All Forum Posts by: Shane Welch
Shane Welch has started 26 posts and replied 60 times.
Post: How to take a hold fee electronically?
- Norfolk, VA
- Posts 65
- Votes 15
Originally posted by@Ben Sears:
It depends on how organized you want to be. There are several "regular" electronic transfer options like PayPal, Venmo, etc. If you want to get them to go ahead and sign the lease you can use Cozy and send them a one time bill for them to pay online. All of the above are free depending on how they choose to pay.
I will be charging them this hold fee before they sign the lease, which they want to do in 2 weeks. So paypal sounds like a good one to do. Am i okay to use my personal paypal, or should I set up a business one?
Post: How to take a hold fee electronically?
- Norfolk, VA
- Posts 65
- Votes 15
I have a applicant that wishes to place a hold on the unit for a fee. This applicant currently lives on the other side of the US and is moving here in two weeks. What is the quickest and best method for collecting that money and putting it into my business savings set up for their deposit?
Post: Where to conduct a tenant lease signing?
- Norfolk, VA
- Posts 65
- Votes 15
I am ready to sign a lease with my tenant, but i am unsure where to have them sign. I do not have a formal office and believe it would be inappropriate to do it in my house. Is there a place we can meet, like starbucks, or what is a place you would recommend we go to sign a lease?
Post: Land Surveyor Needed in Norfolk VA
- Norfolk, VA
- Posts 65
- Votes 15
Not sure if this is allowed but I figured someone may know.
I am a real estate investor/civil engineer student. I am taking a Land Surveyor class and need to find someone licensed who would be willing to mentor me for the semester. (20-40 hours over a 16 week span). If you are, or know anyone licensed and think you or they would be interested in helping me out It would be greatly appreciated.
Post: No Money Down BRRRR?
- Norfolk, VA
- Posts 65
- Votes 15
Hey Andrew, thanks for the comment!
From what I'm gathering, as long as the numbers work, this seems like a decent way to start out BRRRing
Originally posted by @Andrew Powers:
VA or FHA could work but just would need to consider the extra costs of double closing (when buying and then at refinance).
Do you mean 203k construction loan?
If FHA or VA often times if the house needs lots of work, which probably does if doing brrrrr, then it probably would not pass loan requirements. If you dont know the rules, look them up and you'll see the strict house requirements ie no chipping paint on the walls, etc.
Some other options are private money, hard money. I recommend looking at the ultimate beginners guide to rei from BP and it has a section on financing deals.
Post: No Money Down BRRRR?
- Norfolk, VA
- Posts 65
- Votes 15
I'm looking to House Hack so having to live in it for a year is completely fine.
Post: No Money Down BRRRR?
- Norfolk, VA
- Posts 65
- Votes 15
With enough for either a down patmore, or renovations but not both. Would BRRRing either with a VA loan or FHA loan work?
On the other hand, what about a FHA 401k? The loan that adds in the renovation cost.
Are either of these options okay to go with to BRRRR? Is one better than another? I understand that they are not preferred, but I have to work with what I got. And no saving another 20-30k is not an option anytime soon.
Post: Am I ready to purchase my second property?
- Norfolk, VA
- Posts 65
- Votes 15
@Mike Roy I think I got a good deal only because of the huge headache it was, horrible tenants that have been there 5 years with no ups in rent, and extremely outdated. But the military base location was keeping it rented for still a 800 price tag, I could push 1,000 when I finish all my renovations.
I have been doing all the rehab myself so its kept cost down, but i still suspect i will be putting in 12-15k total to bring it to where i want it. Im in one side, and the last headache tenant just left, so not its just us for a couple of months (im covering the whole cost myself, its not a huge issue).
From what im taking in from your advice, as long as I use caution, quadruple check numbers/ cash flow. It wouldn't be a terrible idea to use a FHA loan for my second property? After this I will start saving to do BRRRR.
Post: Am I ready to purchase my second property?
- Norfolk, VA
- Posts 65
- Votes 15
Unless I am mistaking what you mean, the cash flow has been pretty decent. $1600 income on a $1150 monthly payment, after taxes/expenses/cap ex, im looking at $200 a month, however after the rehab, comparable put me at $2000 monthly income, which is $600 net.
I still plan on House Hacking the next deal as well, so that will also help cut some of my risk. I defiantly understand not wanting to be over leveraged, and as my second property with would also be my last ability to get low down payment financing.
Should I just suck it up and stay in this place for a couple more years till i can save up for a traditional finance? or sell it? Im also wanting to move into a bigger place now that my family is about to add another.
Should I wait? Or will it be fine as long as I make sure my cashflow is past a certain % of the mortgage?
Post: Am I ready to purchase my second property?
- Norfolk, VA
- Posts 65
- Votes 15
Is it too soon or a bad idea to buy my second property right now?
Last June I bought a duplex using a VA loan with no money down and boy has this been a hell hole. Problems and problems, but once It's complete It will be bringing in some decent monthly income. My family and I have been house hacking it and slowly renovating our unit and will do the same to the other side.
I would like to out offers on another duplex/triplex starting this month, and use a FHA loan, and will move into the property in June, to fulfill both the VA loan/FHA loan 1 year requirement. I want to get a place that is more turn key than this last one, and my question is if i'm being too ambitious or if this could work out well.
Thank you, let me know if you need any more info guys.