All Forum Posts by: Rod Youte
Rod Youte has started 4 posts and replied 7 times.
Post: BRRR holding costs, how do they factor?
- Philadelphia, PA
- Posts 7
- Votes 1
Quote from @Tom Shallcross:
The closing costs, holding costs and refi costs are all highly overlooked expenses. As @Jim K. mentioned, you need to account for this upfront and have additional funds and/or reserves to cover.
If you want help calculating holding costs I put together a calculator I use for flips, DM me and I'll send you the link. I understand you're looking to hold, but calculating the holding costs is the same exercise.
Hi Tom would you mind sending me that calculator as well? Thanks in advance
Post: PHA Rent determination
- Philadelphia, PA
- Posts 7
- Votes 1
We marketed our property for $1450 and we have a potential section 8 tenant who may move into our rental. We had to go through the rental offer approval process through PHA and we received our rental offer and it is $1205. We communicated with the employee at PHA and he stated the following: " $1205 would be the total rental offer, and was determined based on the comparable units in the immediate area". So, there is a $245 difference. Can we have this potential tenant pay the $245 difference?
I read somewhere that if a tenant wishes to rent a more expensive place, they can choose to pay a little extra out of pocket to make up the difference. This is called "going up to 40% of your income".
So the tenant would have to go through PHA to make this arrangement.
Also on the HUD website, it states the following:
"The housing voucher family must pay 30% of its monthly adjusted gross income for rent and utilities, and if the unit rent is greater than the payment standard the family is required to pay the additional amount. By law, whenever a family moves to a new unit where the rent exceeds the payment standard, the family may not pay more than 40 percent of its adjusted monthly income for rent."
Can I get your thoughts on this? And is this possible? I read this information online but I would rather have a more accurate measure regarding this.
Post: Philadelphia PHA (Section 8) Fair Market Rent Determination
- Philadelphia, PA
- Posts 7
- Votes 1
We marketed our property for $1450 and we have a potential section 8 tenant who may move into our rental. We had to go through the rental offer approval process through PHA and we received our rental offer and it is $1205. We communicated with the employee at PHA and he stated the following: " $1205 would be the total rental offer, and was determined based on the comparable units in the immediate area". So, there is a $245 difference. Can we have this potential tenant pay the $245 difference?
I read somewhere that if a tenant wishes to rent a more expensive place, they can choose to pay a little extra out of pocket to make up the difference. This is called "going up to 40% of your income".
So the tenant would have to go through PHA to make this arrangement.
Can I get your thoughts on this? And is this possible? I read this information online but I would rather have a more accurate measure regarding this.
Post: 75-80% Refinance Philadelphia Banks
- Philadelphia, PA
- Posts 7
- Votes 1
Hi All,
I am currently on phase 2 on my BRRR which is rehab. Now I am looking into a long term lender that will allow me to cash out refinance it about 75-80%. Are there any banks currently conducting this? BTW the property is under an LLC.
Thank you in advance,
Post: Credit Card Churning Using Plastiq to Pay Your Mortgages
- Philadelphia, PA
- Posts 7
- Votes 1
Originally posted by @Frankie Woods:
@Jeremy Blevins Thanks. You simply have to apply for a business credit card from banks other than Capital One, Discover, and TD [this list changes so it's best to google or check doctorofcredit.com, but I checked recently as of this post]. You will still need to provide a personal guarantee by giving your SSN, but it won't report on your personal credit report unless you default. You don't have to own an LLC. Technically any side-hustle counts (e.g., having a yard sale, selling stuff on eBay, etc.), but having an entity probably improves your odds of being approved. The hard inquiry will still appear on your personal credit, but it should only affect your score by 5 - 10 points. The utilization will not, which is awesome for those of use who like to BRRRR. Happy hunting!
Its a bit misleading to say that the business credit cards are not reported in your personal credit card because the hard inquires are posted on your personal credit card. Can anyone tell me if you can write to both the credit bureau and the credit card company to remove the credit card inquiry if its a business credit card under an LLC?
Post: During a Sellers Market is it best to look into auctions and etc
- Philadelphia, PA
- Posts 7
- Votes 1
I am a real estate investor in the Philadelphia area and its a serious Sellers Market. Many of the sellers are asking for prices that are WAY above ARV and the comps do not support their asking price. However, the sellers have a lot of leverage with many buyers entertaining their price. My focus is BRRRR. So, given those conditions, is it best to look into auctions and foreclosure listings?
Thank you in advance!
Post: The BRRRR Method and Financing
- Philadelphia, PA
- Posts 7
- Votes 1
Can someone breakdown to me the financing aspect of BRRRR in regards to payment. So if a hard money loan is used to purchase the property will the investor have to pay the hard money lender on a monthly basis until he/she can completely refinance? OR is there no monthly payment to the hard money lender post BUY, Repair, and rent phase? Are there business credits and/or hard money that allows you to pay once you reach the refinance phase?
Thank you in advance