All Forum Posts by: Ko Kashiwagi

Hi Ryan,

What does your lease agreement say in regards to late payments and late fees? As much as it's nice to give the tenant a benefit of the doubt, this can lead to slippery slopes and often ruin landlord experiences. It's good to stay professional and show sympathy, but it's important you enforce the rules set in the lease agreement. Tenant laws depend by regions, but in general it's a bad idea to accept partial payments as there is a chance you need to wait longer for evictions.

Hi Alex,

As for conventional cash out refinance, assuming you will use full documented programs, your rates and terms will be largely dependent on your credit, income, DTI and equity. Generally for an investment property under conventional cash out refinance, the max LTV will be 70-75% - so you can calculate by (700k x LTV).

As @Nicholas L. mentioned, it's a good idea to compare conventional and DSCR cash out refinance options. Happy to help.

Hi Jeffrey,

I'm assuming you are doing a cash out refinance? Why don't you do the highest LTV cash out refinance and get some equity out?

Hi Austin,

I recommend Jerry Norton and Pace Morby to learn the basics. Attorneys can also help draft contracts. Investor friendly title companies can also help you, and sometimes they provide contracts they have used. Happy to help further.

Hi Kieran,

All the points mentioned by the comments are great tips. A good way to forecast rental demand is to also look at economic data from FRED - population growth over the past few years, median housing income, job growth, crime rate, schools, ethnicity mix, etc.

Hi Jordan,

There may be issues with the 2 on the same parcel, especially due to appraisal issues. Sometimes, when appraisers can't find comparables like the same ones, it will be difficult for them assess the value. You should be able to get 2 separate loans, and assuming each properties have its own APN, 3 loans seem probable. Happy to discuss further.

Hi Rachel,

I'm sorry to hear about this situation. Have you contacted attorneys or eviction servicing companies? You could sell this property, but you'll definitely have to disclose this and the process will be more complicated.

Hi Alex,

Have you looked into AirDNA? I'd also say that the best way to confirm STR estimates is to actually look at comparables, look at pictures and analyze their prices/vacancies.

Hi Brian,

In general, most DSCR lenders will not allows lease options in the lease agreement. Also, most DSCR programs have pre-payment penalty to get the best rates, so you would take a hit on points if you sell within a few years.

Hi Mahesh,

Generally it's better to go with the LLC name if you are planning to scale a portfolio. It would keep your business and personal finances separate, offering more protection and streamlined management of your investments. Also, the transfer of title would insure costs, and you would need to make sure the due-on-sales clause would not be an issue.

If you decide to proceed with the business purpose financing, lenders will generally require credits from all three of you given the shares of the LLC is 1/3 of the company each. However, if your lender already have the credit checks on file, they will not need to do it again. So the impact on your credit would be the same.