All Forum Posts by: Kerry Baird

The “no closets” comment makes me nervous, as I have been told numerous times by appraisers that a space is only a bedroom if it has a closet and a means of egress.  Add closets to add value.  Tenants will want to store their belongings, otherwise you get transient types.

Welcome to BP! 

I got my start on investing in Tucson, following a few live-in fixers.  I really liked finding the probate houses there, which often have great structure and outdated paint/carpet.  If you haven’t done so, join AZREIA or smaller local meetups, where you may meet investors (who ought to be repeat buyers).  

Talk to a mold remediation person.  I had a guy come to one of my houses recently and he said the situation improves once moisture is removed.  In our property, the house was open to the air in the damp environment of coastal Florida, no heat or A/C at the house.  The plaster shows mildew, and because it holds so much moisture, he has recommended taking down the damp plaster before the weight of it collapses.  In the beams and wood plank flooring, we sanded and sealed with tung oil. 

A mold remediation business will be able to tell you the extent.  My guy said the mold needs to be heated or sealed in, hence the shellac you mentioned. Additionally, they test to determine what sort of mold/s are present, so as to determine toxicity.  

@Doug Smith, that is such a great response.  It has been my experience, too, that smaller banks with a deposit relationship have a lot of flexibility and a variety of products on offer. I’m thinking letters of credit, lines of credit, renovation loans, and so forth. Whereas I moved some of my business money to a big national bank, and there is so little they can do for me.

@Neel BS, thank you.  It is a moving target, to be sure.  

@William Silva, I put down either 20% or 25% on my houses. 

@William Silva

Saving up for down payment and 6 months' reserves for each property I own became onerous. DTI also become an issue. DSCR avoids both of those. Interest rates are not the driver for me.

Had to respond to that great first sentence!  

1. Mine have all been in the Space Coast (Melbourne, Rockledge, Melbourne Beach and Indialantic)

2. I first bought while stationed with the Air Force in England.  I contacted a title agent, and used her expertise to find an investor friendly agent, a lender who could close, insurance etc. From there, we moved to FL and I found several houses by driving around or riding my bike in the neighborhood.

3. All over the place and over a span of time. My houses are in my bio. Last one was a big STR that I bought, refinancing houses I'd held for some time to get the down payment. I have bought several with owner financing at 6% interest only. $400k and $500k on the purchases…and rented them on AirBnb.

4. I used DSCR financing, and have used the last 3 purchases as STRs.

Ooooh! Good thing you got that inspection!  It is crazy to me to see termites up at ceiling height, as I have seen a few times.  But in the attic space, as well.  My current house had termites and we had to tent the house at the start, and we use Termidor periodically.  Moving on…find the next one.  

@John Mason, good to know.   I have their business cards, but haven’t used their BLOCs.  Thank you~