I'm a realtor, and I'm representing myself on my new under contract 4-Plex in Mesa Arizona using Fannie Mae owner-occupied 5% down and I elected to not buy a home warranty. and I currently have 45 other multi-family units in the Phoenix metro. Never bought a home warranty. I just set reserves for those big ticket items known as capital expenditures. Just last night 04/22/2024 I had a AC blowing warm air instead of cold air and I called a HVAC company last night and they came out this morning and replaced the Dual run capacitor for $230. I just don't like fighting with home warranty companies or property insurance companies about trying to get them to fix stuff. Those businesses they just want to collect fees and premiums but then they try everything do not pay out

For the guy that inherited the 1.3M duplex - PLEASE consider what your father/mother/whoever would want you to do with the property. If they gave it to you with no note, they probably don’t want you to have debt on it! Wait a year or so, learn the skill set of RE investing and then use the stockpile of cash from the duplex to do some deals that help you build the skills to go farther. There’s a human element to investing too, and you should be sure to honor the intentions of your benefactor with how you use the gifts they left you. ❤

Leverage forever! ; ). Responsibly of course. HELOCs are great, but cash out refinance is the only way to access 100% of your equity to reinvest. There are many other (and better) options here that was not covered to access your equity in rental property. Let's get some creative financing lenders on here.

Home warranties are not that great. I had them on 2 of my rentals. The vendors are lower grade technicians and respond slowly. AC issue in took over a week to respond. Next time it happened the wait was so long. I just paid outside of the warranty to fix the issue. Then, I cancelled the warranty. They're typically are required to find the cheapest solution and the bare minimum to get the unit working even though they know itll only temporarily fix the issue. Both times the AC broke on both properties, vendor had to make repeated visits because the problem wasn't fixed correctly. And these were for completely separate vendors in different states.

@johnnyb33good21

3 ай бұрын

Yeah exactly the whole business around home warranties and property insurance companies is they collect fees and premiums and then they try not to pay out and decline your claim

Thank you for putting Seeing Greene in the title! I find the most useful information from these episodes. It definitely helps to spot them having that in the title

Love your shows. Its hard to know what to do in the current real estate environment, and I always appreciate your wisdom and guidance.

We didn’t have luck with home warranties, call center was over seas, they took forever to go to the home you have to be in the phone forever. Always giving us excuses and not taking care of the problem. We cancelled them for all three properties and use our guys now.

Great content! I really enjoyed the comedic portions of the show. Good balance of education and light comedy. I about died when David quoted 8 mile. 🤣

if i was the dude in SB, I'd get a Heloc and pull $200k. Rent out the sb property. The money from rent will pay the Heloc. The $200k could go towards a multi-family, which I could live in and rent out the other units.

Evan should take that money and put it in an S & P fund.

Student debt is cheap debt. I’d leave it alone

@ldsholes80

3 ай бұрын

Exactly! I’m in no rush to knock down the principle on a 1% loan. I can invest that money and get a much higher return elsewhere

@sofiamurgado606

3 ай бұрын

Ttly agree! This is coming from someone who used to be $150k student debt. Buying rentals gave me a much better return while working W2 and then paid off the student loans through my public service job. Best of luck and Appreciate this community💛

The hime warranty company through my Utility company in New Jersey is great. I use them for my primary as well as my rentals. For my rentals they seem to respond faster than my management company without the extra fees. I am pro home warranty especially since my management company is not great.

Quick question. Do you pay capital gains on your net profit or sales price of an investment property. Second if the answer is net, why don’t you cash out refinance prior to sale? Thanks

@tylerbrobst2716

3 ай бұрын

Never thought about that! Greta question!

Home Warranties are not worth it variety of reasons.

Santa Barbara duplex guy should cash out refi and build 2 ADUs if his lot is big enough and he can increase his cash flow and raise the value of his property.

Hi Guys! Does he live in this duplex/house? I thought HELOCS are only for owner occupied?

Don"t use American Home Shield!!!!

Love Seen Greene

Great show today fellas. You guys hit two things my Wife, and I are dealing with. H.E.L.O.C, and trying to sale occupied Duplexes/Single Family.

What do you feel about manufactured home builds?

Evan. Dude. You have told the world you have $1.2m with your name and city 🤪

Home warranty don't want to pay

I’ve only heard about home warranties recently. Are these a new thing??

@tammyrussell-rice5508

3 ай бұрын

No - Typically, these policies are purchased at the point of sale.

I have 3 properties, home warranties have saved me over $12k in appliances. Granted my tenants are long term so I could see how it would be an issue with short term rental.

There are 0% med professional loans. That fella with $320k in loans should look into that for sure

@CamoronMireCat

3 ай бұрын

Oop they talk about it at the end, nevermind