All Forum Posts by: Mike Mosee

I've found my average, including Capex, comes in at $150 per unit per month

Hi Yves

Have used them for both turnkey, but lately where I find properties that need renovation.  Their team does a good job there as well. 

We've invested in Memphis for several years, but ALWAYS take the boots on the ground advise as 1 or 2 blocks can take you from "the hood" to OK places.   Very high crime rate.  We recommend Mid South Home Rentals, Chris Peak.  Has never stirred me wrong in 10 years there.

Beware that $100k equity does not mean a $100k HELOC as the banks only go 65-90% on equity. Having said that, I'm a big fan of HELOCs, IF the purchase is for a cash flowing property that you are BRRRing & can repay most if not all of the HELOC funds borrowed. If you use the HELOC, only for property investment, the interest is all tax deductible including the annual HELOC fee (usually less than $100). Have also been told the HELOC poison pills your home equity against any law suits whether used or not.

Try Karen Schimpf at Commercial Capital LTD

Try mortgage broker rather than the banks.   They are able to be more creative.

The big guys, Home Depot, Lowes, Best Buy,   never stock anything & totally depend on direct factory shipments.   Local dealers tend to have more available inventory for faster shipment.   Know your pricing before purchase & most local dealers will price match the big guys.

HI Anthu, You bring up several issues. I will address the HELOC advantage as I've used it several times. Done correctly, it gives you a tax deduction as mortgage interest. To do so you should only use it for rental purchases. Do so with the full intent to pay it off with the refinance. This means the purchased property must immediately be cash flow positive & have appraisal value, after any rehab , that allows you to pay back all or almost all of the Heloc funds borrowed.

You speak of 20% down.   The amount of down payment is dependent on the number of units you currently have & how many of those have mortgages in most cases because the percentage required down increases after 4 mortgages.   Always plan on closing costs & rehab costs in your calculations as well as holding costs if units are vacant.  We have always purchased one at a time to not over extend, but have purchased more than one per year with this strategy.

Good luck

We have used Mid South Home Rentals, Arlington,Tn successfully for almost 10 years.   Ask for Chris Peak, the manager.

Find out if your state recognizes series LLCs. You can buy personally, move into land trusts, move the land trusts into the LLC. This works without triggering due on sale clause