All Forum Posts by: MIke Hewitt

I just recently discovered some water issues caused by lint. I kept noticing water on the floor in my laundry room. I thought maybe the leak is from the washing machine, so I switched out my washing machine and then later the water came back, so I thought maybe the dryer vent was leaking from the roof, but my roofing person told me that the vent didn't go up to the roof, it went up and over the garage to the outside. I also had some water damage about half way across the garage that I thought was roof related. It was all the dryer vent! The vents apparently had not been cleaned in many years and I had been in the house less than one year. We had a duct cleaning company come out and they cleaned out the duct and have had no problem with water since. But you ask where did the water come from? The heat somehow causes the pipe to sweat from moisture in the air. The other really bad thing that can happen is that houses can catch on fire from the lint igniting. So everyone reading this, go get all your dryer vents cleaned out at least once a year!

Thank you for the quick response! We do have to refinance out of the short term rehab loan, but cannot go into a conventional low interest rate product because of our jobs and we need to protect ourselves from due on sale, so are thinking about going with a legal wrap loan product from Investor Loan Source. The loan comes with 6 points and 8 percent interest and a 20 year term, so we would have to put the rate above that maybe 10 percent for 25 years. We are a little concerned the payment might end up being too high. 

We recently purchased our first investment property with Sherman Bridge. Paid 165K and did 35K of rehab (inc. new AC and roof). ARV is 265K. Rental income would be approx 1850 per month. We are under the impression if we sell outright we would owe IRS approx 20K in short term capital gains. We've owned the property only 3 months. Investor Loan source has a legal program where they allow the investor to owner finance (wrap) a property. The numbers appear to indicate that this would be an excellent cash flow exit strategy. Has anyone used this program or done anything like this? We appreciate all input.

We are close to being ready to do our first Subject 2, in the Houston area.  

We have not been able to find a title company to close us. 

 StarTex said they didn't do them anymore. 

Does anyone know a title company? 

We also have not been successful in finding a property insurance company.  How do most investors handle the property insurance?  

Thank you so much for your info.

We are feeling discouraged. 

Kathy Hewitt