All Forum Posts by: Michelle Foy

I would agree with @Daniel Kim. Shop around. I am doing a cash out refi, currently, on the commercial side and one lender said he could lock it at 4.25 while the other said prime plus one that would adjust annually. I consolidated three loans into one. I always advise my clients to shop rates and ask what each lender has to offer over another. It is a good way to get the best deal and oftentimes ultimately be able to work with the one(s) you prefer while saving money. Also, my understanding is that rates will likely increase a few times this year so the sooner the better.

@Noelle B. I am in a similar place right now. Doing a cash-out refi, leaving 80+% in 3 on a consolidated commercial loan, pulling out $215. Have an additional $165 plus a home I own outright that I can take a $130 LOC on and I am not entirely clear where I want to put it. What always comes to mind is finding what you are passionate about. What gets you out of bed in the morning? I love design so BRRs are my favorite and the most rewarding to me even though I have to put in work. It is my ikigai....seeing my vision through. I have thought about self-storage (my grandfather did very well with this) and I definitely plan to do at least on STR this year and a sober living home. Those cash flow and they manage their own turnover internally. It seems like a good middle ground between an STR and a SFR rental. Very little vacancy, heavier cash flow than a SFR but less than a STR. Best of luck.

Thanks @James Carlson for sharing. I have a 4 bedroom home in the urban core of OKC that I plan to AirBnb soon but a friend swears by two bedroom homes for STRs in our area. He says his guests are typically a couple with one or two kids and that is his preference. He is worried I am inviting partiers. I don't agree and see a demand for larger homes. This is is my first venture as a host but I have been a guest renting large homes with my family for years. Have you had an issue with larger homes and rowdier crowds?

I, personally, would steer clear of that. It is a giant liability. About 9 years ago, my neighbor across the street rented out his home and his tenant's son drown in the pool. It was absolutely horrible. I wouldn't want that liability or constant worry. If you were to do so I would definitely make sure you have adequate protection in the form of insurance and language in the contract regarding maintenance requirements and responsibility. Good luck!

I personally don't 1031 because I can continue to cash out refi every few years and consolidate the loans....especially at these low rates. Leverage is my motto. I sit down and look at ALL the options. Fannie/Freddie requirements (time spent jumping through hoops) vs additional interest rate on consolidated commercial cash-out refi. You won't ever see me pay capital gains or stressing myself out on a 1031 exchange. Unless I have a problem property or it becomes outside of a comfort zone I am holding. I just pulled out 215K on 3 properties bought less than 7 years ago to reinvest and it increased my payment by $100/mo total on a 20-year amortization. Now I can buy another 750k in investments for $1200 a year. 

I put my rentals in an (or multiple) LLC(s) for protection purposes. It isn't foolproof and I think there are various ways to structure regarding protection but I mainly do it to keep my businesses separate on taxes. I like things clean and streamlined. Additionally, I like that people have to dig a little deeper to find the owner. I know Robert Kiyosaki and his tax advisor have some advice on this that delves deeper into the protection/privacy. I keep it fairly simple. I also do commercial loans (consolidated). I buy cash and consolidate a few at a time so nothing Fannie/Freddie backed. F/F don't like you to deed it to an LLC. They will want it in your personal name.

$13,426...put about 16k in and rented it for $450/mo. it was largely problematic though. I have also bought three for $33,500, $37,500, and $35,000, put a total of around 70k in circa 2015. I am doing an 80% cash-out re-fil right now and using the 215k in equity to buy more. Pretty good return in 6.5 years. Deals aren't as prevalent now but they are always there if you use your imagination!

I have only ever dealt with Luke for Mold inspections and he is great. I have heard of Village for sewer/duct scope but never had any first-hand experience. My biggest suggestion in OKC is to have someone who is familiar with the age of home that you are inspecting.

I deal predominately in the urban core so most houses I am inspecting are 70 years old+. There should be different expectations in these homes and I have run across numerous inspectors that scare buyers off because they are used to inspecting newer products. In Oklahoma termites and structural damage is not a matter of if but when and sometimes my clients from out of state aren't aware of that.....also deteriorating ductwork if in the slab (70's-80's) is very common because of the moisture and it is expensive to coat the plenum/replace boots....even more so to run it over head.

Best of luck in your endeavor! This is a great place to buy.

@Bruce Woodruff I guess we should wait and let @Faith Roberts reply and let us know what she is thinking but  I, personally, think there is plenty of room for her services whether long or short-term rental! ;) Staging services can be moving things around to complete (re)design. 

@Bruce Woodruff As a Realtor, I sometimes go into my client's homes and help them "stage" with what they already have in order to present the home's best foot forward. My thought was that she was helping them place/rearrange their existing items....although, it seems like her service could be malleable. She could actually help them by directing their purchases or they could pay her an additional fee for design services. I stay at a lot of AirBnBs and I am about to pull the trigger on my first short-term rental in OKC and I cannot stress the importance of how the home is presented in the pics. I will eliminate a home in 30 seconds if it doesn't feel like an experience. Presentation/staging is why people pick what they do...or at least for me!