If you do not have good credit you can always create a partnership, say an LLC with a spouse, family member and friend then use their personal credit score to get approved for the business lines of credit. The business lines will have no effect on their personal credit, since they will be the responsibility of the LLC. There is a system to the process. They are great tools for completeing your rehabs, etc. I recommend the system created and used by Tom Kish. He provides step by step instructions for his proven system. We received two lines in the first month that we applied for them. Good Luck!
Totally agree with that strategy, you need to get somebody in there asap!, At this stage of the game you may want to consider handing it off to another investor and cutting your losses by locking in a small gain if you can.
If you do decide to get a tenant in there make sure that you clearly note that there are repairs that are in the planned stage so he cant decline paying his rent because of the small details (leaks and such)
I can sympathize with you because I found myself in a situation very much like yours last year and it led to real headaches and depression along with severe financial setbacks.
Youve already lost your car on this deal, dont let this duplex become your money pit. Also make sure the repair guys are on the same page with you and perhaps can work on credit or even if they agree to get paid a higher amount if thet allow you some time to get some rental income set up.
Please keep us posted, Good Luck, God Bless,and Gett It Dunnn!!
[addsig]
As a new investor myself, I thank you for having the courage to share your experience with all of us. Its also good to know that all is not lost even when things go wrong, you can still recover. I like the idea of getting another investor to share your burden. Even if you break even, the value of the experience is priceless. I am sure if you did it all over you would do things differetly. What I am learning from this is to keep your priorities straight. The problem facing newbies is being cash-strapped. My sitiation is similar. I think I will try to keep my initial investment under $100K for starters. And Section-8 tenants are not the best. I would carefully screen ALL candidates beforehand. Anyone looking for a place to live needs to explain what happened to them. Remember: possession id 9/10ths of the law. If they get in its tough to get them out. I recommend you read Dave Lindahls 23 tips on multiunit investing. It woke me up about tenants. Best Wishes!
To get a Section 8 tenant, your property must pass inspection by the Section 8 housing authority. With the repairs you plan to defer, your property may not pass the inspection.
I would not hold out for a Section 8 tenant if that means you are keeping the property vacant when an otherwise qualified tenant could be paying rent.
The new year is here! Having said that make a resolution to not get bogged down in these out of money scenarious, truly are what nightmares are made of.
Advertise that upstairs rental aggresively, Im talking about signs in the window, one in the yard, and one in the local weekly flyer or pennysaver paper,
At the same time network with anybody you know to see if you can gt a handyman or such to do the work you cant do on the bottom unit.
Chris has a good point, time is always working against you in the sense that a great renter may not hear about your place or your place is not ready,
I have had moderate success in rougher units when I am frank with the renter and tell them that I am allowing them a break on price because thae rental is not completely fnished and thats why its less than market rate,
Good Luck, God Bless,
keep us posted
You can do this, but your rates are going to be extremely high, and might make the difference between positive cashflow and negative cashflow.
If you do not have good credit you can always create a partnership, say an LLC with a spouse, family member and friend then use their personal credit score to get approved for the business lines of credit. The business lines will have no effect on their personal credit, since they will be the responsibility of the LLC. There is a system to the process. They are great tools for completeing your rehabs, etc. I recommend the system created and used by Tom Kish. He provides step by step instructions for his proven system. We received two lines in the first month that we applied for them. Good Luck!
Totally agree with that strategy, you need to get somebody in there asap!, At this stage of the game you may want to consider handing it off to another investor and cutting your losses by locking in a small gain if you can.
If you do decide to get a tenant in there make sure that you clearly note that there are repairs that are in the planned stage so he cant decline paying his rent because of the small details (leaks and such)
I can sympathize with you because I found myself in a situation very much like yours last year and it led to real headaches and depression along with severe financial setbacks.
Youve already lost your car on this deal, dont let this duplex become your money pit. Also make sure the repair guys are on the same page with you and perhaps can work on credit or even if they agree to get paid a higher amount if thet allow you some time to get some rental income set up.
Please keep us posted, Good Luck, God Bless,and Gett It Dunnn!!
[addsig]
As a new investor myself, I thank you for having the courage to share your experience with all of us. Its also good to know that all is not lost even when things go wrong, you can still recover. I like the idea of getting another investor to share your burden. Even if you break even, the value of the experience is priceless. I am sure if you did it all over you would do things differetly. What I am learning from this is to keep your priorities straight. The problem facing newbies is being cash-strapped. My sitiation is similar. I think I will try to keep my initial investment under $100K for starters. And Section-8 tenants are not the best. I would carefully screen ALL candidates beforehand. Anyone looking for a place to live needs to explain what happened to them. Remember: possession id 9/10ths of the law. If they get in its tough to get them out. I recommend you read Dave Lindahls 23 tips on multiunit investing. It woke me up about tenants. Best Wishes!
CLF,
To get a Section 8 tenant, your property must pass inspection by the Section 8 housing authority. With the repairs you plan to defer, your property may not pass the inspection.
I would not hold out for a Section 8 tenant if that means you are keeping the property vacant when an otherwise qualified tenant could be paying rent.
Also, I was thinking to refinance and cash out to make the repairs. What do you think about that?
I just want a loan that gets me out of the "owner occupant" requirement. That way the house can be strictly investment.
Do you know how I can switch that status?
THANKS!!!
Find a handyman and have him move in and repair the place in exchange for 50% of the profits. Best advice is next time PLAN AHEAD. Good luck.
[addsig]
The new year is here! Having said that make a resolution to not get bogged down in these out of money scenarious, truly are what nightmares are made of.
Advertise that upstairs rental aggresively, Im talking about signs in the window, one in the yard, and one in the local weekly flyer or pennysaver paper,
At the same time network with anybody you know to see if you can gt a handyman or such to do the work you cant do on the bottom unit.
Chris has a good point, time is always working against you in the sense that a great renter may not hear about your place or your place is not ready,
I have had moderate success in rougher units when I am frank with the renter and tell them that I am allowing them a break on price because thae rental is not completely fnished and thats why its less than market rate,
Good Luck, God Bless,
keep us posted
Sleeve