All Forum Posts by: Brad Franks

I have a house and duplex I built together. The duplex is renting out beautifully, but the house is not. The rent amount seems to be out of the price range for most renters. The market is hot right now! I could probably sell within a few days! Sale price would probably equal about 12 years worth of rent. The house is brand new construction now, and it'll only bring new construction price once. I do want to build up a larger rental portfolio, but I'm thinking this one may be best to sell and use the profits to invest in another area. Does anyone have a formula for when to sell for versus when to rent? I would really appreciate some advice. Thanks! 

I found a deal from an older investor that’s looking to retire. House is solid! Block wall construction, roof looks less than a year old, decent location.

Price negotiated to $33,000!

1282 sqft living plus carport, back porch that’s been closed in as a utility/laundry room. 1/4 lot.

Here’s the kicker! The outside is fantastic! Structure is fantastic! Everything else is terrible! It’s a complete gut job inside. I’m basically buying a shell. New HVAC, new electrical, new everything inside!

It’s important to note I’m a licensed contractor. So, I can permit and complete the work needed. My estimate on the high side would be 40,000. So, I’ll be all in at $73,000. I should be able to cash out the deal, and refinance when complete after 1 year. Rent should go for $1000 per month, or maybe more.

Does this sound like a good deal? I'd love to especially hear from anyone that has experience with BRRRR.

If anyone is wondering about the landlord forms. I decided to upgrade to the Pro membership since @Brandon Turner keeps recommending on the Podcast. The Landlord forms are awesome! Exactly what I needed, and a great value compared to hiring a lawyer that may not be familiar with these specific laws anyway. The landlord forms are a great perk with the Pro Annual membership. 

@Kyle Mccaw thanks for taking the time to share advice with me! 👍🏻

@Kyle Mccaw what do you think about collecting a security deposit and last months rent? Previous landlord did not collect a security deposit. What about the dogs? Should I collect a pet deposit? The place isn’t in bad shape for a rental, but it is in a condition where I’m not too worried about pet damage, becuase I’m planning to renovate anyway. My biggest concern is the liability from dog bites, which may be unlikely, perhaps I’m over thinking it.

Are the BP landlord forms worth the $99 purchase?

I just closed on my first rental property yesterday, a duplex in a good location. Both units are currently rented. There’s no current lease, and the previous landlord was not managing the property at all. The rent currently is way too cheap. Currently $425 but should be $600 as is, and I plan to renovate each side as tenants move and raise rents to 700-850. $425 doesn’t revenge cover my mortgage, taxes, and insurance so they have to go up. I’m not sure the current tenants can afford the rent increase, at $600. I would appreciate any advice you may have for me. However, I specifically need some guidance on how to deal with inherited tenants. I need to get them in a lease, and raise rents to at least $550 just to break even. The one tenant has a couple dogs, which I really don’t want there. Should I take security deposits? First and last? I’m not sure how to handle the situation, I almost wish it were vacant. Please, any advice would be awesome! Thanks!