All Forum Posts by: Paul Evans Jr

Thanks guys, that makes sense. Not being able to pull it out 100% is what worries me. The HELOC is~$62k. We currently have 3 properties (8 units) that have all been value add, and I did the majority of the work on them. I'm pretty confident in the repair estimate as of now (not under contract so no inspection), and would do most of the work myself. I think this would keep the overall cost down significantly. However, we have limited reserves so maybe this isn't the right time for this kind of deal.

My wife and I found a BRRRR deal, but we don't currently have cash on hand for the down payment. We were thinking of using a HELOC on another property to finance the down payment. The property is a great deal… you can't get anything at this price unless it's absolutely crap. And this one just needs cosmetic upgrades (as far as we can tell). Anyways, here's the deal:

Purchase price: $258,000

Down payment: 20% ($51,600)

Upgrades: ~$8,000 + lots of personal labor

Value after upgrades: $325,000-$335,000

I put this into the BiggerPockets calculator, and we’re looking at leaving $20,000-30,000 in the deal and cash flowing $120-200/month.

Would it be stupid to use a HELOC for the down payment if we're not able to pull it all out after the refi? Seems like a good deal, but the risk of over leveraging kind of scares me.

We had a tenant sign a year lease and move in on September 1st. They messaged us yesterday saying they’ve had a “drastic life change” and want to break the lease already.

What would you do? Say no to breaking the lease? Keep the deposit? Make them pay until the unit gets rented to someone else? Thanks!

We’re in NM and require a 30-day notice on non-renewal, which will go out this week. Good advice! Glad it’s not 60 days!

Thanks everyone for the advice. We are going forward with the eviction process and the tenant should be served tomorrow. I’ve actually been wondering if this is something she’s done in the past, but there’s just no record of it. So, yes, it will be helpful to future landlords.

I have a tenant that is refusing to pay the last two months of rent. She claims it was paid up front (it wasn’t). We’ve given a 3-day notice to pay or quit and she hasn’t paid, which means we can now start the eviction process. However, her lease expires on July 31 and obviously we won’t be renewing. Is it even worth it to do an eviction at this point? Or do we just cut our losses and keep her deposit?

P.S. For those wondering, the 3-day notice took longer than anticipated as we are out of town and the tenant refused to accept the certified mail we sent. We had to travel to the unit and post the notice instead.

Hi all,

Every time I list a property, I get at least 1-2 people who contact me and want to move in that afternoon/evening. I always tell them no for a number of reasons, one being that the background check usually takes at least 1 day. Also, it just seems like a red flag to me. Has anyone ever let a tenant move in the same day they contact you? Interested in others’ opinions and stories. 

 That’s great to hear, thanks for the reply!

Hi everyone,

My husband and I found a property that we want to make an offer on. The original owner passed away unexpectedly ~1 year ago and their children inherited the property. There’s no mortgage and it has been on the market for a while, so we think this might be a good opportunity to offer seller financing (our first foray into it). However,we’re wondering if that makes sense from the seller’s perspective. The property hasn’t significantly appreciated over the last year so they won’t owe much, if any, in capital gains tax. Would they have to pay taxes on the income from seller financing? Or just the interest? I’m hoping this can be a win-win for both us and the seller. Thanks in advance!

Wow, thank you for the suggestions! I’m not familiar with owner carry, but I will look into it as that sounds like a viable option. The owner is about ~70 years old so this might be something he is interested in.