All Forum Posts by: Mak K.
Mak K. has started 93 posts and replied 213 times.
Quote from @Connor McGinnis:
Hello,
I am looking to buy my first Duplex in the New Orleans market. My strategy is going to be house hacking the property. I have analyzed 300+ listings and crunched numbers on many of them. I have toured 6 properties so far as I have just connected with a realtor.
I have found two listings that I like so far. One in particular I like the most. However, this property is a foreclosed duplex and the bank owns it. It was built in 2018. 6 beds and 2800 SQF. Priced at $499k. Great location.
The property likely needs $10k worth of work.
I have heard that when writing an offer to a van owned property that the closing process can take a long time. My current apartment lease ends on April 20th and so I only have 3 months to close and move in.
My realtor also told me that banks can pull out from under contract late in the closing process if they receive a better offer which is scary to me.
Any advice on being able to write and offer and close this deal in a timely manner? Anything else that I should consider?
Thank you!
Curious how did you find the property? MLS?
Post: Water heater- Tankless Electric vs traditional Gas Heater
- Posts 214
- Votes 33
Quote from @Bjorn Ahlblad:
I had 3 tankless w/h in my same primary in Ca over 5 years. Between breakdowns, leaking, auto shutoff and program malfunctions it was a thankless experience! (PUN) I had to become the in-house software engineer. Never again. Last house we bought as primary now has conventional water heaters with tanks. I would definitely not recommend them in a rental. Just too many points of failure, temporary or otherwise and tenants would be unable to deal with re-starting them. Hope others have had a better experience, I can only speak from my own.
I heard the same issues you mentioned. Thanks for responding. Will go with traditional gas tank heaters
Post: Water heater- Tankless Electric vs traditional Gas Heater
- Posts 214
- Votes 33
Replacing a water heater at a rental sfh 2bath property in Houston, TX. Any suggestion on if tankless is better or not? Any pros or cons?
Post: Line of Credit vs Mortgage- Interest rates & fees
- Posts 214
- Votes 33
Hi,
I have always been a cash buyer and this is the first time I am looking at a lender for a deal. I am trying to decided the differences and especially the interest & expenses associated with the different type of loans. This is my understanding but please help me to get a clear picture.
Lets take $100,000 for the amount to be loaned out.
1> Line of Credit (based on stock portfolios)
- Lender says it will 0.5% origination fee ($500) one time cost
- Lender says prime -MINUS 0.5 = 8.5-0.5%= 8% loan as of today.
- No other fees or cost. I can withdraw and payback as needed. Only thing I need to pay is interest every month.
- More like a credit card where you limit is fixed. You pay interest based on what you use.
- Floating rates so I guess rates would go down as FED cuts the rate
2> Mortgage on property
- Lender says if it is LLC, then it is prime plus 2.5% = 8.5% as of today
- Lawyers & lender fees to be added- COST ADDER
- Survey and appraisal to be added- COST ADDER
- insurance, property taxes on property required etc to be maintained etc
Per my discussion, it looks like LINE OF CREDIT based on stock is easy and cost effective. Am I missing something? Anything I need to know?
Not very common but you can buy the house and continue and manage insurance claim under previous owner name. It’s possible but how it’s done I do not know..
Update and sharing what I learnt so far:-
I went to a local credit union and they said they give line of credit based on 80% equity. Also rates are prime plus 2.5. So as of this date you are looking at 8.5ish. Loan involves a fresh appraisal and origination fees etc.
Another suggestion banker made was it’s easier to get a loan on a stock portfolio. It cost less, there is no Leon, and rates are prime minus 0.5 meaning as of today it is 8%. the benefit is it did not require Lein, home insurance, etc etc making it cheaper to acquire
Post: Neighbor dog issue- keeps breaking the fences- landlord
- Posts 214
- Votes 33
So I have a property rental where the neighbors dog keeps breaking the fences. It is an aggressive dog. The dog breaks the fence and we get a letter from HOA.
how should we handle this situation? As a landlord should I write a letter to the neighbor or HOA or call animal control!? Or should the tenant do it?
the tenant is a single mom working to meet the ends meet and nice lady. So trying to help the situation as landlord but I do not want to overstep and take this issue on my hands if there are any risk?
Post: Why would you want to use a Supra Lockbox?
- Posts 214
- Votes 33
I am an agent. I love supra. Question- Do I need to have subscription $14/mo on supra to open the lock box. All I need is to open the doors. I never plan to use Supra boxes myself. So do I still need supra subscription?
Hi,
So I have 3 properties under 3 different LLC. I would like to get a loan or line of credit on the portfolio. The way I want is to get a Line of credit such that it is authorized, and I only pay interest when I withdraw from it. What is this type of loan called and who does it? I called Chase and other banks and they said we can give you 80% of the equity but you pay interest from day 1 if you use it or not?
I want something like an overdraft where I can use the loan cash for buying other properties. I am ok with little high interest rates. What is the exact term and what type of lender does such loans?
For HCHA Harris County Section 8, what is a good acceptable rent increase amount?