All Forum Posts by: Barrett Boone

@Brie Schmidt I have never actually received a full description of expenses.  I get a cash flow statement with an expense report every month, but the description of the expenses are usually cut of so only a couple words show up. I've asked for them to be printed landscape or something where I can see the full descripiton, but the PM claims the software won't allow it.

That PM sounds great! I'm feeling pretty in the dark with mine right now... I don't know anything is wrong until I get the expense report

Thank you for your replies. For clarification I think this would be classified as a SFH (one unit, 5 tenants) in a college town. I went back and looked at the lease and there isn't anything about lawn care so that would fall under my responsibility.

However for the garbage disposal it does say that the lessee is responisble for clogs/ stoppages of the disposal.  So that's something that PM should be charging back to the lessee correct?

@Brie Schmidt  It has been like pulling teeth to get full reports (in fact I still haven't received a full report yet). I'm going to keep trying to get them though.

I really like the idea of a $200 authorization limit, and having a weekly discussion with the PM.  I think alot of these issues could be resolved with a weekly phone call instead waiting until a month after the work has already been done.

I have a property that is being managed by a property management company.  I have been getting a large amount of expenses on the property lately. Some seem legit but other do not.  I wanted to get the opinion from other landlords on what should be the responsibility of the tenant to pay for, and what the home owner should pay for.

Some of the expenses from the management company :

- Trash cleanup (beer cans in front yard)

- Mowing (who do you typically make responsible for yard maint.? you or the tenant?)

- Leaves

- Glass in garbage disposall

- repainting interior walls (not sure of the reason)

Also, the expense reports I get from the company are cut off the sheet because of the way the report is formatted/ printed, so I don't really know exactly is being charged and why, and they are telling me that they can't print the sheet horizontally to show more info... this sounds really sketchy to me.

Thanks in advance

~rookie landlord

I apologize in advance for the long post. I am new to real estate investing. I currently own a property that is out of state, that I bought while in school that is being managed by a property management company. I'm trying to determine the best way to leverage this property in the most effective way

Purchase price: 164,000

Zillow estimate: 172,000 (just a quick prelim number)

15 year note ( ~7 years 88,000 remaining)

Income: 2300

Expenses: 500 (~22% of income)

Mortgage pmt: 1740

I ran the numbers so far this year, and if you assume the 50% rule the way that I understand it the property is NOT cash flowing.  However, at the current average expense rate of about 22% (including prop management fee) it's averaging a cash flow of about $60.

I was considering doing a cash out refinance with a 30 year note, and using the cash on a down payment on a deal in the DFW area where I live. Then not only would the property cash flow much better but I could also continue investing closer to home.

If I understand correctly, to do a refinance you would refinance 80% of the market value which would be about 137,000 in this case.  After doing a quick refinance calculator I found online the new payments would be about $800. 

The lower payment would allow the property to cash flow about $350 ( with a 50% expense assumption) if I calculated it right.

New CashFlow= 2300 - (2300*.5) - 800

I have 2 questions: 

1. Are there any options that Im not thinking about, or any pieces of these options that I haven't accounted for.

2. Would it be better to just hold out the remaining 7 years on the loan so that the note will be paid off much sooner or go ahead and re-finance.

any advice or being pointed in the right direction would be appreciated.

I am new to the site, but have been listening to the podcasts for a while and have been getting great info. I am interested in the buy and hold strategy for now but I have been learning about options that I didn't know existed.

I currently own one property out of state and being here has already made me re-evaluate how I've been doing things in the past

I Look forward to learning more

This is my first post, I am currently living in Fort Worth, Texas where I plan to start investing in real estate (looking at buy hold). I haven't bought my first property yet, and I still have some financial loose ends to clean up before I get started. I currently own a rental out of state that is being managed my a local property management company. I haven't been the treating this like the business that it is, and feel that I have left some money on the table. I am thinking about putting that property into an LLC.

My question is, do I need to find a tax professional/ CPA in the area that my out of state property is located, or can I find one here that will be able to help me out and I could continue to work with them once I get started in this area?

Once the LLC is set up for the out of state property, does that need to be the only property in the LLC or can more properties be added? Are there any restrictions/ obstacles to haveing properties in the same LLC in 2 different states?

Sorry for the long post