All Forum Posts by: Jessie Dillon

i think having 'discovery calls' with multiple brokers/lenders is always a good idea. see what loan products they can offer you, what their rates are like (but note that many tell you one thing & ultimately have to close you at another), and most importantly make sure you have a good gut feeling about them. make sure they're responsive and want to educate you & don't try to win your business by sh*tting on other lenders. it weirds me out that the person you talked to had said what they said. to my knowledge, rate shopping & getting your credit pulled for it multiple x in one 30-day span is just fine. all those hard inquiries fall off anyway. it's worth it to get a great loan product and a great rate. and they're wrong - not all lenders have the same products to offer! as far as having a lender in the state you want to buy in, i don't personally think that matters, as long as you know right away whether or not they can lend in that state (many investor-popular lenders that i've talked to can't lend in MA, which is where i live). 

so many thoughts!

- why Rent To Retirement? especially if cashflow is your priority, you may be more likely to find it OUTSIDE of a turnkey company. no shade at all to RTR, but you've BEEN putting in the work on your own already (ex: doing the bootcamps), & if you're willing to keep going the extra mile, you can probably find a more profitable deal on your own. 

- what about closing in a trust whose beneficiary is a canadian LLC? would that help at all? or what if you partner with a US citizen? there's got to be a way.

- can you get around the interest rate issue by partnering with a US citizen OR buying in a market where you can afford to buy in cash?

- what about being a private lender instead? you'd still get to make money in REI, with a secured predictable return, you'd just have to figure out another way down the line to be building equity and getting the tax benefits of ownership.

hope this helps! 

i would ask about their plans as far as whether or not they were hoping to renew, if both parties would be on the new lease, etc., then let them know that you're asking in advance because there is a chance you will NOT be able to renew them as you may need to vacate and renovate/sell for personal reasons. it seems most tenants are more understanding of not having the option to renew, when you're just going to be emptying the place to sell it. obviously that's not always the case. i would also consult with a RE attorney in your state to make sure that you navigate this convo in the right way. i know in some states the wording would be incredibly important.

hi! i'm in MA and used to own a vacation rental in NH! there are soooo many factors to consider when making the decision you're making, but one thing that's for sure is: HOUSE HACK! there ARE for sure deals to be found in MA and NH, but in MA at least in nicer towns you're more likely to just *offset* your cost of living vs actually cashflowing from a househack. not a dealbreaker depending on your goals though! cities with higher 'cap rates' (in the simplest terms: the gap between the rent and the purchase price is smallest), are mostly gonna be in the midwest & disperse out from there. there are obviously little pockets / hidden gems outside this area though. but if you're gonna have to live in it for a bit, where would you wanna live? and where do you wanna own/manage long term? some people take into consideration things like landlord/tenant -friendly states, where they'd want their kids to inherit property, higher-appreciating states, crime rate, climate, MTR/STR potential... sooooo much to consider here!

i have an fha loan on my house hack and was recently looking into something similar. my lender who is super creative and entrepreneur/investor -friendly, had said that i either needed to a) refinance my fha loan into a conventional loan first, or b) prove to the lender that i HAVE to move.. some examples he gave were: one of our jobs relocated us, or we're planning to try conceiving and in turn need more space. do you have enough equity in your primary where you can refi into conventional? might suck if your rate goes up but in the long run this could still be worth it, plus you'd probably have enough equity after 7y i'd think to also buy your rate down.

you can probably look the property up on the town property records data base online, let me know if you need help :)

this would be a great question for a cpa who really specializes in real estate investing or small business! i feel like your cpa should have been able to provide you with better information than that on how to use this potential deduction properly. i use @beachwoodbuyshouses on IG and she's insanely knowledgeable on how things like this can work for each individual!

great question! i'd take the 3 'more expensive up front' options, for each one list the difference in closing costs between that option & the 'cheapest up front' option, then compare your cash-on-cash return for each for the initial additional investment vs. the saved interest in year one. that would give you a starting point for if the extra investment up front is worth it or not per whatever your normal desired COCR is for any investment. but another thing to consider is, how long is the rate fixed for? do you think rates will go down eventually and you'd be able to refi out within a few years to a 'cheaper' loan product? this is to say like.. how long do you plan on being in this loan product, because if it's not very long, maybe it's not worth it to buy down. but if you're planning on staying in it long term, the return on investment will absolutely be there by buying down your rate. hope this helps!

my first thought is to use the 75k heloc to BRRRR as fast (and as well) as you can in a low cost market! but there are missing pieces of information that would make this a great or not-so-great idea, like your skill set, the amount of time you can dedicate to RE weekly.. BRRRRing can be done remotely for sure, but is more project-management-heavy than a turnkey buy and hold property. if you could BRRRR STRs or MTRs that would be even better! i have a great contact for bridge financing too if you need a lender to help with projects like this. excited for you guys!

@Nakia Addison thank you! :)