All Forum Posts by: Kyler J Sloan

@Javier Mercado Thanks; I guess I need to get a bit more familiar with real estate nomenclature and laws. 

Out of curiosity, and if you can spare a minute: would you mind giving an example of a scenario where ownership is moved to an LLC and I am no longer considered the guarantor of the mortgage?

I have previously been asking my agent to show my house to contractors for a $50 travel fee, with 2-3 contractors coming at a time, in order to gather estimates for some renovation work. However, I would prefer to remain independent of my real estate agent's schedule, and be able to work with whatever time each contractor felt comfortable with. 

With that, would it be a bad idea to install more Ring cameras, in addition to a smart-lock, and give each contractor remote access? 

For what reasons might this be a bad idea? 

Thanks in advance for any feedback. 

How does it work when one places a property which they obtained a mortgage for in their own name into an LLC?

Specifically, I was told that a property in the LLC does not affect your DTI ratio, but is seems unlikely that I am able to simply move each property I buy into an LLC immediate following the purchase.

Otherwise, there would be no cap on how many I am able to purchase in my name: [1] Buy property in my name; [2] Transfer it into an LLC so that it no longer factors into DTI; REPEAT ad infinitum.

Thanks for any and all feedback. 

By working the numbers, I would be in a position to earn far less next year by renting it long term, rather than taking on short term debt for the renovations. I am located near a great STR market.

@Kathy Henley Although I said that my debt to income is too high, the 44% raise will be on a 80 K salary, bringing me up to 115 K a year. Further, this is coming just next week. Moreover, I am single, and have literally no outside expenses (I am spending just 700 to 800 a month personally). 

The renovation work includes kitchen and bathroom renovations, updated appliances, interior paneling, and furnishing. The appliances and furnishing can be taken care of by about 15 K of no interest credit cards that I have. 

I plan to pour every dime I have, while keeping personal expenses down to 700 / month, toward paying this off once I start renting it. 

I am in the process of getting a short-term rental ready, but made the mistake of applying for renovation loans AFTER the mortgage went on record, making my DTI too high to qualify for personal loans such as Sofi. In addition, I have to wait six months until I can take out a HELOC on the property (this is my first property; so a HELOC is not possible on anything else either).

If I would like to start renovating ASAP, what would you recommend? 

I know many will say a "no-interest credit card", but I think the DTI issue would greatly limit my maximum balance, and the inquiry plus new credit would damage my credit report.

I am considering waiting a bit longer until I get an anticipated 44% raise and re-applying for Sofi and Light stream (among all others I can find), at which point my DTI should be low enough.

Thanks in advance for any feedback. 

I attempted to obtain a personal renovation loan shortly after closing on my first property, but was denied on each attempt because the house was just placed on record. I am going to get a significant raise soon, but am still surprised I was denied (760 credit score), since I reported my newly anticipated salary in the applications. 

Should I have applied before the house went on record?

What renovation financing options would you recommend?

@Matt Mertz My thoughts are beginning to align with yours and @Jai Reddy. 

Even with sheetrock, there are homes that in all other respects resemble a cabin, and it is fairly easy to add paneling over the sheetrock in the future. If the paneling is factored into the ROI and it still provides great returns, I do not see the problem.

I think investors who apply hard and fast rules like "no sheetrock" are looking for ways to simplify their worlds, and quickly narrow down their prospects when looking for properties. 

If the rest of the cabin is themed log-style (exterior wood paneling, rustic kitchen, etc.), why not install interior paneling over the dry-wall? If that is the only thing that the property needs, why discard it outright rather than paying for the paneling?  

I have heard from a few people to stay away from short term rentals in the Gatlinburg area which have drywall walls and ceilings. 

If the rest of the house is themed correctly, why not simply install wood siding/paneling over the drywall?

I have seen multiple people discard properties on account of the drywall alone, and do not understand why, when the installation of paneling does not seem to be prohibitively expensive. 

Thanks.