All Forum Posts by: Alex Olson

@Drew Davis Yes, most likely. And this is a very smart thing to do. Although an even better solution is to buy a 4 plex using an FHA loan, rent out the other three units and then rent out the empty rooms in your unit as well. This is a great house hack that should be taken advantage of if you can handle managing 3 tenants plus your roommate! Good luck and I hope this helps!

@Marvin O. A good bank should be able to give you a ball park of what your place will appraise for. If it is close to what you owe on it, it is obviously not worth it. I would call around - give them all the details on the place and then ask if they think it will appraise at a certain amount. If they are on the fence about it, you may have to find another bank. But, don't pay for an appraisal unless you are confident you know it will work out. 

@Chris Mandle Have you looked at getting aheloc on you house? Or how about a low interest personal loan from lightstream or sofi? I have used both of these tactics and they have worked out. Just make sure it is a GREAT deal. Hope this helps!

@Armand Ngassam Your feelings are perfectly normal. You will never be fully ready to invest because you think you will always need just a bit more learning. The good news is that Real Estate is usually easy to learn on the job. Just be prepared for the unexpected. And don't let a market shock (such as this one!) scare you away. Hope this helps!

@Mark S. Roesel I would recommend working your but off to save, use good credit cards, a good personal loan (lightsream or sofi) and friends and family to finance. Might be able to find a line of credit at a local bank if you have a relationship with them already. Hope this helps!

@William Robison I would say that most people in most markets will say that finding a good PM is hard to do, especially for out of state investors. I think if you build a good relationship with a good agent in the area you are looking at they can provide you with the boots on the ground to find the best package of services you will need, including PM. Find one that is highly rated and works with buyers. They KNOW the market. Hope this helps!

@Lilly Fang Cash out refi- there are no tax implications. It is not considered income because you will be paying on your equity that you take out in the form of a loan against your property. Just make sure you pay it back - but it is not taxed! 1031 Exchange - you can 1031 exchange into another like kind property (virtually any piece of real estate including land) in which your taxes on the property are deferred to when you finally sell without exchanging (or gift to your family - in which case you nor they every pay taxes on it). So, hopefully you can see that your rental is an awesome piece of wealth generation. Hope this helps. 

@Errol Sadler Find a very local bank that specializes in investment deals. Portfolio lenders will love to loan on this assuming your finances are as good as you say. Look in your location first then skip to regional. I would recommend that with each bank you ask for a referral. Good luck I am sure you will find a good bank.

@Brent T Galbreath I would recommend using at least 20-30% down but not fully leveraged in case you need more cash at another time or want to invest more. You can always pay it off early and put more towards the loan if you wanted to. It is best to do what you feel most comfortable with. On the flip side - you can also pull cash out with a refinance if you do decide to pay all cash. The good news is you have a lot of options. Hope this helps!

@Greg Moore I would recommend cozy. It is 100% free for small landlords. Tracks everything, takes care of late payments, and allows for customers to pay by credit card if needed. Customers can also apply. It is cozy.co. hope this helps!