All Forum Posts by: Account Closed

Short sale is not on the plate right now.  It isn't surprising that the mega banks won't sell a single note.  I am keeping the property via adverse possession and will wait it out.  I figure at this point the bank has probably written it off unless the area goes through a major transition which is doubtful.  Thanks for the replies.

Tim,

I would personally use a HELOC. Interest rate is probably a bit hire than a loan, but you can move money in and out of it as you need it. When you get a loan you get a lump sum and a payment. No way to get more out of it if you pay half of it off without going through the loan process again. HELOC is more flexible.

This is easy. You can have a grand total of around 430K in VA loans. If he is moving to another home and WILL LIVE THERE. And the total of the 2 loans is less than the VA Max (around 430K), he can get another VA loan for the new house.

Agree with Brett here. I have tapped my 401K, HELOCs, personal bank loans and 0% interest credit card offers to fund rehabs and new homes. I personally like the HELOC if your home is paid for.

I wouldn't count on the lost generation to do much.  Personally, I have written them off.  One day they may get their act together and get a real job.  Should that day happen, I will have a nice home ready for the them to rent.

Never rent for equality appreciation.  My ADD won't let me read the whole question, but if you can predict the market that well, then you need to be doing other things than renting out homes.  You need to ask yourself what your long term goal here is.  Is this the only one you want?  Is this something you may want to do a lot of in the future?  If you answered yes to the first and no to the second, I would probably sell it unless you are making over 50K a year and are having someone else manage it.  Depreciation isn't worth the potential headaches otherwise.  You can easily end up underwater in a year or two if the market tanks.

It won't really matter either way. Banks are not going to fix anything and won't knock the price down of any significance even if you find something. Make a visual with you and a friend who is handy and knows a little about it. It is impossible to not be "surprised" with a vacant REO. Something will come up.

HELOC is revolving (like a checking account). Refi is just a single payment after closing. HELOC has closing costs, etc built into the interest rate. Refi is like your last mortgage and you have to pay closing costs at closing.

What is currently on there?  I have a home with the old particle board stuff called Masonite.  I am working with my local LineX dealer to see if you can spray truck bed lining on it.  It would seal it and make it darn near indestructible.  Granted there are draw backs, but it is cheaper than replacing it.

Here is my advice.  I have 8 properties now.

1) For a single home, shop around.  When you hit 5 or more, go with the same company.  It is just much easier to go to a single app or website and see your coverage.  I chose USAA, my credit union.  You will want an umbrella policy and many companies will require that you have all your insurance with them before they will issue an umbrella policy.

2) You will eventually want to.  Believe me, trying to manage 10 different payments is a pain.  It just isn't worth the small amount of savings of shopping everything around when you get to a certain point.  Last thing you want is for a policy to lapse and your tenant burns it down.  When I check my personal account on my phone, I can see my insurance is active as well.

3) Separate for now.  Wait until you get bigger and make lots of $$ before trying to package everything into a single policy.

4) It is a policy that covers you for pretty much anything.  Once the lawyers go through the home policy, they will attach the umbrella and should leave you alone.  I have a million or so.  Probably need to update it.  If a slip and fall happens, or a treen falls and kills someone, your umbrella policy will cover you after the home policy limits are reached.  YOU WILL WANT ONE!  Unless you have nothing of value and then it just doesn't matter.  I have 9 homes total and I would at least like to keep my personal home should something happen.