All Forum Posts by: Richelle T.
Richelle T. has started 8 posts and replied 318 times.
Post: Special Needs Housing?

- Rental Property Investor
- Columbus, OH
- Posts 340
- Votes 111
@Bill Gulley I have connected with the veterans and families first program offered by Volunteers of America. The set up seems really simple. No special inspection, lease review or anything. For a house that rents for $750/mo, I will get $475/bedroom by including utilities and lawn service. That is for their single men veterans portion of the program. I chatted with the housing coordinator and she generated an ad to send to the case managers then and there.
Post: Cash out options

- Rental Property Investor
- Columbus, OH
- Posts 340
- Votes 111
Thanks @Mike H. for the clarification. I was not considering an s Corp at all actually. That is definitely something to consider. You were head of me :-)
@Andrew Syrios
good point mentioning HELOCs for cash flow management. That's a better way to look at them. Thanks so much for your comments everyone!
Post: Newbie-form an LLC and use a land trust or just form an LLC for rental property?

- Rental Property Investor
- Columbus, OH
- Posts 340
- Votes 111
I don't know how this would work in tandem with bank financing. I'm talking about you solely being the lender. As in you buy a property with cash but instead of investing directly in the property holding entity, you invest in a lending entity. The lending entity then lends the money to the holding entity and a mortgage is recorded. The lending entity holds an interest only mortgage over your desired term so the lien isn't paid down over that term, ie maintaining the equity stripping. Now, yes you would own both entities but there is no reason for someone to think that you are your own financier. As far as the litigator is concerned, the property is overly leveraged.
I'm not a lawyer and I haven't tried this so I may not know the answer to any questions you may have about the nuances of how it works.
Post: Special Needs Housing?

- Rental Property Investor
- Columbus, OH
- Posts 340
- Votes 111
Thanks for the reply! I couldn't get you to tag in my last post for some reason.
Great idea with leasing to grad students. I actually just finished grad school so that niche would be a good fit. I love the creativity. Let's keep in touch with what progress we are able to make. I'm still trying to connect with the other VoA programs at the moment.
Richelle
Post: When do you request credit/background check?

- Rental Property Investor
- Columbus, OH
- Posts 340
- Votes 111
Your method of screening sounds like exactly what I'm looking for. I will PM you.
Post: Cash out options

- Rental Property Investor
- Columbus, OH
- Posts 340
- Votes 111
Post: Cash out options

- Rental Property Investor
- Columbus, OH
- Posts 340
- Votes 111
@Tyler Knott @Mike H. @Mark Whittlesey
I hadn't considered to match the debt service with the time of ownership. That does make sense from a buy and hold standpoint. Cash on hand is the best. It makes sense that my growth would be slower using a HELOC because I would have to pay down the debt before moving on instead of recycling the cash. The loan would be small ($30-40k) so I'm not sure I could get longer amortization.
One question I'm debating is that my lawyer was thinking of asset protection and suggested I set up a lender LLC to hold a mortgage on the property. This idea is great for asset protection but in the case where I want cash then it won't work. Cash out-refit could have the same result, a leveraged property, but with one I have cash now, with the other I'm just protecting the investment I've already made. I guess it depends on my goals: growth or sink the cash and protect the equity.
Post: Special Needs Housing?

- Rental Property Investor
- Columbus, OH
- Posts 340
- Votes 111
@Account Closed
Reviving an old thread...
Nick Sidoti's program pitch got me interested in this niche market. I just wanted to follow up to see how contacting the agencies has been going for you all. So far, I ran into the blog post Al Williamson did about veterans housing. I have made some progress in getting contact information from my local Volunteers of America and the Community Supportive Housing Organization.
My first Volunteers of America contact (family services) quotes very low rents and they only pay for security deposit and first 2 months rent. These patrons may or may not be employed. It seems super risky. Unless, of course, the plan is to keep recycling tenants after they are no longer able to pay/the organization's donation runs out.
That being said, is it better to target orgs that have vouchers to pay rent on-going on the tenant's behalf? Do you just take the risk? Are these rentals the lowest of low? The SFR I'm thinking to rent is low income but not as low as the price quoted ($450-550 for 2 bd, $550-650 for 3 bd home).
Post: Newbie-form an LLC and use a land trust or just form an LLC for rental property?

- Rental Property Investor
- Columbus, OH
- Posts 340
- Votes 111
Post: Illegal or on to something?

- Rental Property Investor
- Columbus, OH
- Posts 340
- Votes 111