All Forum Posts by: Frankie Woods
Frankie Woods has started 29 posts and replied 1243 times.
Post: HELOC on a rental property: is it possible?
- Investor
- Arlington, VA
- Posts 1,285
- Votes 491
PenFed requires W2 and tax returns
Post: Bob Green - Rental Property Lending Group
- Investor
- Arlington, VA
- Posts 1,285
- Votes 491
Thanks for sharing your experience! I plan to do a deal with @Bob Green in the near future after I close on my Primary.
Post: New Investor from Albuquerque, NM
- Investor
- Arlington, VA
- Posts 1,285
- Votes 491
@Krishn JAISWAL welcome to the wonderful world of BP. Introducing yourself can be a little intimidating so congrats on taking that first step. I'm also investing in ABQ and looking to expand my efforts there. If you'd ever like to chat, I'd be more than happy to. There are some pretty great REAIAs here as well if you aren't already attending.
Post: Using Schwab Secured Line of Credit
- Investor
- Arlington, VA
- Posts 1,285
- Votes 491
For tax purposes, where the loan comes from doesn't matter. The interest is an expense that you should income on your tax returns.
Post: Lease Purchase vs Renting Out
- Investor
- Arlington, VA
- Posts 1,285
- Votes 491
Originally posted by @Curt Smith:
In addition to Matt's sound business practice of fixing the home, most states which includes mine GA, tenant law says; landlord may not contracturally transfer responsibiltity of maintenance to the tenant, its always the responsibility of the landlord..... Which I agree. Leaks under the sink, tub, I want to be told about and I'll fix.
Higher rent is theoretical, tenants regardless of wanting to buy or not, can only afford (and qualify for) so much rent $$$/mo. The market rent is typically at the max the property can carry.
Also forget about rent credits in the Dodd Frank env. Plus tenants never ask, I never offer!!! I really do rent to own wanting to have the property sold at the end of the option period!!!! Some investors use rent to own as a means to get higher quality tenants.... I personaly do not subscribe to putting unqualified tenants into a home taking their option fee fully expecting them to fail and never buy!! Ethics and what you do to folks comes around sooner or later. :)
To be very safe (and ethical) run the tenant / buyer through a mortgage broker before you let them lease and pay the option fee. Make sure they are capabile of cleaning up and getting a bank mortgage.
Then there's the issue of picking the selling price, the option price. I take the safe and also a practical route: Price to be determined by an appraisal paid for by the Optionor (you the investor). So the price floats up or down, but I do set a minimum price number, but always a price that a bank's appraisor would accept. After all, pick any price you like, the banks appraisor is who really sets selling price. :) :)
"Price to be determined by an appraisal paid for by the Optionor", OMG I love this idea!
Post: Business Account vs. Personal Account
- Investor
- Arlington, VA
- Posts 1,285
- Votes 491
If you want to build business credit, then an LLC and bank account is a must. If you don't intend to establish this type of credit, a business account isn't really necessary.
Post: House Hacking in Albuquerque
- Investor
- Arlington, VA
- Posts 1,285
- Votes 491
@Gina Dobbs, I agree with everythings stated by @Joe H.
Keep in mind that this is a numbers game. You want to make as many low ball offers as you can to find a deal that works for you. Worrying about offending someone based on an offer is nonsense if you take the investor mindset. Always keep in mind that you need to avoid paying retail for properties unless you see a value-add play that others aren't.
Post: House Hacking in Albuquerque
- Investor
- Arlington, VA
- Posts 1,285
- Votes 491
The Albuquerque MFR market is very competitive at the moment. Many investors here are overpaying when looked at from the lense of the BP model. However, if you can practically live for free; then when you move out, you should cash flow.
Bottom-line, if you ran your numbers thru the calculator with accurate projections as a rental (not as a owner-occupant) and show negative cash flow, I would avoid ithe properties in questions and keep grinding. Otherwise, if the numbers meet your criteria, pull the trigger fast-like! Happy hunting!
Post: Personal line of credit for flipping funds
- Investor
- Arlington, VA
- Posts 1,285
- Votes 491
@Yuriy Skripnichenko would you mind sending me some recommendations as well?
Post: St. Louis, MO
- Investor
- Arlington, VA
- Posts 1,285
- Votes 491
@Austin Andrews can you shoot me a PM with more info as well? Thanks!