All Forum Posts by: Steve Maginnis

Hey Jordan. Welcome to the community.  I second everything others have stated.  Charlotte can be tough.  Seems most investors are looking in Gaston county these days.  That's not too far from you.  You should try to network with wholesalers in the area.  There are a lot of people driving, calling and knocking on doors looking for great deals to sell.  This site should help you network with them.  I find you have to be in the right place at the right time.  Getting out there and being in "the mix" will push deals in to your lap.  Property managers have owners who could not sell years ago and became Landlords.  Now they want to sell.  There may be some good deals there if you can work with the manager to get in there before commissions and buy fast.  Just some thoughts.  Best of luck. 

I like the idea of buying a duplex, etc. so you can offset your mortgage.  No need at your age to try to find your dream home.  Five years from now when you have your third baby on the way, you can buy something bigger and rent your side of the duplex.  

I'm very conservative.  I definitely would not take more out of the refi of the two rentals than you need.  I know if I have it, I'll spend it.  I love the idea of having free and clear deeds!  Maybe take out 50-70% from the larger rental, keep one free and clear for future leverage (or emergencies) and use that to put 20% down on a duplex.  If you can qualify for conventional with your expenses on your debt to income, then just try to make large extra payments on the CC.  I don't know how you are, but many of us will spend that credit if we have it available too, LOL.  Keeping debt on it and making timely payments, reducing the debt is good for your credit score.  

I agree with trying to do away with the auto lease.  Better to be car poor and investment property rich (says the guy who buys a new (used) car to  play with nearly every year).  With another child coming, I think you will appreciate having the peace of mind that you are not leveraged to the hilt and still have a larger, more comfortable place to live. Best of luck with your journey.  

Have you thought about transitioning to a senior living community?  The baby boomers will be a huge market over the next decade.  I've found that this demographic tends to tread lightly on my rentals and are generally good payers. The trade off is that most do not meet the debt to income ratio.  However, on a fixed income, I've stretched my requirements and have had good results.  And talk about long term tenants?  I've seen averages of 8-10 years.  

I'm not familiar with your area.  Mine requires all tenants to meet the guidelines.  However, it may be possible for you to move current tenants of one building that needs renovation to other vacant units, renovate the one, and lease it all to the elderly.  Then continue building by building until 100%.  

You may be able to have social security pay rent directly from their checks each month.  You should be able to get some good subsidies and tax breaks as well.  

This may be a huge undertaking, and you may want to consider bringing in another investor to help with the capital, but it could be a great long term investment.  Something to consider.  

I feel it's a decision you need to make yourself based on your situation and goals.  In my current market, prices are very high and I can see an "adjustment" coming.  When that correction comes, I feel the inflated price may put you in a bad equity situation.  However, if you plan to buy and hold for a long time, it should still be a good investment eventually.  Prices being so high makes renting more affordable.  If you are on a budget, you don't have to factor in large ticket repair items if you rent.  I'm a huge advocate of owning and have not rented a property since I was in college.  But that was beneficial for me.  I know how to make most repairs and include sweat equity.  

Also consider if you will need to rent in the upcoming years, if your mortgage will justify high enough rents to break even or make a profit. The numbers just may not add up. It seems sale prices rise higher than rental rates in most markets. It does not make sense to have a $1200 mortgage (PITI) if you can only rent the property for the same amount. Vacancies and repairs will set you up for a loss until the rates can improve your profit dramatically.

Just a reminder.  New investor/Landlord Meetup first meeting this Thursday.  You don't have to smoke or drink to come out and enjoy the company.  Let's connect.  Here's the link:

https://www.meetup.com/Charlotte-Landlords-and-Sto...

Thanks Jared.  I look forward to seeing you.  Tell your friends.  

Hello all.  I'm just coming back to BP after having worked for another company the last five years.  I'm trying to ramp business back up.  I've been working so hard, I haven't taken time to relax.  I've attended some investor related Meetups recently and thought it was a good idea.  I decided to combine some work with pleasure.  I enjoy a nice cigar, strong drink, and good conversation.  So why not combine a few of my favorite things?  

I formed my own Meetup, designed to bring like minded investors together.  This is not a Meetup where anyone will try to sell you on a program or try to enlist you to do their dirty work.  I honestly just want to relax with others in a comfortable setting and share stories.  Maybe you had a bad experience with a terrible tenant.  Maybe you want to brag about your latest flip.  Maybe you want to ask more experienced investors some questions that have been nagging you .  The point is to relax and enjoy the company.  There is no agenda or itinerary.  That being said, maybe we can all make some good contacts for our own Real Estate team.  

Here's a link to the Meetup.  It will be held at Cigars Etc. 2 on Monroe Rd.  on the second Thursday each month, from 6 until...?  The cigar bar offers $5 liquor drinks on Thursday.  Everyone is welcome.

https://www.meetup.com/Charlotte-Landlords-and-Stogies-Meetup/events/251769688/

Marc posted some good info.  I will add that for future reference, once a tenant defaults on the lease, you can still get possession even if they have the money. Once they default, you have leverage.  Problem is, you cannot accept the money, but at least you can still get the dead beat tenant out.  

+1 on the incentives. It also goes a long way to set up reminders on your phone or other calender to remember the family's birthdays. Just a quick call or note helps a lot. You could friend them on facebook to keep in touch this way as well if you feel comfortable with that. Anything you can do to to help them think of you as family. Naturally, you have to keep boundaries and make it clear that this is business. I had small apartment complexes where on nice days I brought a cheap charcoal grill out and cooked hotdogs. Very inexpensive, but everyone loved it. I guess you can choose to exclude the bad tenants. LOL..