All Forum Posts by: Paul Shannon

Your local community portfolio lenders, credit unions would be good.  Also national players Lima One Capital, Corevest, Visio all lend to LLCs.

Thanks for the replies all.  I should have mentioned that my PM sent a plumber over there and was told by the plumber that he ran an auger bit into the sewer line and was pulling out tree roots.  I have no reason not to trust my PM, but don't know the plumbing company, etc.  Trying to understand if this is valid and a black swan situation, or if tree roots in PVC is more common than I think.   

I had a call from the PM for one of my rentals saying the sewer line was backed-up.  This house is only 30 years old, so assume that the line is PVC.  I was under the impression that PVC withstood tree roots.  Is it possible for tree roots to get into PVC?

I've had to replace old clay pipes due to roots, but am surprised to get this call.  Maybe there's an offset joint or crack?  

This property is in southern Indiana. It does get cold, but would be surprised as well if the line could freeze.  

I have a HELOC with Wells Fargo, a direct lender, on my primary. I use it as a short-term fund pool to buy distressed properties and then refinance them into longer-term notes after stabilizing them.

HELOC's should be used as only short-term funds, b/c of their variable rate in my opinion. Here's an opinion article I found that addresses your question more directly:

https://www.doughroller.net/mo...

There are exchanges for notes. One I'm aware of is www.loanmls.com. I'm sure if you do a google search, you'll find more. With it being a short-term income stream, with a higher balance, its higher risk, so you'll likely have to sell at a discount to the UPB.

This is an awesome story, congrats.  If you're looking to track you net worth, categorized spending trends, cash flow, asset allocation, retirement planner etc. , check out Personal Capital.  It's free to use and is the best software I've seen for tracking and measuring.  Once you have your goal set, it can be a powerful tool to keep you on track.  

Agree with others that house hacking is the way to go.  Build equity while the renter in your other unit pays your mortgage.  No better way to build wealth and knowledge when you are starting out.  

Outside of that, you could buy a primary now and access the downpayment/equity in the house, via a HELOC, to purchase rental properties down the road. May be tough to open a new line of credit though during COVID crisis.

There really is no wrong answer. 

There are a lot of rust belt cities where you could have success.  For larger metros, you'd be looking at C class properties, but could start to break into B class with $80K for purchase/rehab.  The B class will be harder to find.  Think Indianapolis, Cleveland, Detroit, etc. 

Tertiary markets are another place to look in the same region with less competition and more B class properties, depending on what you're looking for.  Think Toledo, Dayton, Evansville, Fort Wayne, etc.  

Wood:

Advantage - easy to change color scheme, durable with property maintenance, looks higher quality, lower cost to paint than re-side. 

Disadvantage - maintenance having to paint every 7-10 years 

Vinyl:

Advantage - easy to clean, durable without much maintenance (can last 25-30 years)

Disadvantage - can make an otherwise unique property look cheap/generic, more expensive, hard to match if section gets destroyed 

I think it depends on your hold period, the house itself, and the neighboring houses.  I will say, if you take a house to vinyl siding from wood, and the windows need replaced, do the windows first.  

I use Buildium for the properties I manage.  Very complete tool for every step of the process with tenant-landlord interaction, as well as business operations and accounting.  

I've heard Appfolio is also very good.