both FHA and investment). Good luck!

@Lashaw Salta Welcome!  We currently invest in the areas you are speaking about.  It is NUTS around here.  Be certain the numbers works (it's not easy and I feel most everyone here has clued you in on that).  Also, most investments are what you could describe as an "appreciation play".  That type of investment works for me, but it it doesn't work for everyone especially just starting out when you might want to generate cash flow to pick up more properties.  

What tip I can share... depending on your potential tenant... if you can get into a property that is in Legacy high school district in Broomfield, that is a very good start (I've had no problem renting out my properties in that area and for a reasonable premium).  Westminster/Arvada has some decent pockets as well, but you really have to get to know the area.  

I think the best question to ask is... why are you investing in real estate?  What is your end game?  Why in Denver and not elsewhere where you could leverage your money more, and cash flow to get to the next one?  Just all thoughts:)  I'm happy to talk to you about our experience anytime.

Hi! We are closing next week on this home as a BRRR. We've put together a nice punchlist for the inside, but I'm stymied by what to do on the outside. The front has grass and rose bushes, so it's not as bad as it looks. The backyard is literally a clean slate after you account for cleanup. The side yard also needs a solution as there is a HUGE bay window that overlooks it and the neighbors not so wonderful fence.

My husband was thinking all mulch, but we tend to rent to people with young families with a dog.  I was thinking of rock, bushes to hide the fences that aren't ours, and a smaller grass patch.  Help!  Our budget is very slim on this one, so ideas on numbers and any contacts are welcomed too.  And for plant suggestions we are in Zone 4/5.

Thanks!

I would say most have war stories.... my worst one is a bus fell onto the roof of the mountain rental 2 days before closing (yep! you read that right).  Nightmare to say the least.

Our most recent "mistake" was over-estimating our numbers and not doing due diligence on the area well enough for a rental.  Fortunately, we figured it out by the inspection objection deadline... bummer it cost us a few hundred to get out of the deal...  

As far as advice, do 1 deal and learn from it from purchase, to marketing, legal, tenant placement.  Post numbers in the forum for an extra set of eyes if you want. Then put together a battle plan for the next one (what worked, what didn't, how to improve).  

Hope that helps!

I like your thinking, however, not a fan of the black.  I find tenants are drawn to a "blank pallet" so to speak.  Greys, light browns, whites.  I like @Jeffrey Hotz idea of whitewash (an alternative would be Behr antique white solid... it's an amazing interior color too!).  That would mix well with the roof currently there.  If you wanted to get crazy, I'd paint the doors red (not orange).  It's a color most people can get behind.  Think like your ideal renter... what would they like (think what your customer wants...).  

As far as plants for the yard in the high desert, I like Carl Forester grass...break up the front with tall feathery stuff and create winter interest. Dogwood bushes and potentilla are another trick I've used.  Think clean lines. You could also lay a dripline on a timer, mulch it, and drop in correopsis, coneflower, sage, bluegrass, dogwood, thyme, purple oregeno (will take over), cat mint (will get HUGE) and allysum (some mixture thereof) and call it a day.  Really hard to kill that stuff when it is established.   Look to see if your local water conservation resource society does a spring sale on xeriscape plants.