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All Forum Posts by: Tabitha Bean

Tabitha Bean has started 1 posts and replied 19 times.

Post: Rental needs emergency repairs, personal DTI too high for personal loans

Tabitha BeanPosted
  • Rental Property Investor
  • Washington, DC
  • Posts 19
  • Votes 11

@Jenny D. Thanks for the encouragement. My gut said jump, so I did!

Post: Rental needs emergency repairs, personal DTI too high for personal loans

Tabitha BeanPosted
  • Rental Property Investor
  • Washington, DC
  • Posts 19
  • Votes 11
Quote from @Jenny D.:
Quote from @Tabitha Bean:
Quote from @Jenny D.:

@Tabitha Bean..

Curious. Where in DC is your property located?


 SE DC where rents aren't yet where we hope they will be in 5 years.

Yes! I know it well. Lived in DC for a number of years. I can kick myself for not investing in the 4 plex 15 years ago...lol. I do have a property in NE. Definitely an excellent investment! 

 Haha, you're telling me! What was selling for $70k 15 years ago is $850,000 today! I'm glad to hear that someone is making some money on an investment in DC. I hope this one turns around for me so I can share your sentiment!

Although I oscillate between trusting my gut on this one and feeling like a fool for getting myself into this mess, I've only had the thing for 8 months and made a tremendous amount of progress. I have been spoiled by the ease of income with my other properties. I am really having to work for this one. 

Post: Rental needs emergency repairs, personal DTI too high for personal loans

Tabitha BeanPosted
  • Rental Property Investor
  • Washington, DC
  • Posts 19
  • Votes 11
Quote from @Trevor Neale:

@Tabitha Bean

I wish you all the best !! Be strong and it will work out. Some people post here kicking people while they are down. Gesh helping someone is not that hard. Just share some options or some of your knowledge . We all started from somewhere . All the best Tabitha

 Thank you Trevor! I appreciate that very much. Cheerleaders are one of my greatest assets right now.

Post: Rental needs emergency repairs, personal DTI too high for personal loans

Tabitha BeanPosted
  • Rental Property Investor
  • Washington, DC
  • Posts 19
  • Votes 11
Quote from @Matthew Paul:

@Tabitha Bean  Nothing is cheap in the DMV area . Thats been the case for years .  Depending where your hometown is , I can see you getting sticker shock . 

But the prices you are getting are not as bad as some are saying . I am a contractor , I just did a complete gut rehab on MY property , I only called my AC sub out for the HVAC , that was 10K for new unit and duct work . I didnt use my subs , I used my 2 sons and 1 of their friends as labor to give them a learning experience , it was 900 sq ft , and not including HVAC it was 40K in materials , NO labor .  And it was done evenings and weekends . Took almost a year . ( I was in no hurry ) 

Its not expensive in the DMV area , this is normal , Its just cheap in other areas and those people dont realize how good they have it , ( until they move here ) 


 Yes, that sounds more in line with what I'm dealing with, except we aren't trying to rehab for downtown or NoMa levels, we are just shooting for solid work that will last through these up-and-down waves of gentrification. The property wasn't cheap, so I need that unit to pull it's own weight, and don't want to be in a position in 3 years of having to go back in and update everything in order to get a base rent for the neighborhood.

I will say that I am glad I bought in DC because this has been a crash course! I think I could go into any market after this and it be a breeze! I will not invest again in DC, looking to move into easier markets after this for sure.

Post: Rental needs emergency repairs, personal DTI too high for personal loans

Tabitha BeanPosted
  • Rental Property Investor
  • Washington, DC
  • Posts 19
  • Votes 11
Quote from @Matthew Masoud:
Quote from @Tabitha Bean:

My novice status will show here...I recently purchased a 4-unit multi-family property in Washington, DC. Though this has seriously boosted my net worth, it has stuffed my cash flow into the trash.

I have a significant amount of equity in this and other properties, but thanks to this property shooting my DTI so high, everywhere I go I get shot down for HELOC's and personal home improvement loans. I did some research on Fund & Grow, but it makes me feel uncomfortable because I have no experience with something that CREATIVE. I have one high credit card balance that I am able to pay down now, but I can't even apply for Fund & Grow's services for 3 months after the balance is paid down.

My contractor and crew are waiting for the word today though. This is a real growing pain for me as I am leveling up as an investor. I am feeling discouraged because I am hoping to continue to grow my portfolio, excited to purchase more single-family homes without any doubts about my ability to manage my portfolio with great success. But not if I am stuck without any access to financing. I think this is a knowledge issue and that many of you out there know ways to turn this situation into a fairly simple solution.

Grateful for any advice!


 First, $45k rehab for a single unit is crazy. I'd get other quotes to be sure the pricing is right. Full gut rehabs, in my experience, cost about half that. 

Sounds like you'll need hard money but be sure you have a strategy to refinance and pay them back after the rehab.

@Matthew Masoud sounds like my next investment area should be where you're rehabbing, cuz DC ain't that.

Post: Rental needs emergency repairs, personal DTI too high for personal loans

Tabitha BeanPosted
  • Rental Property Investor
  • Washington, DC
  • Posts 19
  • Votes 11

@Trevor Neale and @Wayne Kerr I agreed at first, we were floored by the estimate. It was at least more than double what we were expecting. 

I have had 2 contractors come to give estimates. The first was $25k, without AC, cabinets, countertops, shower/tub, or bathroom vanity included.

It is such a small space that we couldn't believe the cost. We could get a 3rd contractor to come out. In this city, there are a zillion contractors I can call and if 2 show up to do the work I would be extremely lucky.

My first rental is in my hometown where things make so much more sense to me, easy to get reliable folks at reasonable prices. DC is a WHOLE different animal.

I'd love to hear from anyone else in the DMV about their experience with rehabs and the cost. 

I have to do my day job now but can compile photos later to post.

Again, so grateful for everyone's input here! I am loving this.

Post: Rental needs emergency repairs, personal DTI too high for personal loans

Tabitha BeanPosted
  • Rental Property Investor
  • Washington, DC
  • Posts 19
  • Votes 11
Quote from @JD Martin:
Quote from @Tabitha Bean:
Quote from @Matt Devincenzo:

I think you need to back up to the beginning and share the short version of the property's story. Where is it, how much did you buy for, what are current rents, what are stabilized rents, what does it take to get to those rents, what rehab must be done, what are you trying to do...

A unit rehab is not an emergency. Needing to do it for cash flow isn't an emergency. Feeling pressure that it will solve your DTI/CF issue isn't an emergency. Those are all planning issues, and the above answers will help you formulate a plan. I think your situation may be better than you think, but you're focused on one issue and one supposed solution.


 Haha, I feel like there is no short version when it comes to this property. First, though I do have 2 other income-producing single-family homes, I work full-time as a teacher, have 3 kids, and live in an insanely expensive city. After listening to lots of Bigger Pockets podcasts, I had a goal to level up and buy a 4-unit building, even though I knew I couldn't actually afford it AND that the property itself did not currently meet any of the metrics for being a good investment. But that same exact story is true of both of my other investment properties that are now netting me over $1k each per month.

The building is in Southeast Washington, DC, a neighborhood that has a bad reputation, but with the entire rest of the city exploding into a kind of gentrification I've seen nowhere else, it is inevitable that it will eventually swallow up that area as well, eventually....

Truthfully, I purchased high and knew the situation with the neighborhood: lots of voucher tenants, low rents peppered with luxury units popping up here and there, crime, the reputation, all of that. Only one tenant conveyed, the other units were vacant and I was able to market the units for what I consider high rents for the neighborhood. They are each rented for $1,550 a month and are mostly renovated.

We learned during inspection that the occupied unit would need significant repairs. My realtor was able to negotiate with the seller for funds put into escrow for some repairs once the tenant vacated. The tenant vacated with 6 hours' notice, and the non-profit paying their rent gave no notice and will not participate in any discussions about the condition in which they left the unit. The damage from tenants is so significant that all the walls must be demoed and replaced, doors, windows, flooring, kitchen and bath. So what we thought would be repairs initially, has turned into a gut job.

It feels like an emergency to me because I have a family to support and I can't have the property destroy my portfolio or my finances. I acknowledge that to most others this one would have been a hard pass, but for me, this is what I am doing and I believe in my ability to make this a very profitable venture for my family.

Can my other properties float this unit and leave it vacant? Absolutely. Is that going to make me any money or allow me to rehab the unit any time soon? Absolutely not.

I was heartened by your comment that these are planning issues, not emergencies. It does feel very urgent for us because we need the unit rented and paying its portion of the mortgage because if it is draining our coffers we don't have anything extra in case another unit goes vacant, a roof blows off etc. I posted my question here because I knew there were tons of seasoned folks in this community who could help me see past this bump in the road and create a map that gets us to the other side.

I currently have close to $1.3 million in mortgages on my personal credit. I have excellent credit and no other loans etc. But the mortgages are killing my personal DTI, even with 2 income-producing properties! I am not eligible for HELOC's for either property and every bank I've spoken with, even credit unions, say my DTI is too high to qualify. My partner and I applied together, with a very reasonable combined income, but still not enough for a bank to say cool let's do this.


 Are you sure? Post some current pictures of the unit up here. It's pretty hard for old tenants to require you to replace windows unless they just smashed them out altogether, and even then you can get replacement glass in sashes that won't be gassed but will save you a ton of money right now. You would be amazed at what can be saved. 

I suggest, given your current financial situation, that you post up some good pictures of what you are dealing with. I can build a house from the dirt to the roof myself and have reno'd a lot of houses so I am sure I can offer suggestions as will a lot of others here that have extensive experience with remodeling. Right now your main goal needs to be stabilization and occupation, not customization and rent maximization.

Thank you! Your last words are a very different perspective than where we have been. The market here is so competitive that my main focus has been just that: rent maximization. I'm going to chew on that for a minute. 

Post: Rental needs emergency repairs, personal DTI too high for personal loans

Tabitha BeanPosted
  • Rental Property Investor
  • Washington, DC
  • Posts 19
  • Votes 11
Quote from @Caroline Gerardo:

You got several good suggestions to tap amounts to have cash to do the repairs. You insist you won't sell.

As a teacher you have winter break. You need to dig in and do some of the rough work. I don't know how far you are from DC, and if you have family to watch your three children. Tool kit, sleeping bag, security measures, work clothing and go there- rip out the drywall that's damaged, sounds like the flooring is ruined as well. Haul these to dumpsters and do this as cheap as possible (means getting tickets for dumping in business dumpsters but is cheaper than driving to the dump). Okay what is really wrong with the unit? How handy are you? Can you install new drywall? Can you install linoleum flooring?  Scrape and clean everything down that you can do. Now today after school you are going to begin to watch 100 Youtube videos on DIY demolition and rehab. You can learn to do drywall, install flooring, paint, resurface a tub. Some of the plumbing parts and materials can be put on a Lowe's and Home Depot cards. Have your contractor only work on the really hard things you are afraid to tackle - electric and plumbing.   Secure the unit like Fort Knox NOW.


 Haha Caroline, that's my style! I am pretty handy and I've had the kids in every one of these units and all my rentals. I actually love this as a side gig because I love home improvement projects. My contractor already knows that I'll be there half-time helping out.

Post: Rental needs emergency repairs, personal DTI too high for personal loans

Tabitha BeanPosted
  • Rental Property Investor
  • Washington, DC
  • Posts 19
  • Votes 11

@Marcus R. and @Jeremiah Dunakin

Thanks for your encouraging comments. I need those right now! My partner and I have both scraped up all our options, and the cash/borrowing power we have doesn't get us near the number we need. Initially, we thought we were looking at repairs to the unit. But upon the tenants vacating with 6 hours' notice, we quickly learned repairs had become a gut job instead.

I was hoping someone would mention an experience they had with Fund&Grow here because a foray into business credit seems to be our best option.

Again that you both for your encouragement and great suggestions.

Post: Rental needs emergency repairs, personal DTI too high for personal loans

Tabitha BeanPosted
  • Rental Property Investor
  • Washington, DC
  • Posts 19
  • Votes 11
Quote from @Matt Devincenzo:

I think you need to back up to the beginning and share the short version of the property's story. Where is it, how much did you buy for, what are current rents, what are stabilized rents, what does it take to get to those rents, what rehab must be done, what are you trying to do...

A unit rehab is not an emergency. Needing to do it for cash flow isn't an emergency. Feeling pressure that it will solve your DTI/CF issue isn't an emergency. Those are all planning issues, and the above answers will help you formulate a plan. I think your situation may be better than you think, but you're focused on one issue and one supposed solution.


 Haha, I feel like there is no short version when it comes to this property. First, though I do have 2 other income-producing single-family homes, I work full-time as a teacher, have 3 kids, and live in an insanely expensive city. After listening to lots of Bigger Pockets podcasts, I had a goal to level up and buy a 4-unit building, even though I knew I couldn't actually afford it AND that the property itself did not currently meet any of the metrics for being a good investment. But that same exact story is true of both of my other investment properties that are now netting me over $1k each per month.

The building is in Southeast Washington, DC, a neighborhood that has a bad reputation, but with the entire rest of the city exploding into a kind of gentrification I've seen nowhere else, it is inevitable that it will eventually swallow up that area as well, eventually....

Truthfully, I purchased high and knew the situation with the neighborhood: lots of voucher tenants, low rents peppered with luxury units popping up here and there, crime, the reputation, all of that. Only one tenant conveyed, the other units were vacant and I was able to market the units for what I consider high rents for the neighborhood. They are each rented for $1,550 a month and are mostly renovated.

We learned during inspection that the occupied unit would need significant repairs. My realtor was able to negotiate with the seller for funds put into escrow for some repairs once the tenant vacated. The tenant vacated with 6 hours' notice, and the non-profit paying their rent gave no notice and will not participate in any discussions about the condition in which they left the unit. The damage from tenants is so significant that all the walls must be demoed and replaced, doors, windows, flooring, kitchen and bath. So what we thought would be repairs initially, has turned into a gut job.

It feels like an emergency to me because I have a family to support and I can't have the property destroy my portfolio or my finances. I acknowledge that to most others this one would have been a hard pass, but for me, this is what I am doing and I believe in my ability to make this a very profitable venture for my family.

Can my other properties float this unit and leave it vacant? Absolutely. Is that going to make me any money or allow me to rehab the unit any time soon? Absolutely not.

I was heartened by your comment that these are planning issues, not emergencies. It does feel very urgent for us because we need the unit rented and paying its portion of the mortgage because if it is draining our coffers we don't have anything extra in case another unit goes vacant, a roof blows off etc. I posted my question here because I knew there were tons of seasoned folks in this community who could help me see past this bump in the road and create a map that gets us to the other side.

I currently have close to $1.3 million in mortgages on my personal credit. I have excellent credit and no other loans etc. But the mortgages are killing my personal DTI, even with 2 income-producing properties! I am not eligible for HELOC's for either property and every bank I've spoken with, even credit unions, say my DTI is too high to qualify. My partner and I applied together, with a very reasonable combined income, but still not enough for a bank to say cool let's do this.