All Forum Posts by: Jon Puente

Hey Sarah,

That is just the market right now unfortunately. Not saying that you can't find ANY properties that will work, but there are a lot that will not meet CoC returns. The way to cashflow heavier right now is MTR or STR.

However, I think there is a great opportunity to buy distressed properties and build some equity via rehabbing that could help rather than just "Cashflow". 

Keep looking!! 

Hey AJ,

Insurance housing is a good option for this, however there are more.  I would call construction companies who house their workers for different projects.  You can get phone numbers on the side of their construction vehicles most of the time.

You can also call hospitals that house nurses, especially the travel nurse industry.  You want to get in touch with the Housing Department at hospitals and let them know what you can offer.

Worst case scenario, you could ask local real estate agents or management companies who might offer MTR or STR services for a fee just to get you through the winter until you can run it by your self again.

I would also list on Airbnb for longer term stay and Facebook.  The more avenues to book, the better for you.

Hey Mikey,

Speak with a lender first.  No sense in looking at properties and going through the process without knowing what you can buy. 

Second, speak with a real estate agent.  Someone who knows the area EXTRA well, because you do not have any experience there. 

Please do not do these out of order (hopefully you already have your financing lined up).

Hey Sean, 

Is the short term rental not cash flowing enough for you to make payments on the HELOC?

You definitely have the option to do a Cashout Refi and payoff both, however the new loan will be your current mortgage balance + 169K at a 7%(ish) interest rate.  Will it help? Sure, but we don't know by how much.

I think the overall problem might be that the STR is not performing as well as it should because otherwise, you should have enough money to cover the HELOC. Feel free to DM me because there is a little more to consider here to see if it makes sense! I am licensed in CA.

Hey Kevin,

I would pay off the mortgage for sure. 7.1% interest isn't good enough to keep around a while, unless you planned on selling within a few years anyways.  

Here is how I look at it - If you pay it off today and hate the fact that its paid off, go get another mortgage in a year or two.  Your rate will probably be somewhat similar (plus or minus .25%).  

If your interest rate was in the 3's or 4's, then I would sit on it and invest the rest of the cash you have elsewhere, but 7.1% just isn't good enough to let it hang around. 

The only variable I do not know is if you need the cash right immediately for other reasons, but strictly talking ROI, you should pay the home off.

Great Work!

Hey John, 

I would reach out to Maranda Tucker in Charlotte, NC for a property manager!! She is with White Property Management.  She is also on BiggerPockets and you should be able to look her up!  Hope this helps. 

Never the seller! Always a Title Company / Attorney, depending on what state you are buying in.

Hey Jalen,

Just ask the landlord for payment history.  If payments have been made on time every month, then you shouldn't need to have the tenant reapply.  

But if the current owner says they haven't paid in 2 months, then you would want to know that upfront and takes steps to removing the tenant upon purchase. 

Hey Colby, 

I am very curious why the amount of points all of a sudden made you disqualify for a Conventional loan?  I am assuming this is for an investment property?  

If you are wanting a Bank Statement loan to purchase a property (which is what S/E borrowers use), then you need to have 680+ credit score and at the very least 15% down payment.  It's an entirely different world than the traditional financing. 

Great Question!

Hey Steve, 

Many lenders will not do a HELOC on investment properties due to risk. However, I recently found a lender that WILL do a HELOC on an investment property (thank goodness). Happy to share details if interested!

One key item is that the property must be in your personal name(s) and there are still DTI restrictions, so as long as you dont have any other substantial debts and a solid score, this is doable.