All Forum Posts by: Amy Verges

@A.K. Ahuja Man this is a tough one. I think a lot of it depends on your personal financial situation.  Since it sounds like you're financially stable and can afford it, I think I would just sell it and pay off the difference.  I know it would hurt to drain savings, but I've always heard that no investment is better than a bad one.  It would be worth it for me just to have a clean slate and the knowledge that you can move forward from that point.

All that being said, we are in an interesting time and @Brandon Johnson brings up some good points.  You may very well be able to get some mortgage forbearance and may be eligible for additional assistance moving forward.  If you're willing to stick it out, you can maybe get through it until the value comes back up.  I still lean toward getting rid of it though just because I personally wouldn't want to deal with the stress of it hanging over my head. 

If nothing else, it sounds like this has been a good learning experience for you, so hopefully that counts for something. Good luck moving forward!

From what I understand, asbestos is only dangerous once it's released into the air. So if you have asbestos flooring (it looks like I may actually have this in a home I'm looking to flip), I was told by a contractor that it's only dangerous if we were to remove it.  Our plan is to just put the new flooring right on top.  You do need to disclose it in the property disclosure if you're going to resell it though.  From my experience in insurance, the only risk I came across was with asbestos siding.  Quite a few insurance companies will not write a policy on a house with asbestos siding.  One of my go-to inspectors here in town is Kevin Dinkel with Advantage. I know he does mold remediation and has a contractor background, so he could probably give you some guidance as well. Hope that helps a bit!  

@Christopher Stacy I second what @Jonathan Hulen said. I did a HELOC on an investment property with PenFed a couple years ago and now I'm doing my second one with them on another investment property. It's been a good & easy experience for me so far working with them.

Welcome @Daniel Vincent! I'm here in Baton Rouge as well. I started investing first, then got my realtor license a few years later. I would encourage you to ask yourself WHY you are thinking about getting your license. If the main reason is to simply learn more about the local market and get involved in the real estate world, there are plenty of other resources to do so (we have a great local REIA, plenty of real estate events--although that's on hold at the moment, and lots of local investors willing to meet and share info). @Charlie Cameron hit the nail on the head when he said that the hard part isn't getting your license (that's relatively cheap & easy), it's lead generation. I've found some success as a realtor (somewhat accidentally) because I was already involved in the local real estate world and had built up a network. I personally got my license because I wanted access to the MLS and other resources, plus I had trouble finding an investor-friendly realtor to work with. I looked at it more as a tool and didn't expect to gain any significant income from it, so when that came it was just an added perk.

If you WANT to have a career as a realtor and that appeals to you, then go for it!  But it will be a lot of up-front and on-going work to build up a network and get business, so make sure it's something you really want to do. If you're just looking at it as a stepping stone to investing, I don't think it's necessary.  Hope that helps!

Thanks @Brandon Johnson!  @Maurice Watkins I sent you a PM.  I also have a few good contractors I can introduce you to as well.

@Jesse Mao Oh, just realizing you had initially asked for the rent/price ratio!  But yes, I prefer the rent/cost ratio personally.  Appreciation in BR over the past two years is a little tricky because property values (especially for those that did not flood) were artificially inflated for at least a year or two after the flood of 2016.  I bought a duplex in summer of 2017 that has not appreciated much as of now.  At the time, it was very competitive and I was up against two other offers.  I paid a little more than I was planning for it, but it was still 1.3% rent/cost ratio and I plan to keep it long term, so I wasn't worried about the immediate appreciation.  I'm also confident in the steady long-term appreciation and cash flow here.  I had bought another duplex (that's right next door) in 2013 for $114k.  At the time, rents were $750 each side ($1500 total), and now rents are $1050 each side ($2100). Comps put it at a value of at least $180-190k, but I'm refinancing it at a valuation of just over $200k.

Just be careful of neighborhood/location. We have some rough areas that can be tempting because of how the #s look on the surface.  If you're thinking of investing in Baton Rouge, I'm happy to talk more details over the phone.  Shoot me a DM if so.

@Jesse Mao While a lot of properties in Baton Rouge flooded (41k homes flooded out of about 190k homes total in Baton Rouge) in the "Great Flood" of August 2016, a big portion of the significant damage happened in the suburbs of Livingston & Ascension parishes.  In the data I found, about 1/3 of all homes in Ascension Parish flooded and around 75% of all homes in Livingston Parish were considered a total loss.  In terms of the rent/cost ratio, I personally shoot for between 1%-1.5%.  You can get higher than that in certain areas, but I'm picky about the location/neighborhood.  Hope that helps! 

Welcome @Travis Honore...and Geaux Tigers!! Be sure to check out our local REIA called the "RING" that meets on the second Tuesday of every month. Obviously in-person meetings are on hold for now, but you can get on the e-mail list at meetup.com to be notified when they start meetings back up. Good luck!

Hey @Nathan Vu, congrats on your first investment!  I've heard good things about Cozy from other landlords. I own a professional property management company (here in Louisiana!) and we always require any resident over the age of 18 to submit a separate application.  The main reason being so we can run a criminal and eviction background check on each person.  Sometimes a couple will have just one person submit the application if the other doesn't have a clean record. 

Regarding the lease, I would recommend having a local real estate attorney review it for you so it's appropriate for your state. For instance, in Louisiana you're allowed to add a tenant waiver to your lease in which the tenant waives the requirement of a written notice of eviction and allows you to immediately begin eviction proceedings when necessary. Hopefully you never need this, but it's a huge benefit to you as a landlord if/when you do.

I know quite a few people using Cozy that are happy with it.