All Forum Posts by: Zane Zeman

Hello! Looking for some advice...

I have a ranch style home, basement converted into full separate unit. Will be renting out both main floor and basement separately as long term rentals (currently living on main floor). My swamp cooler has being giving me some issues, probably just need to replace motor and this would be cheapest option but thinking about long term HVAC solutions that would be best for my tenants. Here are my current thoughts:

1) Split/mini unit AC seems like a middle priced option but more reliable/comfortable than swamp cooler (at least for main floor, don’t think it would make a difference for basement)

2) Central AC for probably a few grand more, maybe most comfortable and controlled for main floor and basement? (Have a furnace in basement currently for heat, does this make the central AC installation easier/cheaper?)

3) Just repair parts on swamp cooler, just a rental, doesn’t matter too much…

Appreciate any thoughts/feedback!!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $470,000
Cash invested: $25,000

House-hack for now, purchase as primary, 1 tenant in private basement covering majority of mortgage.

What made you interested in investing in this type of deal?

Subsidized rent, decrease cost of living.

Opportunity for strong cashflow after moving out by renting basement and main floor separately.

How did you find this deal and how did you negotiate it?

Zillow

How did you finance this deal?

Conventional Loan, HELOC for down payment and renovations.

How did you add value to the deal?

Sales comps in surrounding areas and rental comps for 2bd 1bath's in area. Found it hard to analyze value of house hack, will be able to better value when entire property is rented. Expecting ~$1.5K cash flow.

What was the outcome?

Achieved goal of finishing renovations and getting lease signed by first mortgage payment. So far so good.

Lessons learned? Challenges?

I saved thousands of dollars by getting multiple quotes and managing the project myself. This also required a lot of time and effort on my end. Once I get better at analyzing deals I'll probably do less project management to put my time/energy elsewhere.

Both of those are good options. Although, not as competitive from a sellers perspective. If you are competing against other offers, you probably want to go with conventional. There are some lenders that make your conventional loan appear as a cash offer, I'd recommend looking into this option on highly competitive houses. Get pre-approved now even if you're just browsing, you never know when something will pop up that will be appealing to you. As a first time home buyer you should be able to put 3% down. 

@Kerry Baird 

4.75% PenFed, 80% LTV on my investment property

4.25% SCCU, must have been 70-75% LTV

Ended up going with PenFed over Space Coast. For an investment property out of state, I had a 1.5% margin on top of the 3.25% standard rates. So 4.75% with the ability to lock in rates up to 3 times. PenFed was able to get me double what Space Coast was able to as far as total line of credit, this is the main reason I went with them. Also, Space Coast did not have the ability to lock in rates. 

Overall, customer service experience was pretty terrible. I do think I just got an unlucky loan processor though. I had to be on top of them every single step of the way and hound them to inform me what other documents they needed from me to continue the process. Many of the times, not getting a response at all. Ended up getting reassigned to someone much better who was able to help me close the HELOC after over a month past application.

Thanks! Just got off the phone with them. Looks like I'll be good to secure a HELOC with them. Also, submitted an application to Space Coast Credit Union. I saw them in another thread but I'm under the impression they might not service out of state customers. We will see.

Doesn’t look like there’s too much shopping around to be done for someone like myself.

Hello, 

Does anyone have a credit union/lender/banker they can refer me to that will entertain a HELOC on a FL Investment Property for someone who is not currently living in Florida?

For context - I own a property in Atlantic Beach, FL. It is currently being rented out, the existing mortgage on the property is as a primary resident. I moved out of Florida in April 2021 and currently live in Denver, CO.

From what I understand, it is definitely possible but interest rates will be slightly worse and the LTV will be capped at 75-80% versus 90%.

Thanks for any insight! 

Best,

Zane