All Forum Posts by: Steven M.

If I was moving to a new town and looking for an investor friendly title company, I would not bother cold calling title companies or taking recommendations from realtors. I would ask other investors in the area which title companies they use. There are likely 3-4 title companies in your area that work with investors all the time and understand the things we like to do (double closing, assignment, alternate funding sources) and are comfortable helping. Often title companies that work with investors sponsor the local REIA groups so you will see listed on web sites and newsletters. If nothing else call the people who advertise they buy homes in your town and ask them who they use for title and ask to added to their buyers list - you will kill two birds with one phone call.

Looking at the world right now I would not be investing in a college town for the purpose of renting to students or staff. Even if you assume best case that all colleges will survive, the forced online learning experiment is surely going to reduce the demand for college housing. Then factor in risk for a worst case scenarios where many colleges fail and the current model of student learning and/or student loans fails.

If I had rental properties in a “college town” where the college was the main source of revenue for the population, I would be a seller right now. Cash them out while the market is strong and 1031 into something less likely to fail. For better or worse, Covid is transforming our educational model and we don’t know what it will look it 5 years, but it will not be the same as it was 5 years ago.

The funds you are receiving as rental income is taxable and should be reported to the IRS annually on your tax return (or the entity you are using to collect the rent under). Assuming 10 years goes by and you are able to eventually gain ownership of the properties, you would pay capital gains tax if/when you sold them.

I had a good experience with Enterprise Property Management in Memphis and would feel comfortable recommending them. I would avoid Premier Property Management which was probably the worst management company I have ever worked with in any state.

If you advertise on Zillow, their tenant screening tool is pretty good and a lot less expensive than most. Also, if you have to decline somebody they can reuse their Zillow screening for other properties advertised on Zillow for up to 30 days. Makes it less painful to decline than when somebody paid $40 or $50 for a one time use report.

Not every deal works out and eventually everyone will get upside down or sideways on a deal if they do enough of them. You seem to have a great attitude about it which will help you get through this.

I have always found it is best to sell/dump a property for what you can get when you are in over your head on the deal. Take the loss if necessary. The alternative of trying to hang on and find a solution drains energy, momentum, motivation, and your checking account. It is not likely the situation will get better from a P&L perpesective over the short term, and you can likely make up the loss on the next deal if you get rid of this one and move forward.

In additional to PenFed, Wells Fargo and TD Bank which will also do HELOC on rental properties.

I agree with Steve V comment above. If you are tired of them, sell them. Bank the profit and smile, or 1031 into something else you like better. Now is a perfect time to dump properties you do not love to own.  By asking the question I suspect you are probably ready to go another direction. The SFM sellers market that exist today will end at some point - probably sooner than later.