All Forum Posts by: Douglass Belt

As I listen to the podcasts, and read many forums, I am wondering does anyone have an example of lock down, solid lease for a single family or multi? (2-4 units?) Of course, a mutli uni lease will be a bit different than a SFH. My lease (SFH) is 4 pages that includes a crime free addendum. After listening to many of the podcasts, and hear from others, it seems that I may need to "enhance" mine. Do you feel your lease is solid and fair? Where did you get yours? What did you do to ensure it is fair and pretty iron-clad? Any suggestions are appreciated!!

Hi @Gregory Tran 

I am not sure if they put a memo on the check but my 1 set of tenants drops the check off at the bank and it does not seem to be an issue. I would suggest contacting the local branch they would deposit at, and talk to the Branch Manager to explain your situation. See what they can do. I would think there would not be any issues since they are depositing money into your account...? Good luck and let me know what happens if you go that route. Thanks!

Hi @Igor S

It may depend on how many properties you have. I have my tenants deposit right into my bank account, and I dont need to give them the account number. I talked to the Branch Manager at the location they deposit to identify myself and let hem know that my tenant will be making monthly deposits and that is approved by me. Then the Branch Manager made the proper notes in the system so there would be no confusion when she comes in to deposit and make it easy for my tenant. So far, it has been the a huge time/cost saver for them and they are much happier now because of it. It is a large national bank too with a local branch. To save myself the $3-8/month deposit fees of other rent collection sites, I will continue to do this until it hits a snag. food for thought....you may want to investigate with your bank. Hope that helps!

Hi Tanya F- Good feedback and thanks for your thoughts. Is there are particular area in Madison you have invested with Duplexes ? What areas has your cousin seen success with for the SFH homes he fixes? Thanks again for the input!

Hi Lucas Wagner-

Thanks for the feedback and I appreciate the input on zip codes. The more I look into COC return, etc I am thinking SFH might be a good strategy currently in the Madison Wisconsin market? More availability of homes, good cashflow and priced reasonable. Thoughts?

 I would be interested in discussing further or perhaps meeting up for coffee sometime.

The Madison WI market is pretty tough right now in regards to investing in SFH or Multi and a reasonable price. Perhaps I am missing something (I know I just set myself up for a sarcastic response...!) but there just does not seem to be any good opportunities for Multi or SFH rentals in the area-at least not numbers that work for me. As a HUGE college town, highly educated population, above nat. income level, and low vacancy rates, I am sure that all plays into it. Every day, there are more and more apartment buildings going up (20+ units) Any ideas on how to get into this market? I am looking to buy and hold. In a situation like this, is there another strategy you would suggest given the current market in my area? I am not looking for a "job" like Flipping, or wholesaling....thanks everyone, it sure is nice to have BP as a resource!!

It is my understanding that in real estate investing, there are always opportunities to invest regardless of the market. That said, I am trying to figure out what opportunity may be available in the Madison WI area. the rental market is very strong here, 3% vacancy rate. the rents are high, property taxes are high, and very few "deals" that I can find regarding SFH or Multi Family property. The sales price is high and when adding expenses, etc. cannot find much at the 1% rule let alone anything close to that without being in a "D" neighborhood. Does anyone have experience investing in Madison? Any suggestions or ideas? My goals are to invest in 4-5 SFH then pivot to multi's (2-4plex). Thanks!!!

Hi Matt-

    My "expertise" resides only in single family homes, since that is what I have. I can tell you there are a lot of good posts about this topic that will help bring to light some questions you may not have thought about. I certainly found that out when searching about the same topic!

    Pertaining to your question, it all depends on what you want to get out of your investing. As for single family, here is some feedback based on my experience from my property.

*Longer tenant occupancy (mine is on their 3rd year)

*Tenant is responsible for lawn/snow removal

*Tenant treats a SFH as a home, and generally takes better care of it

*financing can be easier

*Broader pool of buyers when planning your exit strategy (First time home buyers, investors, corp housing, etc)

*overall less maintenance (Depends on condition but less units to repair during turnover)

*less taxes (Depending on area)

*tenant pays all utilities (Water, gas, electric)

These are just some things to think about, and based on what my SFH does. I hope this helps shed some more light for you and helps you figure out more clearly, what your goals are, and what sounds better suited to your style. I know by reading others posts, it helped me shift priority from multi- BACK to SFH. That said, both SFH and Multi have pros and cons. Good luck!

Hi Tanya F,

    As with all insurance, it certainly depends on a number of factors. I use $1000/year as a ballpark. Typically the policy will be more than a standard Homeonwers policy. Credit scoring has become more of a factor in recent years that affect rates as well. I have seen policies  from $600-$2100/year or more.

The main difference is Landlord policies will (depending on the insurance company) cover the "shell" or structure of the building and not personal property. Also, many policies do not cover theft (One reason your tenants should get their own renters policy) of personal items. Some policies cover rent loss if there was damage to the unit and unihabitable for the tenant, as well as landlord legal fees, etc. they may be liable for. As mentioned, each insurance company has some differences in their policies as to what they do and do not cover, so be sure to consult a Agent and be sure to have them SHOW you the coverages and ask lots of questions. 

A $1M umbrella IMHO is a necessity and just a forgone conclusion that a landlord should have. Glad to hear you have one Tanya, as I can't tell you how many Landlords think they don't need it or is "too expensive." I am sure you sleep better at night knowing you have one! I know I do!! Hope this helps.

Hi Tyler,

  Thanks for providing numbers. I think your numbers look about right for water/prop taxes. Have you thought about having the tenant pay for utilities?  Also have you factored in lawn/snow removal?

The one number that jumps out to me is your insurance. Be sure to ask if that is a "Landlord" policy or "Homeowners" policy. I am in the insurance industry and that rate is so cheap it makes me wonder if the agent is not selling a basic home policy which is potetially HUGE mistake. A Landlord/Dwelling policy would start around $1000/year or so. You want to insure the dwelling and liability but no need to cover the tenants personal property which part of what makes it different from a homeowners policy. Happy to help if you have additional question, or provide you more details about that, just let me know.