All Forum Posts by: Nick N.

 I understand the whole mitigating your damages thing and didn't necessarily mean that he should follow through. Again, it was meant as a means to try and get them to the negotiating table so they can work it out in a way that is favorable to everyone.

 If he starts renovations then yes, but solely using it as a tactic to persuade them to work with him by reminding them of their responsibility to uphold the lease they signed otherwise. 

If it's a Fannie Mae loan, depending on when you took out the loan, you are allowed to transfer to your LLC without the bank enforcing the due on sale clause.

https://www.fanniemae.com/content/guide/servicing/d1/4.1/02.html

Remind them that if they do not sign the new month-to-month lease and plan on buying a house in the next few months, they are still on the hook (per the original lease) until September 2020 for rent. If they realize it is in their best interest to sign the new lease in lieu of being stuck until September, it may persuade them to work with you and be more responsive to your communications.

I sent you a PM @Isidro Martinez

What do you want to do with your real estate business this year? 

-I've owned my first owner-occupied single family for @ 5 years now and was lucky to buy in at the right time to almost double my equity. Once I finish the renovations I want to HELOC and rent out that house as we have moved into a new primary residence. Ultimately I want to sell the house within 3 years to avoid the capital gains or 1031 into a large commercial property.

Why?

I've been interested in the bigger deals since I started learning and researching REI as I'd like to have a more passive portfolio that will replace and enhance my household income within the next 9 years. I am ultimately looking at long-term buy and hold investments that give me several exit opportunities later in retirement.

What are you going to do this year to move toward financial freedom? 

I am currently working on a deal to add 36 units in a B/B+ area that are currently red-tagged due to terrible mismanagement and neglect by the owner. The HELOC plus some private funding already lined up would cover the rehabs and get the units rented at their maximum potential. I also have several other leads in the area since I invest locally and know the market very well. Additionally, I'd like to expand into other areas of investment such as self-storage.

Why?

The red-tagged apartments are a rare opportunity in the area that offer great potential to speed up our portfolio building and allow us more time sourcing leads/deals. The self-storage and other niches of investments would be for increased passivity once stabilized as well as more stability due to the lessened effect the market swings tend to have on them.

Since you mentioned doing a live-in flip, you could look at any potential value-add opportunities on your current duplex as a way to quickly build some equity into the property.

Not to mention that you're not the one paying the mortgage so long as you have it rented out. So increasing your cash flow with a 30-year term would offer the better benefit IMO.

Maybe look at larger multifamily properties ie apartment buildings and using the full 200k as a single down payment.

I had a similar incident happen about a week ago but on my new primary home. I was purchasing with a VA loan and 3 days prior to closing they came back and said I needed a septic inspection and they missed that it hadn't been done (after giving me the clear to close). After some back and forth with my realtor and their contacts with the VA, they ended up covering the cost of the septic inspection and were still able to close prior to getting it done (winter in Iowa). I actually have the same plan as you and am turning my first SFH into a rental now. If you end up needing a new lender, check out Homes for Heroes as they were amazing to work with and actually credit you back a portion of closing costs.