All Forum Posts by: Bill B.

I usually offer renewals a base 1 year lease plus two options. A 2 year lease at double the increase or MTM at that same amount. 

Example:

The rent is going from $2,000/mo to $2,100/mo for a 1 year lease. I offer $2,200/mo for a 2 year lease or MTM. 

You’re offering the tenant flexibility in the MTM or certainty in the 2 year lease. While you are compensated for the additional risks. 

Subtract the $60k+ in selling commissions plus who knows what in seller’s concessions. And then the $5k/mo interest costs, plus taxes, insurance, utilities. Is there going to be any of that $200k left? Sounds more like you’re just providing jobs for the realtors, lenders and rehab crew. Hoping to break even in the end?

As long as anyone that moves is willing to lose everything they put in to it. (Buying part of a home wi strangers is worth nothing. And I doubt you want to let them rent out their share to a stranger. So they won’t want to continue paying expenses.) same goes for any of them that get married, engaged, or even want to move in with partners. Can they move in to your shared house or do they have to move out and lose everything: 

is their “equal” parking for everyone? (Garaged or not, have to move to get out or not.) Are the bedrooms equal? Will you hire someone to do every choir or assign them? What if they aren’t done?   
  

I think you’re better off having on person do the buying and rent to the others. If you want to share some equity or refund some of their rent when they move out that’s a better option with less pitfalls. This is how I got started “house hacking” back in the early 90’s. I had 3 friends move in and pay the mortgage. I paid the utilities. Of course it was 4 young guys so things slid past us. And as mentioned above. Once I got engaged she put and end to it. :-) I’m sure glad we didn’t own 1/4th of the honey each.  

Ask for 5-10% "hard" EMD (non-refundable). More than 99% will ghost you.

I’ve made very good money on negative cashflow rentals. But this isn’t one of them. 

After tax savings, debt pay down, etc etc. You MIGHT break even. But that means you’re earning 0% on your $80k in equity. So that’s a loss of at least a few thousand per year. If you put that $80k down on the new house and the rate is above 6% that’s $5k per year you’re losing. Plus you can sell today and keep your $50k in profit instead of paying $10-$15k to the state and federal government in taxes, so you’re losing that. Plus you’d be paying that 6% interest eventually that couldn’t be paid down with that tax savings, so that could be another $1k per year in losses. 

It’s not the visible losses that make keeping it a bad deal. It’s the “invisible” ones. And that’s all if you find the perfect tenant day with no vacancies, nothing breaks, and you manage it yourself. I think you knew it needed to be sold. 

This has been asked and answered several times.  I’ll give you the long and the short of it, or at least the short…

1) You sign a real lease. With first 8 months (a couple months longer than they want.) and 10-20% over market rent. Then he rent goes up 20-50% after that. You explain to them it obviously doesn’t matter what the rent is are 8 months, because they’ll be gone in 5-6. 

2) you have those 8 months held in escrow, with the title company, with a lawyer, whatever, and the funds are released to you on the first of each month. (Or you take them prepaid for the minimum number of months they say they[r staying.). 

3) you add $20k to that amount for “new damage”, eviction costs, and unpaid rent owned security deposit. You have them show you and take a picture of all damage and sign a form saying they are responsible for any and all damage not shown in these photos. 

It has worked perfectly for me the few times I’ve done it. But in case you haven’t seen the news articles. It often happens, especially among employed people who are still losing their house to foreclosure, that they can’t get their “stuff” together.  They either procrastinate or discover they are broke and can’t afford to move. Sometimes they never make a payment, sometimes they fight it for 6-12 months while not making payments. 

You want it to be VERY painful not to follow through, not slightly painful. 
ps. I assume this is an investment home a you’d need to move in within 60 days if you told the bank it would be a primary home. Good luck. 

The “assessed value” often has nothing to do with the true value, and sometimes the property tax has nothing to do with the assessed value. About 10-15 years ago counties got sick of people contesting the values. So they lowered the values 20-50% and raised the tax rate about the same. This resulted in temporarily lower taxes, so nobody complained. But it freed them up to get back to the same taxes with no challenges. In other markets like Nevada, property taxes don’t reset at sale and they are capped at 3-8% depending on if they are rentals or homesteads and if they are rentals, how much rent is charged. 

Usually you can search your county website and it should define the tax rate and how the values are calculated. 

Quockbooks little brother quicken is cheaper, easier, and still overkill for 20 properties or less. It could probably handle your other accounting needs as a realtor as well. 

Price?

Rent?

Address?

Of course they’ll assume he’s sleeping with her. Why else would that greedy, patronizing, sexual assaulting man help a woman? We know they’re all evil.  

Hopefully he remembers to never be in a room alone with you, video records all meetings, and doesn’t offend you by mansplaining how to do anything.  Or god forbid use offensive words like mankind.  Men didn’t start the MGTOW movement for no reason.

Ps. In as it wasn’t your intent. Your post came off as men need to be told to help women because they keep refusing. That is what you mean by “normalize” right? You’re saying that women get turned down for help by men because they’re woman. And if you believe that. You live in a sad sad world. I’m going to go out on a limb and say you had to ask less men for help than the average man would have had to. I’m just glad the 10th or 20th guy you asked for help finally came through. Hopefully he would t approve of your post, but who knows. Good luck.