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All Forum Posts by: Kathia L.

Kathia L. has started 9 posts and replied 87 times.

Post: New landlord looking for a phone in solution for rent payments.

Kathia L.Posted
  • Rental Property Investor
  • South FL
  • Posts 92
  • Votes 16

I agree with training your tenants on a M2M lease and enforcing that if they don't pay I have several suggestions: 

Pay near me -the landlord sets up an account and links it to your bank account and deposits the money and the tenants pay at various locations using cash for your cash only tenants. The plus is there are receipts the tenant is given and you have an electronic payment trail. 

You could also add ach debit that would directly pull the rent on on the 1st and deposits into your account without having to give out your account number.   

Even though the chance of someone ripping you off is slim it has happened, don't take that chance.

If you're tech savvy and using a management app like appfolio those things are integrated into the software program. 

No more chasing down tenants for the rent just sit back and watch the cash roll  in every month. 

Post: Inherited Tenant Contacting Me Too Much

Kathia L.Posted
  • Rental Property Investor
  • South FL
  • Posts 92
  • Votes 16

have you read this post ? 

https://www.biggerpockets.com/forums/52/topics/23212-the-top-5-landlord-mistakes

Post: Inherited Tenant Contacting Me Too Much

Kathia L.Posted
  • Rental Property Investor
  • South FL
  • Posts 92
  • Votes 16

IMO 

Your safety first over profit you're living there so don't wait and give him his formal walking papers. If he's regularly innebreated and already not respecting the boundaries you have set forth, kick him out NOW!  As women sometimes were not taken seriously make it clear by certified letter and start the official clock the day he signs for the certified letter.

Keep the receipt print it out and keep a copy of the letter for yourself that's your proof. 

You have 60 days to get him out and don't give him too many days to move out and state that clearly in the letter. It will be easier to get him out now rather than later and get a new tenant in within the month   If it's an in demand area 

If you need to can ask the real estate attorney who did your closing for a quick letter. hope it works out ok 

Post: Kitchen Layout Feedback

Kathia L.Posted
  • Rental Property Investor
  • South FL
  • Posts 92
  • Votes 16

@Calvin Kwan

Maybe you should rethink the farm sink if you're not attached to it because it's really taking up a lot of space. Also if you need more cabinet and counter space see how it looks with an apartment size dish washer and taller slimmer fridge. I would suggest getting a stainless steel movable 2 tiered with butcher block or keep it plain stainless. That way you could have more prep and storage without taking up much rom in that small kitchen. 

Like this one but less pricey. 

http://m.homedepot.com/p/Home-Styles-Orleans-Butch...

Or this style 

https://www.wayfair.com/Crosley-Kitchen-Island-wit...

Plenty of small kitchen appliances ideas. 

http://www.remodelista.com/posts/10-easy-pieces-fa...

Post: BRRRR strategy using cash out of pocket

Kathia L.Posted
  • Rental Property Investor
  • South FL
  • Posts 92
  • Votes 16
Originally posted by @Ryan Ohri:

Ryan, great first name :) Ok, here it goes, this replay is free so you get what you pay for. As I myself am also new, but I believe I do have a good understanding of the BRRRR strategy. In response to your first question of calculating the ARV, this is probably the most risky or "tricky" part of the strategy. You will need to be able to run the comps on this property for similar properties in the condition you plan to rehab this property up to. You can call it ARV but you can also think of it has your after rehab appraised price, because that is was a bank is going to call it when you go into the bank to ask for a new loan on the property(or the "Refinance" in BRRRR). You will also want to check with several banks prior to starting the buying and rehab process and get a lender locked down that they will do this, some require seasoning periods which would require you to hold it after rehab for a short time (6 mos-2 years) before they'd be willing to complete the refinance for you. Also you'll want to find out what their loan to value or LTV requirement is. For example: if the ARV is close to that 120,000 and the bank will give you 80% LTV then they are saying they will give you a loan on the property for 96,000 (plus there will most likely be some closing costs when the refinance occurs). So if you're "All in" for 75,000 (purchase price + rehab), then you stand to get back 21,000 in cash at the time of the refinance with the bank. Don't forget to account for your carrying costs on the property during the rehab. These would include, insurance on the property, taxes, and utilities.

You will need to have a good idea on rehab costs going in, so figure out what you can do and what you can't.  For what you can't make sure and get estimates from several contractors and a time table of when the work can get completed, sooner the better.  You will also need to figure out your terms with your money partner.  Are you paying him back the money he's putting up initially, or is he sharing in the rental property with an equity position?  Some things to consider is all I'm saying, have it figured out well in advance of signing anything.

I currently have a property under contract where I am using a very similar strategy to BRRRR, but somewhat of a hybrid. I am purchasing a property for 75,000 using a construction loan with a local bank, doing 15,000 in rehab and it "should" then (based on the comps I've run) appraise for approx. 105-115k. The higher the appraisal price the better, I will then refinance into a 30 yr /4.25% loan. If the appraisal is lower than I expect and/or the rehab a little higher, I may have to come out of pocket several thousand dollars at closing on the rehab, but I'm ok with that as I have a HELOC I use to make small draws that I can pay back quickly. This allows for a very attractive Cash on Cash return. I hope this helps in some way, good luck!

Ryan

 Nice strategy. 

Question did you get the HELOC on your primary home or were you able to get it on a previous rental property? Thanks

Post: tenant wants to paint

Kathia L.Posted
  • Rental Property Investor
  • South FL
  • Posts 92
  • Votes 16
Originally posted by @Sylvia B.:

@Kevin L. No offense, but I think you need to man up. You need to decide who is in charge of this relationship, you or your tenant. If the tenant is in charge, then just do whatever he wants - let him paint, give him another 12 mo. lease, shoot, why not throw in a rent discount! 

If you are in charge, then decide what you will and will not allow on your property, who you will and won't rent to, how much rent you will charge, and whether you will offer a lease or month-to-month tenancy. Above all, don't let anyone get away with threatening you! If the tenant "insists" on something you are not willing to give just say, "I'm sorry, that is not possible right now." (Or something similar.) Firm and polite.

 ITA 100% 

Post: How Would You Improve the Outside of this House?

Kathia L.Posted
  • Rental Property Investor
  • South FL
  • Posts 92
  • Votes 16

@Micheal 

I meant shrubbery in back also needs to be cut lower or replaced. 

Another suggestion you could try black shutters, or window frames with a either a black door or red door (red is eye-catching but some people are sensitive to strong colors and a red door might be a turn off) then you would have a classic black and white or classic black, white and red look.  Shutters on the top windows and frames on the bottom windows all painted in same color whatever you end up choosing could work especially with that lower window right by the door. 

Post: How Would You Improve the Outside of this House?

Kathia L.Posted
  • Rental Property Investor
  • South FL
  • Posts 92
  • Votes 16
Originally posted by @Michael Noto:

@Bill Labrecqueand I are closing on a SFR flip towards the end of June and are in the process now of fine tuning our rehab budget for the project.

The outside of the house itself and the landscaping is actually very well cared for.  The roof is 3 years old and the siding is in very good shape.  It just needs some improving to make it look at little more modern.  

So, what would you do to improve the outside of this house?

I have yet to flip a house either but heres' my opinion. 

What's on the side of the house next to the front door? is that a half porch? if it is you should extend it around to the other side and again match color with either trim or house color. if it's useless maybe consider taking it down if it won't damage anything. 

ITA the hedges/bushes have got to go, they are to tall for the property and block the views to the house and from the windows they should either be cut lower or replaced with dwarf shrubbery that perennial low maintenance and wither some white stones or brown mulch around them.  The Eagle? above the front door either take it down if it's not a true vintage piece or paint it to match trim. Front stairs and walk way need some TLC the steps are cracking at least power wash and fill cracks in if you don't want to replace with pavers or bricks. 

Also the blue plastic and the cardboard structure underneath it is an eyesore, I don't know what it's for but if it's a camouflage like for the trash and recycling bins I would build a partial fence structure with a opening that you can close to hide those, and to match the fence around the the property.  BTW one of that cheap looking chicken fence like the neighbor has get something that looks nice even if it's not expensive. I would use the classic white wooden fence.  

The house looks nice but lacks some vintage character, maybe some pop-out frames in grayish blue or shutters framing the windows. You could then match the door color with the window frame color or shutters. 

If you really want to up the WOW factor you could do some exterior paint in a happy baby blue (no grey tones) and then keep the window trims crisp white and if you can change the door to a nice "vintage look" door painted crisp white to match the trim. 

The back door stairs need some power wash cleaning  and then if they look good you can leave them like that or you can paint them to match either the house color or the trim.  The awning needs to go and the stair-rail needs some paint just to freshen it up. The shuddery in back is to tall as well. 

Let us know how it turns out and post some pictures.

Good luck. 

Post: Sold! House flip $83,000 in Profit

Kathia L.Posted
  • Rental Property Investor
  • South FL
  • Posts 92
  • Votes 16

Congratz 

the house came out very cute I'm not surprised it sold fast. 

@Tarl Yarber

Shawn Davis Congrats and look into ELPs Endorsed local providers for an agent on Dave Ramsey's website or look up Zander insurance