All Forum Posts by: Jonathan Feliciano

@Andrew Rosenberg

Thank you for the feedback Andrew. I’ve actually been hearing a lot of the same things from other people, and I’m considering investing instead in neighborhoods near a primary school. I’m curious, what’s your opinion on that?

Hi BP Community.

I’m interested in investing in a multi-family property near a local university. As such, I expect to get student tenants.

In most cases, students typically don’t pay the rent bill; their parents do.

I know some people screen the student and make the student responsible for paying the rent. However, they may have their parent sign a second document saying if the student doesn’t pay, then the parents will pay the rent.

1. For those of you that handle student tenants, what is your process for screening and accepting rent for student tenants?

2. Which person do I screen: the student or the parent?

3. Who do I make responsible paying the rent: the student or the parent?

@Nina Granberry

I wouldn't recommend moving your savings into an IRA. IRAs are designed to be retirement vehicles, not savings accounts. That said, you can incur penalties when the day comes that you need that invested money to satisfy some unexpected expense.

It’s ok to have some money set aside for emergencies; not every penny needs to be working. The key is finding the right balance. Usually, setting aside 3-6 months worth of expenses will be just right. Hope this helps.

In @Brandon Turner's The Book On Rental Property Investing, one criterion he uses for screening tenants is that "their gross monthly income must be approximately three times or more the monthly rent."

I would like to ask the BP community if they have a similar requirement for screening tenants? 

If so, do you use the same number as Turner (three times), or do you use a different number? 

Why did you choose that number? 

Has this screening requirement helped you find better tenants? 

On a side note, what do you do when you rent out your property in a community where the tenants may not meet that requirement? For example, I would like to buy and rent a property near a university, but most college students may not be able to meet the three times requirement. However, some of them may have their parents pay their monthly rent. What do you do in a situation like this?

@George C.

Thank you for your example. Seeing the numbers and the math makes refinance a little bit more clear to understand.

So pretty much, the new 154K loan that we receive is used to pay off our original hard money 140K loan, leaving us with a little extra cash (14K) for ourselves. How do we receive this extra cash from the bank?

And to make sure I understand, we're still paying a monthly mortgage payment, correct? The only difference is that we are (hopefully) paying a smaller monthly payment?

Hello,

I'm trying to wrap my head around the "refinance" part of the BRRRR strategy.

It's hard for me to imagine how the refinancing part works without seeing visuals. Can you guys share with me some resources you've used to wrap your head around refinancing?

Also, when you refinance, are you still paying a mortgage payment?

@Wayne Brooks

So if I'm understanding you correctly, so long as i payback in full my fha loan or refinance it into a conventional mortgage, i can get a second FHA loan?

Is there a limit as to how many times I can do this?

@Elise Marquette

Hi Elise,

Say in a hypothetical situation, I am able to payoff my first FHA loan via refinancing. Would I be able to buy a second property with a second FHA loan in the same location? Or does my second home still need to be 100 miles away?

FHA loans are amazing for getting a low-interest mortgage and low down-payment. However, these loans are designed for first time home buyers and were not necessarily meant to be used multiple times.

That said, what qualifications/requirements would you need to meet in order to take out a second FHA loan? Is there a limit to how many you can take out?

I've been hearing the phrase "property taxes" a lot ever since I started learning about real estate, and how it's important to account for property taxes when calculating monthly expenses for a property.

But what are property taxes? Why do they exist? How do you calculate property taxes? And how often do you have to pay property taxes?