All Forum Posts by: Travis Pirtle

I know this doesn’t answer your question, but 1500 for a 3/2 in the Schaumburg area seems very low. I would think closer to 1750 minimum. 

I've finally convinced myself to pursue a HELOC on my primary residence to fund the down payment on my next rental property, but the speculation of additional rate hikes has me nervous. I've contacted a few lenders, and they do have ceilings in place for their variable HELOC loans, but they are very high (15%+).

For those who have HELOC'd to fund rental properties in the past or believe in that philosophy, do you still believe it's a good time to do so? Or does the risk of significant rate hikes in the near future put the pause button on this strategy for the time being?

Hi all,

I purchased a property with a good friend 7 years ago. We each put down 50% of the down payment and split the cost for new paint, appliances, and small repairs needed prior to listing the unit for rent. We agreed up front to a buy and hold strategy with no profits drawn until we decide to either sell or buy a 2nd property.

We self-manage and I have handled all the bookkeeping and day-to-day operations (of which there are few).

We have been fortunate to do very well with this property in terms of cash flow ($550/month), appreciation (63k to about 110k), and tenant turnover (none!)

Unfortunately, we were sloppy in our setup of this partnership. The loan is entirely in my name and we have no partnership agreement or operating agreement of any sort on paper. I'm sure you can all see how this has the potential to go south.

We are seeking advice on the best way to protect both of us. I know an LLC would give us 50-50 ownership, but the due on sale clause worries me. I have been told by an attorney it's extremely unlikely for an account that is in good standing, but I am looking for more opinions there. Could we get by with a simple Partnership Agreement?

We also know that someday we will want to sell. Assuming we don't do a 10-31 exchange, how do I go about (legally) transferring a large sum of money to him without being hit with the Gift Tax? An LLC would solve this problem, but would a Partnership Agreement? I am entirely confused on how to go about this part of it.

This property is in Chicago, IL.

Thanks in advance! 

Hello everyone - longtime browser, first time poster. 

I am in the process of purchasing my 3rd investment property. I currently own two single-family condos, one in DuPage County and one in Cook. 

For my 3rd property (also Cook County), I started the process with the lending company I used previously. The broker, who I always deal with, quoted me at 6.6 interest rate. I was shocked at the high rate. He assured me that this is typical across the board with any bank loan on an investment property in Cook County and the rate will be the same no matter what bank I go to. Can anyone confirm or deny? It’s not a deal breaker, but certainly want to find a better rate if one is available. 

Thanks!