All Forum Posts by: Rumen Mladenov

@Nina Haman if you have a $70 k property that has ARV of $175-250, you can wholesale it and use the proceeds for down payment on the next deal you find. Are you sure your ARV is accurate? There is a lot of competition in our market, you must have been really lucky to get this deal if the numbers are right.

Hey @Adam Costa, welcome to BP. I am a buy and hold investor from Newark, and would be happy to share what I know about rentals if that is what you are looking into. You should also check out @Jeffrey Giffin's meetups and/or the Delreia monthly meetings, both are good ways to connect with local investors and learn from them.  

Why would you want to sell it? Your tax bill would be enormous! Unless you either do a 1031 exchange, or move into the property for 2 years and then sell.

My exit strategy is to let my kids inherit the rentals at stepped up basis.

@Chanel W. Welcome to BP! I am a buy and hold investor from Newark, and I have a rental rehab project under way in the area. Let me know if you want to stop by and check it out.

@Nathan W. I vote for Option 3, I used it a few times myself. I do not understand why you are worried about the negative cash flow at all. Your principal is $21,250 (25% of $85k). Your first payment would bring it down to $21,037.5, and since this is a HELOC, the $212.40 you paid down just became available to take out again - so in theory, you can take it back out immediately and have in effect $180 positive cash flow. Not saying you should do it, this is just a hypothetical scenario - I concur that paying it off ASAP using W2 income is better.

I had a HELOC that gave me an option to lock a fixed lower rate for 3 years on whatever portion of the principal I want. It was a $65k HELOC, rent was $925 on that property. To me it was a no-brainer - I put the entire balance on the fixed rate, getting a monthly payment of $1,900 on it. However out of that $1,900 only $300 was interest and the rest could be taken out right after I made the payment, at the normal variable rate. And you are worried about $30 in the red on paper?

@Crystal DundasHave you considered a heat pump? I have it in a few of my rentals, and the heating bills are quite reasonable.  

Hi @David Stabley, welcome to BP! I am a buy and hold investor from Newark DE, and will be happy to answer any questions you may have about rental properties.

Hi @Jonathan Arena, welcome to BP!

You just missed a great BP meetup in Newark, you may look up @Jeffrey Giffin's post and give him your contact info so he can notify you when the next one is scheduled.

I am a buy and hold investor from Newark myself, and will be happy to talk online or off.

Too bad you gave up a few years back... 2010-2012 was probably the best time to find deals! Nowadays it is much harder to find a good deal, at least in the areas I focus on. Not impossible - just harder.

Another way to get additional discount at Home Depot - get a tax refund. H&R block has a 10% bonus on tax refunds that are received in the form of a HD gift card. For example, if your tax refund is $3,000, you can opt to get a $3,300 gift card instead. You can combine that with any sales, coupons etc.

Of course, to get a refund you need to overpay in taxes through the year, or if you have W2 income you can request that more tax be withheld from your final paychecks.

Great idea but I do not think it is as easy to do legally as you think:

The Federal Trade Commission has warned the operators of six websites that share information about consumers' rental histories with landlords that they may be subject to the requirements of the Fair Credit Reporting Act (FCRA).

The letters inform the recipients that if they meet certain criteria, namely collecting information on tenants and their rental history and providing that information to landlords so they can make judgments about renting to those tenants, they are considered credit reporting agencies and are subject to certain legal requirements.

Among the requirements cited in the letter are the companies’ obligation to protect the privacy of tenants whose information they collect, including ensuring that those requesting information about tenants have a legitimate reason to acquire it. The letter reminds the companies of their obligation to ensure that the information they provide is accurate, to give consumers a copy of the information about them on request, and to allow consumers to dispute information they believe is inaccurate. The letters also note that the companies must notify landlords of their requirements if they use the data to deny housing to a tenant, and to notify the sources of their information of the requirement that they provide accurate information.

https://www.ftc.gov/news-events/press-releases/201...