All Forum Posts by: Havital Miltz

I agree with the others here that say you need to have some skin in the game, if you are going to live there yourself, get an FHA loan rather than owner financing, you can get a 3.5% down loan, personally I do not love these as they require PMI which is an additional expense, and you also need bring additional funds for closing at least for taxes, title, attorney and transfer fees . borrowing from anyone else for the down payment, to include a personal loan from the bank is not a good idea, those again will be higher int. rate. Best is to wait until you have enough for a down payment

With current interest rates, and they are at least 1% higher with potentially additional points for non owner occupied property, it is hard to find properties that will allow for positive cash flow after paying the mortgage, if you are looking for money for the down payment from a private lender, those are normally at higher than market and I am not sure it would be possible to pay it off.... please remember you need to take into account that you may not have a tenant for a certain amount of time, a tenant may stop paying rent, or you will have a big ticket item to fix, so I would wait if I were you and save to have enough for the down payment and closing costs and perhaps some money set aside for repairs. you also want to make sure that you have your own emergency fund outside of the money needed for the investment property because life happens ....

I do not know that if someone is in the hospital you can force them to close, I am not an attorney, but I doubt any court will find in your favor, closings do not always happen exactly on the day that is planned, even if everyone is healthy and well, the wholesaler here is not the reason for the delay so I am not sure what exactly you can sue him/her for, they are also being held up due to the seller not being well

Just give the person some time to get out of the hospital, closing will probably not happen the very next day either, this is really extenuating circumstance. 

Wow a bit of a sticky situation, did you have a conversation with the seller, directly or thru your realtor prior to the closing to find out if the tenant knows they are supposed to move out?

If not, I most definitely would reach out to the tenant, introduce myself and ask if they are going to be out by the 31st or the 1st, I would communicate  to the tenant as if I know they were told they are expected to leave, otherwise you may find they "do not know" they need to leave even if they actually know they need to leave....

In the case they claim they are not aware they need to leave, you would need to follow the laws in the state you purchased the property, usually you can find that info on the states judicial branch or speak with a landlord tenant attorney. 

Best of luck and congrats on the new property 

I think it will be very difficult to show 750 hours, most tenants deposit the rent, so there is no rent collection. unless you have a very high turnover of tenants, where  you need to show the houses again and again,  I am not sure where you can "find" all those hours for her, especially that you say the properties are newer, so how much repairs would you have? and frankly most landlords send a technician to fix things, not go there themselves, same goes for lawn care, usually you have a company that comes every week/other week, you do not need to be there.... 

I also  am not sure her getting her real estate license and sell a property a year as someone suggested will qualify for the 750 hours.

I know we all want to make money, but we do not want to raise red flags.... 

If you are not looking to evict now, I'd wait with these types of tenants until closer to the 30 days, you are looking for more confrontations and problems if you tell them you won't renew. 

if anything,  you can say that if there will be another violation you will start eviction process 

best of luck 

Take into consideration that when the person you gifted the property to will have special tax considerations as well 

NEVER borrow from a 401K, you are taking pre-taxed dollars and paying it back with after tax dollars, you do not get to return the loan with pre taxed dollars, in addition, some 401K plans do charge interest and maybe even fees, and lastly if you get laid off for some reason, it is a distribution with all the "fun consequences: tax at the last dollar rate, and if you are under 59.5 there is also the additional 10% penalty.

Personally I like the HELOC, however you can also sell stocks and do tax harvesting there to offset gains if that is an option

if it is unsecured loan that is the consequence, you lose they entire thing. as far as tax write off, sorry but none.

OMG, please do  NOT take money out of your 401K to pay off a mortgage, especially not for a rental. 

Not sure how old you are, and $200K in a 401K may be a little or a lot based on age, there may be so many implications taking out money from your $401k, especially if you are still working for this company.

feel free to reach out for tax advice