All Forum Posts by: Michelle Crochet

Hi Nat!

There are several benefits to going with a local mortgage lender rather than a national lender for a cash-out refinance, including:

- Personalized service: A local lender can offer more personalized service and get to know you and your financial situation. They can also offer more flexibility and options that may not be available with a national lender.

- Better understanding of local markets: A local lender may have a better understanding of the local housing market, which can help you get a better deal on your cash-out refinance. They may also be more familiar with local regulations and laws.

- Faster processing: A local lender may be able to process your loan faster than a national lender. They can also be more responsive to any issues or questions that may arise during the process.

- Supporting local businesses: By choosing a local lender, you can support your local economy and small businesses in your area.

Overall, working with a local lender can offer several benefits, including better service, knowledge of the local market, faster processing, and supporting local businesses. It's always a good idea to compare rates and terms from different lenders to find the best deal for your situation. Hope this helps! Best of luck to you :)

Hi Heriberto,

There are several banks and lenders that offer HELOCs (Home Equity Lines of Credit) for investment properties such as a four-unit apartment building. Some options you can consider are Wells Fargo, Bank of America, TD Bank, U.S. Bank, etc.

It's important to shop around and compare rates and terms from different lenders to find the best option for your specific situation. You can also consider working with a mortgage broker who can help you find the right lender and negotiate better terms on your behalf.

Hope this helps. Best of luck to you!

Hi Bassma,

When deciding what repairs to make, you should prioritize any issues that could become safety hazards or cause further damage to the property if not addressed immediately. For example, if there are any electrical issues or water leaks, those should be addressed right away. In addition, any repairs that could lead to lower rents or tenant complaints should also be a priority.

In terms of budgeting, it's important to have a solid understanding of the costs associated with each repair or renovation project. You should get multiple quotes from contractors and factor in any unexpected costs or delays. It's also a good idea to have a contingency fund set aside in case of unexpected issues.

If you are planning on using the BRRRR strategy, it's important to budget for the "R" (rehab) portion of the strategy as well as the "B" (buy) portion. You should aim to have a clear understanding of the cost of repairs and renovations before you close on the property, so you can make sure that you have enough cash on hand to cover those costs.

Ultimately, it's important to have a solid plan in place and to be prepared for unexpected expenses. A good team of professionals, including a knowledgeable real estate agent and contractor, can help you navigate these issues and make informed decisions.

Hope this helps. Best of luck to you, Bassma! :)

If you're considering selling your current townhome to use the equity for a downpayment on a larger property with an ADU or multifamily unit, it's important to consider a few things.

First, you'll want to make sure you have a solid understanding of your local real estate market. What are the trends? Are property values rising or falling? What areas are in demand? This will help you make informed decisions about buying and selling.

Second, it's important to get pre-approved for a mortgage so you have a better idea of what you can afford and what your options are. You may also want to consider speaking with a financial advisor to help you create a plan that aligns with your long-term goals.

Third, if you're considering house hacking or short-term rentals, it's important to research local laws and regulations to ensure you're in compliance. You may also want to speak with a local property manager or real estate agent who has experience with these types of investments.

Ultimately, the decision to sell your current townhome and purchase a larger property with an ADU or multifamily unit will depend on a variety of factors, including your financial goals, local market conditions, and personal circumstances. It may be helpful to speak with a local real estate agent who can provide more insight into the market and help you navigate the buying and selling process. Good luck, and hope this helps! :)

Hi Sidd!

As a realtor, you may have access to certain off-market or pocket listings that are not yet available to the general public. However, this is not a guarantee and is largely dependent on the individual realtor and their network. Additionally, having a real estate license can give you a better understanding of the legal aspects of real estate transactions, which can be helpful when negotiating deals or navigating potential legal issues.

However, it's important to note that obtaining a real estate license requires significant time and financial investment, and it may not be necessary for your specific goals. You can still find great deals and be successful in real estate investing without a license. Networking, building relationships with other investors and realtors, and doing your own research can all be effective ways to find deals and get ahead in a competitive market like Los Angeles. Hope this helps! :)

Hi Oleg!

It sounds like you have a good amount of cash and 1031 exchange funds to work with, which can provide a solid foundation for investing in multifamily real estate! When it comes to investing in multifamily properties, there are a few different strategies you could consider with your available funds. One option would be to pay cash for a single property, which would provide the benefit of no mortgage payments and potentially higher cash flow. However, this approach would also limit your ability to invest in other properties in the near future, as a significant amount of your capital would be tied up in the initial purchase. Another option would be to use your funds as a down payment on multiple properties, with the goal of using leverage to increase your overall returns. This approach would require taking out mortgages on each property, but could potentially allow you to acquire multiple properties and increase your overall cash flow. It's important to note that this strategy carries more risk, as multiple mortgages would increase your debt load and leave you more exposed to market fluctuations.

When considering either option, it's important to carefully research potential markets and properties to ensure they align with your investment goals and risk tolerance. It may also be helpful to work with a local agent or investment advisor who is familiar with the local multifamily market and can provide guidance on potential properties.

Overall, it's great that you're looking to invest your funds in multifamily real estate, as it can be a solid long-term investment strategy. Just be sure to carefully weigh the pros and cons of each approach and do your due diligence before making any investment decisions! Hope this helps :)

Hi Brandon,

I agree with the replies here!

Just to add: as a first-time real estate investor, it's important to carefully consider your options and make a plan that aligns with your goals, risk tolerance, and financial situation.

Here are some things to consider:

-Buying a multi-family property and renting it out can be a good way to generate income and build equity over time, but it can be competitive in some areas and may require a higher initial investment. You may want to consider expanding your search to nearby areas or adjusting your criteria to find properties within your budget.

-Using a 203k loan to fix up a property and flip it can be a viable option, but it can also be risky, especially if you are new to real estate investing. Flipping requires careful planning, management, and financial discipline to ensure that you can cover your costs and make a profit. It's important to do your due diligence, run the numbers, and have a solid plan in place before pursuing this strategy.

-If you do decide to flip a property, it's important to have a backup plan in case the market shifts or you encounter unexpected challenges. One option may be to rent out the property if you are unable to sell it for a profit.

-As for the decision to rent or flip, it ultimately depends on your goals, risk tolerance, and financial situation. Renting can provide steady income and long-term equity, while flipping can generate quick profits but requires more upfront investment and carries more risk.

-When working with a real estate agent, be sure to communicate your goals and concerns clearly and ask questions to ensure that you fully understand the process and options available to you.

Overall, it's important to do your due diligence, run the numbers, and make a plan that aligns with your goals and financial situation. Consider speaking with a financial advisor or real estate attorney to help guide your decision-making process. Good luck with your first investment property!

I hope this helps. Best of luck to you, Brandon!!

Hi Michelle!

It can be a bit different from traditional real estate transactions, but I believe that the basics are the same.

The documentation process will depend on the specific transaction, but generally, you'll need to use the appropriate CAR forms. For a manufactured/mobile home on leased land, you'll use the Mobile/Manufactured Home Purchase Agreement and Joint Escrow Instructions (CAR form MMH-29). For a manufactured/mobile home on owned land, you'll use the Residential Purchase Agreement (CAR form RPA-CA) with an addendum for the manufactured/mobile home.

Commissions for mobile homes can vary, but they are typically lower than commissions for traditional real estate transactions. Costs will also vary, but you'll likely need to pay for advertising, signage, and any necessary repairs or upgrades to the property.

Depending on the specifics of the transaction, you may also need to involve a mobile home park or other local agencies.

I hope this helps! Good luck with your new venture. :)

Congratulations on putting in an offer on your first duplex, Scott!

The decision to invest in a "rougher" area is a personal one and ultimately depends on your risk tolerance and investment goals. However, it's important to do your due diligence and research the area thoroughly before making a decision.

Here are a few things to consider:

- Crime rate: Check the crime rate in the area and look for any trends. High crime rates can be a red flag for safety and property damage.

- Property values: Look at property values in the area and see how they compare to other neighborhoods. If the property values are significantly lower, it may be a sign that the area is less desirable.

- Rental demand: Check the rental demand in the area and see if there is a high demand for rental properties. If there is a low demand, it may be difficult to find tenants.

- Future development plans: Look at any future development plans for the area. Are there any plans for new businesses, parks, or other amenities? This could potentially increase the value of the property in the future.

Ultimately, the decision to invest in a "not so great" neighborhood is up to you. If you're comfortable with the risks and believe it's a good investment opportunity, then it may be worth considering. However, if you're not comfortable with the area, it may be best to look for other investment opportunities.

I hope this helps. Best of luck to you, Scott!!

Hi Jennifer!

From what I understand, you cannot deduct the expenses related to your Seattle home in your 2022 tax return if you did not use the property for business purposes during that year because deductions are only allowed for expenses that are incurred in the year the property is used for business purposes. Since you did not start renting out the property until March 2023, the expenses related to the property cannot be deducted on your 2022 tax return.

However, you may be able to deduct the expenses related to your Seattle home on your 2023 tax return, as long as the property was used for business purposes during that year. Keep track of all expenses related to your Airbnb business, and for more accurate advice, do consult with a tax professional in your state to ensure you are taking advantage of all eligible deductions!

Best of luck with your Airbnb venture and good luck! :)