All Forum Posts by: Scott Johnson

I like to stick to straight mortgages and refinancing when I can, but HELOCs are a way to go if you'd like. The interest is just calculated per diem (per day) so it tends to be a bookkeeping nightmare. 

I'd personally recommend that you build up your capital and let your loans get paid down, especially if you're not finding anything that'll cash flow. 

Also, you may want to look at your current rental income and see if its worth buying a property that will provide an income loss (via depreciation) to offset that cashflow. Talk to your CPA first, but the viability of buying higher priced properties increases when you're looking to use them to offset taxable income. 

Hope this helps!

 Type this in google in a new incognito window:

"sell my house fast" + [your city and state]

Example:

Wholesalers who are worth their salt have a strong web presence and reviews to back them up. If you want to find the people who are really serious, type this:

"powered by carrot" + [Your city and state]

Hope this helps!

Congrats, dudio! Best way to start off a long-term relationship! Setting yourselves up for success!

 Sent a message :D 

 Keep in mind that HELOCs tend to be a bookkeeping nightmare, since the interest is calculated Per Diem. 

What's keeping you from refinancing a couple of properties and asking the bank what the cost is to "lock in" a rate, so that it's not Variable. Ken McElroy recently did what he calls a "bail-in" and paid $900,000 to lock in a fixed rate on one of his properties. Numbers showed that he'd have it back in about 3 years. 

Section 8 isn't my bag, but I'm only chiming in to say that I don't believe there are any lending programs that have different terms for property used as a Section 8 Rental.

Now there are local programs in the Greenville Community that are in place to entice people to rent to Section 8 tenants. I don't know of them specifically (I still need to schedule a call with the Community Development Coordinator), but these can be tax incentives, down payment assistance, etc. It just depends on your local community's goals and what's passed by the County Commissioners or City Council.

I'd start with reaching out to your local Zoning Board and talking a bit with them. 
 

 Thanks, Caroline!

1) Can you elaborate a bit more on the economics of the increased bank reserves? Does being require to hold more reserves simply mean "they're not going to lend as much" or "tighten their lending policies"? 

2) If that is the case, are the interest rates a secondary, automatic result of free market lending (I use 'free market' very lightly), or are banks consciously going to increase their interest rates to deter lending so they can meet their reserve requirements?

3) Is this going to increase the complexity because the investor now has to scour the lenders for a loan that'll meet their needs? 

4) Do we need a lender in each state that we invest in because banks, due to tightening lending, will be less likely top underwrite a loan that's out of state, or is there specific state regulations that you're seeing that will complicate the lending process even more?

Thanks!

 Sooooo... I think I'm confused. Can you please elaborate a bit more on the situation? Want to be able to help, but I feel like I'm missing something. 

 @Luke Carnahan, here's how I do it:

https://youtu.be/TBoRtVc9Bus

May need a minute to get finalized.

 I'm still new to city/state analysis, but what I have learned thus far is to watch the Population, Jobs, Rents & Median Home Price/Household Income trends. This gives you a 'bigger picture' view and can show you a city/state that's making a comeback from a low point. The tip of the Belle Curve.