All Forum Posts by: Mike D.

As an owner of a mortgage broker shop I hear it all... Im just going to wait until rates go down or prices are going to drop soon.. People dont get it, we have inventory shortage. There may be some events that may occur that may loosen this up over the next 6-12 months, but a solution to the inventory shortage is no where on the horizon.

This means that there will be no price drop, at least in my area interest PA DE NJ MD. So lets talk about the cost in not buying. Houses here are appreciating 6-8%..so that house you see for 400k will be 430k next year and possible 465k the year after.

Also, what do you think is going to happend to house prices when rates go down...you guessed it values will jump.

The reality is the best time to buy real estate was yesterday, and the next best is today. People who think that some magic bullet is coming to solve the inventory issue created by 20 years of limited building are mistaken.

You are absolutely right! Now is the perfect time to buy. Rates will only be going down. Wages, prices and rents will only be going up. Why is there so much doom and gloom out there?!

0 Votes

I wouldn't change much from what I did.

Look for desirable homes/duplexes/condos in desirable neighborhoods that need work and that have been on the market for a while. Get it at a good price. Repeat.

1 Vote

Albuquerque, New Mexico

I don't think you'll be able to deduct your HELOC interest from your income. You could cash out refinance the entire mortgage and then deduct the interest on your personal return.

I would keep a large chunk of equity accessible in your home or just cash in case you run into an unexpected expense after buying the property.

After I bought my first property I had to tap into my HELOC to pay for new siding and windows that I had not planned on.

0 Votes

@Manas M.

Shop around, pool your properties and higher deductibles. Be careful about too high deductible because if you have a wind storm damage 5 properties that could be a lot of cash to come up with.

0 Votes

Houston, Texas

@Chad Potter

I would ask the bank to add your LLC to the mortgage and then pay the mortgage out of the LLC checking account.

0 Votes

Maybe offer the tenant a lump sum ($5k?) to sign a new lease? Kind of a cash for keys but let them stay on a shorter lease. Also chances are the tenant is locked into the lease too so what if they want to move before 2025? They might welcome the opportunity to get out of the long lease term.

0 Votes

I recommend Chase Business. You get at least 1% cash back on all purchases. Many home improvement centers give 2% cash back on this card. I've been using it for years.

https://www.chase.com/business

0 Votes

Covid will be gone by December but I don't see them letting this expire in the dead of winter. Better find some 800 credit score tenants!

7 Votes

I've got a vacant apartment. I wonder if I should wait until this eviction ban is over with to rent it?

18 Votes

@Kirk Hawkins it totally depends how you want to spend your time. If you want to actively manage and work on your properties I'd look for some condos/houses that need work, get them at a good price, fix them up and rent them out. If you don't want to get your hands dirty go turn key or consider other ways to invest.

0 Votes

All Forum Posts by: Mike D.

Mike D. has started 34 posts and replied 174 times.

Post: The cost of not buying.. the cost no one wants to admit

Post: First time investment strategy advice

Post: HELOC on primary resident to purchase rental properties

Post: How to keep insurance low?

Post: How to pay rent and avoid piercing the LLC veil

Post: Please Help! Wisconsin Multi-Year Lease

Post: Business credit cards

Post: Trump/CDC Halts evictions nationwide to the end of the year

Post: Trump/CDC Halts evictions nationwide to the end of the year

Post: $200,000 in the bank...now what?