All Forum Posts by: Luka Milicevic

@Annette Barnett

My lender just quoted an investor of mine at 6.75% 30 year amortization balloon in 5 years. 

Not a DSCR loan

He only lends in TN though

That's a really good rate on an investor loan from what i have seen. I don't think you will see a DSCR loan under 8%

@Lydia Wright

If you can go STR, then go STR instead of MTR.

I'm assuming you're not in the NOO STR zoning code, so this might not be possible for you.

You have to consider the tax implications of selling a primary residence and having the home sale exemption. 

In your situation, I'm assuming you have a very low rate that even the tax benefits of selling might not outweigh losing the low rate. 

It sounds to me like you should use the FHA loan for the new property, if you have that available for you.

These are just my comments from the limited info I have. 

@Jane Park

The only person that can really answer this accurately is someone that invests in ALL 3 markets lol!

I can say that anything CA should be avoided. Starting a business, investing, buying a house, etc.

I have helped many people from CA move to Nashville and can't understand how anyone can live under those crushing regulations and red tape

Nashville is a great market for both STR and MTRs. It has a mix of industries that draw in travelers from all parts of the country, not just tourism. There are several large employers in the area that have corporate staff coming in for extended stays as well.

The only downside is the cost to enter the market can be quite high. You mentioned Santa Rosa and Austin, those two markets are expensive too. 

Let me know if you have any other specific questions about Nashville. 

 I have an investor doing this in the US from the UK.

yes, it's possible

The KEY is to have 110% a reliable team of boots on the ground that you can trust your investments with them. 

This is NOT going to be easy, but this is the only way you can do it. 

Base it on your "all in" cost

Not ARV, but your actual cost

Remember, the 1% rule is just a rule. The property doesn't have to meet this rule for it to make sense for you, or it can exceed this rule and still not make sense. 

Run all the numbers, and don't just follow this rule blindly. 

 You can only pay for stuff that actually accepts CCs. Don't think you can take out a cash advance without paaying interest. So there's some limit to this availability of funds.

I have my LLCs registered in my home state of TN.

Delaware was too expensive. 

Make sure you have adequate insurance and I highly recommend an umbrella policy.

An LLC is one layer of protection and I own all properties in an LLC

In LA, $2m is not enough...

In OH you can do a house hack with 20k, but you'd actually have to move there in order to house hack...

I once made the mistake of allowing this exact tenant in and I will never do it again.

She had an eviction filed against her, and her story was that she was going through a divorce living with her in laws and they filed an eviction against her for no other reason than to make her life more difficult. 

I charged a 2 month deposit as a result to protect myself.

She never paid a single month of rent, fought the eviction and it was my only ever Sherriff eviction that I've had to do. 

There are other tenants out there. Protect your investment

This is very difficult to tell, but yes it does seem high...

Most recent remodel I did was a high end remodel. Here was the cost for 3 bathrooms:

Demo: 700

Custom cabinets - installed: 12k

Counter tops - installed: 4.8k

Tile: 6.2k

Tile labor: 9.2k

Tile install materials: 1.1k

Shower doors: 2.8k

Fixtures - installed: 1.1k

Light fixtures - installed: 1.2k

Plumbing and electrical trim out: 500

Paint: 2k

That comes out to $41.6k total for a full renovation on 3 bathrooms with high end finishes. 

Hope this helps give you a better idea...