All Forum Posts by: Alan Mackenthun

You're out of luck. It's a public street. It isn't 'your' parking spot.

A 1.4% cash on cash return would not interest me either. I also agree that the 2% vacancy estimate has to be raised. I usually go with 8%. Even this is less than a month a year. We've done better than that for a while, but it takes quick turns and it's not always going to be possible. What kind of rent are you expecting? It seems like a home at that price point should be able to cash flow a little better.

Financial independence. I see it as freedom. I'm planning for the time, in about a year, to drop my day job and focus on real estate full time. No boss, building wealth and long term income, and providing quality housing for others - what's not to like?

I'm a local investor in the twin cities and have my license pretty much just to support my own purchases and occational sales. It's not cheap and it requires some effort to keep your license, but I like it. $520/year for realtor membership/dues paid quarterly. Something like $400/yr for the license. About $10/month for an eKey. I held out on this for a while, but some people (@$%!) put eKeys even on low end bank owned properties these days. You will also have to purchase and complete continuing education each year to keep active. I work with Bridge Realty headquartered in Bloomington, MN. They charge nothing to carry my license. They do get $495/closing. That's the best deal I could find in town.

One other thing to note, is that if you're going to be rehabbing houses in MN, you may also be required to get your builder's or remodler's license.

It is helpful, but by no means necessary. If real estate is your passion, I'd think jobs in certain inducstries would be more helpful than a college degree. I've got a master's of science. Writing for publication and researching, writing and defending a thesis were good experiences. Learning how to write and present things professionally are skills that have served me well. I majored in Civil Engineering. I still remember things I learned in the soils, structures, concrete, pavement engineering and water resources courses. After all the schooling I saw that IT paid much better than civil engineering and became a software consultant. The exercise of learning how to learn is helpful, but college costs are way out of line with the value delivered today. I'd skip it if what I really wanted to do didn't require it today.

Yes, at least where I'm from if trees are overhanging your yard, you can trim them back. Best to be nice when doing so and be sure the done well so as not to permanently hurt the tree(s).

That would really stink. You'd have to move to evict the old tenant and work with the new tenants. What a mess. I can see the merit of Jon's suggestion to not sign a lease until move in, but both tenant's and I would like to sign a lease as early as possible. I believe our lease has a clause to address this scenario. Hope I never have to use it.

At 1st blush I'd love to find exactly this opportunity. The 50% rule gives you this much. Given that it's worth looking at a lot more info is required to really evaluate it.

I bought a copy of a lease from the local mulit-housing association. I modified it to fit my needs and continue to modify it over time as the need arises or for specific properties.

My lease states that they need to make the place available for showings when needed. As long as the place is in reasonably decent shape without major repairs required, I list it at least 30 days early or as early as possible. It requires a little coordination with the tenants as we still need to give them reasonable notice of showings. We've always received good cooperation from tenants. When showing we let the prospective tennants know of any repairs or improvements planned upon turnover. This has definitely limited the time the unit sits vacant. The biggest problem is getting the property turned over (cleaned, painted, etc) when one tenant leaves on the 30th and the next is moving in on the 1st. Not the worst problem to have. Explaining the fact that tennants are still present helps with scheduling showings in groups. Group showings help to give prospective tennants a sense of scarcity and demand. It seems to work better than showing a vacant unit.