All Forum Posts by: Bruce Scannell

Hi @Zyrus Pugal, I haven't yet. I had some issues come up at the property and am holding off for a little bit. Are you working with them, or have you?

Thanks, Bruce

@Joseph Gambino you can't foresee everything, including crazy family members whether the renters are family, friends or not. So don't feel so bad, it sucks that its right out of the gates but it happens. It's definitely a lessoned learned because its going to be more difficult to evict your friends, however the damage is already done with the neighbors, so I would say, do your best to mend those fences by having your friends as well as yourself apologize and offer to pay for repairs. As far as evicting them goes, if they really are your friends, maybe they will be on their best behavior now, and be great tenants. Never know, either way, it is what it is, learn and move on, there will plenty more "interesting" days in the your landlording career!

Bruce

Thanks @Kyle Jean, that's the thing, I don't know what "good customer service" is with nothing to compare it to. Do you have experience with the SBL program? If so, what is a typical closing cost? I have several quotes from different brokers and they range more than I'd like to see, so makes me hesitant. Thanks again

Bruce

I’m looking to refinance a 26 unit apartment property using Fannie Mae/Freddie Mac and I’m getting assistance from Falkirk Capital. Has anyone else on BP used their services to do something similar? If so, how was your experience?

Thanks, Bruce

@Mark Hughes are you referring to Morris Invest? I wouldn't treat their YouTube content as due diligence but more as propaganda. I invest quite a bit in the suburbs of Detroit and have seen quite a few of his videos. He paints a pretty rosy picture. Granted I think the stigma of the area is worse than it really is on a macro level, but on a micro level it could be a lot worse. Based on my experience in the area and what he's charging, his ROI figures don't add up.

At the end of the day, don’t trust everything you see or hear. Before you sign up with any turnkey provider, make sure you have toured the area and specific property if you can. 

Bruce

Hi @Tom R.. It depends on your lease...if and when you have to return the security deposit. Do you have a lease break fee? Tally up what they owe then if you have to pay, do so as quickly as possible.

Hi @Cameron Burke. Welcome to the party! Real estate is, in my opinion; more logical, predictable and all around fun than the stock market...IF you buy right. If you don’t, it can be pretty dang stressful. 

So with that said, your $600/mo cash flow (if you get that) is only a little over 6% cash on cash ROI considering your down payment. That's not very good since historically the stock market is closer to 8-9% annually, without much work from you, but the duplex will require some "work". You mention others saying that $200/mo cash flow is good, but that's relative to the initial investment. Is there a chance for appreciation for a duplex in your market? In mine, there isn't, since the only people who purchase those are investors and don't get the homeowner appreciation bump.

Also, I think that your estimate of $1000/yr in repairs is low. The duplex is over 20 years old and one new furnace or water heater is going to eat up your annual repair budget and then some. On top of that, one tenant turn is going to cost about $1-2k if new paint or flooring is needed. 

I could keep going but this is just some food for thought, and hopefully helps you out. Good luck!

Bruce

Totally understand, even though they live so close to others, they feel like it shouldn’t matter, nor do they care how their actions impact others. 

They come and go so quick, that I don’t have one at the moment that trumps this one, but I’ll keep following and respond in a day or so I’m sure.

Bruce

Hi Al, that is odd, considering how long she has been with you and how solid her track record is. How many tenants do you have? At this point, I wouldn’t worry about how great of a tenant she has been and start eviction process. I treat all the tenants the same, good or bad, which takes the uncertainty out of it. If you’re late, you get a notice and so on. Now, the good tenants usually follow up and explain the situation and once they pay, tell them to just disregard the notice, and that it’s just part of the process, nothing personal. 

Try not to get emotional, it’s business and if they don’t satisfy their end of the agreement, then you act accordingly.

Hope this helps, good luck...

Bruce

Hi @Josh R., the numbers are just south of rents being 1% of purchase price. In my opinion, and based on my experience, this isn't a good deal. I own several duplexes with similar rents that I bought for half of what you are. Some have been good, some haven't...the net profit is good on paper but one hiccup and it's a loser. How old is the duplex? Do you think there's a chance for appreciation so if you just break even, there's still an upside? Problem with duplexes is they're valued like a SFR but your buyer pool is investors instead of home owners so.

Again, just my opinion, good luck!

Bruce