All Forum Posts by: Jake Wiley

Go ahead and reach out to your banker/lender.   If there is a title change involved it is like you are purchasing the property and should be immediate.   If there is no title change involved and it's in your name, then as long as there have been 6 months since the last financing, you should be good to go.   

I wouldn't pay for an appraisal, but I'd spend the time getting really clear on what comps seemed most realistic to support the valuation you believe in.    I don't think having an independent appraisal would be cause to overturn the bank's appraisal if it came back low, and you'd probably want to ensure that the one you hired had the comps you were looking at anyhow.    

Long story short, do your homework, bring your own comps to the appraiser when they contact you and that's likely the best you can do.   If the bank still comes back low and you have time, you can ask for a second opinion, but I imagine time is a factor here.    

What's probably most important is getting clarity that you can close both loans with either or both of the lenders knowing that you have both going on at the same time.     While you may the down payment for both loans, will the other ratios fall in line when you factor in having both loans on the books?   

You just don't want to get to the end of your diligence period and lose your earnest money on one or both properties because the lenders get skittish.   

Other than that, I'd work with the lenders with the best terms/ability to get the loan done in your areas, which could be the same or not.    

Good luck.   

 I would definitely approach your current tenants first.    There is no need to tell them you will not renew.  I think the reality is that its likely too big of a jump going up 35% so you need to be ready for that.     I also like to give tenants as much runway as I can if there is likely going to be a transition because its not convenient to move and nobody wants to be rushed here.   Like @Greg M. mentioned if you give them 60-90 days, it's not so sudden.   It will give them a chance to digest without having a kneejerk reaction.   A chance to look at the market and come back and they may elect to stay because the options are limited.   

You just need to get the property up to market rents.  

What exactly are you trying to get out of the analysis?    When you live on one side or don't have revenues coming in, you'll either need to allocate revenues from your use or factor in what portion of the debt, taxes, and insurance are on you to get you to what you are after.    

For example, if you were able to rent the other side out, what would that revenue number be.   You would then have to live somewhere else, what would that cost you.   Plug the lesser of those two numbers into the calculator plus what you are receiving for the other side and you can determine how the property is performing.   The reason you use the lesser of the two numbers is that if you could live somewhere else for less, then you are effectively discounting your property to yourself.   If it would cost you more to live somewhere else, then you are renting from yourself at market rates.    This is probably a better indicator of the property's performance in reality than trying to allocate expenses to yourself and only calculating rent off of one side.   

Hopefully, that's helpful.   

You can check out Airdna.co to get a sense of your local STR market. You can get some insights for free, but if you want to dig in a bit more on the local market you can get a monthly subscription for between $20 and $40. I verify everything with a local property manager but can give you some good indicative trends of nightly rates and typical annual occupancy rates.

Sign up for an account - no need to pay at this point and then select "Rentalizer" under the "Invest" section. Enter your property's address, make sure it has the right beds and baths and it will give you some decent info on what to expect STR. If you want more, then you can buy a local market for a month.

@Christina Colon - I'd consider a lease option before a sub-to deal.   A lot cleaner, likely similar result and makes it a lot easier to take the property back in the event of default.   Is there a reason you are interested in pursuing this as a subject to deal?  

You can't arbitrarily evict a tenant that has a lease in place, unless they have breached the agreement, thus starting the eviction process.  

You could talk to the tenants and see if there is anyone that is looking to move out, or you would need to choose not to renew one of the leases at the end of the next turn.  

Super frustrating I know!  You are doing the right things.    The only additional advice to consider.   

1) Let everyone you talk know you are looking.

2) Join the local REIA and let everyone there know you are looking. Find wholesalers!

3) You could look at Redfin/realtor.com for sold listings in the areas you want and identify both the top listing and buyers agents, if they are not the agents you are working with, talk to them too.   

4) Either be able to write offers or have an agent that will get offers in ASAP - be willing to consider larger earnest money deposits that get noticed.    

Good luck - In today's market it's about volume and speed.   

Real Estate Investing has given me the power of choice.   I no longer feel obligated to trade all of my time for someone else's business or goals.   I have the choice of who and what I associate with.   To me, it's not about being able to do nothing, it's more about working hard every day to be more effective with the limited time we've all got and not having to compromise.