All Forum Posts by: Jared Hottle

I think if you have taking a liking to BRRR and have solid financing terms on your current 4-plex I would look to use all my excess cash to do a BRRR. Talk to local banks and tell them what you want to do. There is a solid chance you just need a downpayment for a purchase and construction line if you do not want to pay all cash for property/construction.

I have not done it but seems like a good idea if your bills are high and you think should be lower. I dont mess with it because it does not seem the savings would be worth the time. Good chance your electric company has rebates for the purchase of them too if you do some research. At my house I have a nest and the app works great to adjust schedules or remotely change the temps.

Obviously, alot of factors at play like how easy it will be to rent, how much it will take to get rent-ready, etc. If it were me I would let him break the lease and be gone. Seems like a headache and the fact he is giving you a way out is great. 

Unsure how easy it is to split gas and water in your unit but sounds like its not as simple as just ordering washer/dryer and hooking them up when they come in. If it were me I would not advertise as in-unit until the split was done and all the necessary hookups were there including drain and venting. Then it becomes a nice surprise when it is done for them. If all hookups are there I would probably advertise it as in-unit. I learned my lesson on advertising before I knew how hard something was and had very upset tenants when the project was not done for a few months so I will not make that mistake again.

Our Real Estate Investors Meet-up will be at Maple Lanes next Tuesday the 13th from 5:30-7:30. Hope to see you all there!

I would say HELOC as well but another potential option is sell your house as the gains will be tax free since it is where you have lived for 2 years. This will give you cash and lower your DTI. Look to house hack multifamily or buy a house you can fix up as well as having the cash to put down on an investment property. Can do alot with a 200k plus downpayment. Maybe even get into NNN investing. Lots of options.

Commercial loans typically just mean in-house financing. Im sure some banks may require it bought in an llc but most will still allow it in a personal name. Just call local banks in your area and let them know what you are trying to do and see what they say. 

I would recommend private or hard money loans or if you have equity in a home or retirement seeing if you can get a line of credit with those as collateral. Going to local meetups and meeting people who may be a money partner or private money lender could be very advantageous.  

Look for agents on BP is big, have pre approval in place (from a local lender in the area if possible) and I think you want to have your focus narrowed as good as you can before making the call. Do you want multifamily, BRRR, single family, etc. You may like it all but really focus down on one to start and you will appear serious and ready when you talk to an agent.

Bankers in your area will definitely know the most. I have heard 10 in your personal name if they are being sold on the secondary market (Fannie, Freddie) I believe they take into account a certain portion of cash flow but each one in your personal name will keep adding to your debt to income ratio. Everyone is different with different situations and risk profiles but I think maxing out your secondary mortgage loans at 10 with a good umbrella policy and talking to a lawyer about quit claiming them into an LLC is advantageous as your debt will be fixed for the life of the loan and typically you can get better terms. After 10 you will need to look for commercial, in-house financing. As far as that goes I would start talking to as many local banks as you can and let them know what you are doing and see what they can do to help. Every bank will do something better and worse than others so find one that aligns with your needs and has good service and go with it.

I agree with everything said the deal finders seem to be the moneymakers. Another thing I will say is investing yourself can make you very valuable to new investors or investors new to the area. You will be more updated on rental law, city ordinances, have good connections to vendors and will know what areas rent for what. Some don't like this because they think if the agent invests then they will take all the good deals but I think the value received and the confidence with which you will speak will do much more for you.