All Forum Posts by: Tim S.

Another option is to rent a water softener. That's what I do. It costs about $30/month but they will come every couple months to check the softener and fill the salt. All maintenance is also no additional cost. If it craps out they will fix or replace it with a new one free. Not to mention it saves on your plumbing. I consider it an investment to prolong the life of my plumbing, fixtures, and (water heater).

Thanks I appreciate the advice!

Being new to REI my biggest challenge in 2017 will be to educate myself as much as possible to help make the best and smartest decisions. My goal is to buy two SFHs in 2017 as my first rental properties.

When I find a 3 bedroom SFH I would like to move into it and rent out my current 2 bedroom

Mark Poulton thanks for the response. So which one is more popular or appropriate for BRRR? I hear them both talked about in the BP podcasts and on the forums. I'm just starting out trying to educate myself as much as possible before I jump into it.

I currently live in a 2 bedroom SFH purchased for 36k (bank loan of 30k and 6k down payment). I am now interested in purchasing another similar home except with 3 bedrooms. I will again be using the bank to finance the home but I would like to use the equity in my current home. My question is what is the difference between a HELOC and a cash out refinance? What are the pros and cons? Thanks!

Mind if I ask the purchase price, reno cost, and ARV were? Maybe we're your reno cost last year was artificially low? If you didn't have much reno costs to begin with then it sounds like you made out pretty well anyway even with a loss this year.

Another problem I have read about on BP with PayPal relates to problem tenants. If they make a payment to you of $1 as a rent payment it is automatically accepted via PayPal and it counts as them making a payment. This can make it more difficult for evictions in court. Whereas with a check if the amount is not correct you don't have to cash it. I don't personally know how true this problem is but I thought I would pass on what I've read on other threads.

Also is home equity loan the right route for BRRR?

A couple years ago I bought a foreclosure as a primary residence and first home. Purchase price was 36,000 with a conventional loan that is nearly paid off. I have been putting some work into it while living here and it is now almost completely remodeled. It should be worth about 95k now. Since it is only 2 bedroom we will soon be outgrowing it and I would like to look for a 3 bedroom foreclosure and rent out our current home. I thought I would take a home equity loan to fund the next house. However, from reading other posts I read a lot about home equity loans only being approved at a max of the original purchase price. Is that accurate or am I misunderstanding? If the house is now worth 95k can I get 70% of that (66k) or will I be limited by the original purchase price?