All Forum Posts by: Bjorik Mutize

You excited to get a buy out of L.A 

You have an out with the lease expiring so that is great. Opportunity to give notice not to renew and start fresh.

Make sure the numbers work on the property, get all what you need to run the property out of state, and become familiar with Indiana's rental laws. Audit the actual lease of this tenant during due diligence if you are just going by word.

Would love to hear some further inputs on St.Louis.

$2940-$2340=$600 income before debt service

Expenses are light in my opinion. Also, what does this look like when you take out your mortgage payments. I'd re-run your analysis with 40-45% total expenses and see what that looks like for you.

@Nick Ferrari I personally think your method is fair. Well enough time to set expectations for them and also to start discussions if they can afford the rent bumps.

I think that is great, especially with a polite message. It gets iffy when you are letting them know 30 days out.

Seem's like you learned a lot from what you have done so far. Welcome to the forums! Look out for a connection request, it is great seeing other new investors in MSP.

@Tim L. That's the thing man. Look at the opportunity cost of you holding onto something upside down vs. taking the loss now. Sure you can hold and wait for appreciation but i think there are many, many threads that state don't bank on that especially where the real estate cycle is today.

But yea i say if you can creatively figure out how to add-value then great. If not, take a haircut then move to something that will bring you money.

 Exactly.

Blame your lease before you get into texting battles lol.

If it really gets to you hire out to let someone else deal with the texting for you.

Good you are realizing this now than letting it fester. 

However, before you give up i'd look at your line items and see if there is any potential ways to either 

1) Decrease any of your expenses

2) Achieve some kind of rent premium. Can you rent per room? Short term rental options, Airbnb? Any add value to kick rents higher?

If it's an absolute bust you can sell, lick your wounds and crush it with what you know now.

Wow we have a treat! Investment Pro's, Scott and Drew Hoefler, join us to discuss their story on how they got into real estate, tips and tricks for new investors, and how they bring the most A-grade service to their clients they serve to the metro. Scott and Drew come with a impressive track record of being Co-Owners of Minneapolis real estate powerhouses including the Duplex Doctors and now Side by Side Realty. This is not an event you want to miss. RSVP asap.

Conference Room will be further posted in thread. 

@Daniel Anshus 

https://www.meetup.com/MN-Lake-Areas-Real-Estate-Investing-Meetup/events/262350617/

https://www.facebook.com/MinnesotaMREI/