All Forum Posts by: Joe Jackson, Jr

Afternoon @Ali Kattan,

As a fairly newbie investor, this sounds a lot like the BRRR strategy, except you had more natural appreciation.

In my opinion from a high level this definitely makes sense. As long as those properties cashflow/ meet your requirements I see a great opportunity. 

On an Investment loan the bank will only give you 75-80% LTV so they will loan around $100K but if that ~$40K (minus closing costs) works for you to get the cash needed for the down payment go for it.
 

Hi @Jacky Johnson,

It seems like something I would do when renewing the lease. I've honestly never thought about this before but seems like the appropriate time to bring up the deposit. 

This way if they decide to refuse pay the difference, you have the option to not renew the lease. 

Depending on the tenant I would offer maybe a additional payment to the rent. For example, rent is $1,000 up from $800 at the origin of their tenancy. I would offer the option to pay $25 bucks additional for the next 4 months instead of $1,200 in the middle of the lease.

Just sort of thinking out loud.
 

@Nate Culkin 

I'd love to hear an update on that program if you try it. I'm right over in Indiana sounds like a great idea.  

From my understanding you are correct. 

I started sending my tenant (I only have one at the moment), Holiday Cards and her response has been pretty good. She was really surprised when I sent the first one and told me she is glad I'm not like the other landlords she's had in the past.

She was never a "bad" tenant but I noticed our communication has been less weird and more friendly.  

Hi @Tamera Muniz

The best way I can think of is to find the deal first. 

Most private Lenders buy into the deal, if you find a great deal. Put a bit of effort into showing why it's a great deal on paper and reach out to your local investors/ network to show them. 

I'm in a similar situation, I inherited a long term tenant paying way below market rent. I ended up keeping her coming up on 2 yrs now, I increased her rent $100 the first month then, $50/month over a six month period. She seemed fine with that since she was on a month to month lease. 

She is still a few hundred dollars under market but was paying her rent on time and never really had any problems out of the unit outside maybe 1-2 minor repairs. Things were going pretty good until Covid hit.

I think it going to be a bit tricky with the low income obstacle, not sure if you looking into a Home Equity Line of Credit. Which is basically a credit card with a higher line tied to your house. 

Maybe find hard money lender to give you the cash up front to fund your first deal by using your house as collateral.

Sounds like a famous "House Hack" type of situation. I am also a newbie investor but own 3 units. 

Taking advantage of that 5% down would definitely make sense if you can work it out with your bank.

I used a HELOC when I owned my Primary and was trying to buy my first rental unit. Ended up using the equity as the 25% down payment on the rental.