All Forum Posts by: Tanner Sherman

Your closing costs seem low but other than that it looks like a solid deal. 

The closing costs seem extremely low to me, and I would raise the CAPEX and maintenance reserves a little bit. Also, would you be doing an FHA? The down payment seems off.

I have worked with lenders that take into account your investment accounts. They like to see that you aren't flat broke, but don't always need you to keep that money into an easily liquidable account. I hate the adult diaper answer, but IT DEPENDS. Talk to multiple lenders and see what they need before you start the process. Try to remember that you are bringing them an opportunity and not begging for money. 

Honestly, I really love this question. I would have to say that the curtain rod would be easier, but if you are worried about caulking and don't want to risk water damage then the glass doors might be worth the investment. I have kids and I know damn well they do not always close the curtain and I especially know when the tiles in the bathroom become uneven because of the water that gets trapped under them. 

To be honest, I would still go with the curtain. But hopefully I gave a good devil's advocate perspective. 

First, I don't see that as an ad, I see it as an opportunity. 

Second, I don't thin it is any more difficult to navigate the site than before, and a new layout is refreshing.

Third, I appreciate you opening this forum to initiate the discussion and get the opinions of others. Hopefully you saw the survey link at the top of the page as well.

I hope you can find a way to enjoy every topic, even the ones that you have to scroll down for more than twice, (#FWP)  as a lot of people are looking just to get a single response on posts such as this one. 

If you live in a state that is $100 online to start an LLC and you sleep better at night knowing that your assets are protected then that's your call. I personally don't see any benefit to doing that, and would only even open a second LLC after 3 or 4 rentals are in the same one. You'd be find just having one LLC and a good umbrella insurance policy for CYA. There wouldn't be any tax benefit to doing it like this.

Far too much risk for a hard money lender. I've seen some that require cash the day of. If you can find a hard/private lender willing to do money orders/cashiers check in hand maybe you could get it to work. Best bet for that asset class would be to HELOC a property and use that money as cash.

I think that is your best bet, if they pay their rent and don't destroy the property then there is no reason to raise a stink over it. I think you made the right decision. It's almost like a tenant having a baby and claiming you didn't agree to it when signing the lease. Best play is to ask them to make you aware that there is another person living in the property. Good relations for giving them the win is more valuable than having to find a new tenant with the "grass is greener" mentality. 

If your goal is to have a little extra money come retirement, I would try to take a HELOC on your house, pay "CASH" for a property either at auction or off market, fix it up, refi your money out and do a 15 year loan, pay down the 401K at a normal rate and take the cashflow from the properties to pay down your mortgages in less time and then at 10-12 years you have a paid off property or two and can sit on that rental income. From there you can decide if you're comfortable or if you want a few more rentals.

I love the idea of the stack, such as from 7 years to 7 figure wealth. If you start off with a property or two, save the cashflow and your CAPEX/Maintenance reserves, then acquire a new property after you've gained some equity. You can BRRRR out of each property without completely overleveraging yourself, and eventually start taking out HELOCs to help with your bigger deals. Make a goal of not over leveraging and say maybe you won't buy a new place until you have a 60% LTV on the last property, which will allow you build up your reserves and/or pay down your loans faster depending on how you purpose your cashflow.