All Forum Posts by: Byron Bailey

Due to interest rates, refinancing is more expensive, so often times more (or most) of your own money needs to be left in the deal in order to make rental income make sense, which ultimately slows down your ability to move from project to project.  Also due to interest rates, selling houses is seeming more risky because the buyer pool has narrowed - houses are starting to sit on the market longer, and prices are being dropped more frequently.

How are you all pivoting due to these market changes?

Cheers!

Due to interest rates, the buyer pool is narrowed - houses are starting to sit on the market longer, and prices are being dropped more frequently.  Also due to interest rates, refinancing is more expensive, so often times more of your own money needs to be left in the deal in order to make rental income make sense, which ultimately slows down your ability to move from project to project.  

How are you all pivoting due to these market changes?  

Cheers! 

Quote from @Theresa Harris:

Was there another bathroom she could have used? Did the repair person warn her against using it?

 There are 2 other bathrooms in that house, 1 of them is right outside the master bedroom.  I'm not sure if the repair person warned her or not.  

Hi all,

Enjoying an annoying landlord experience and would love your advice.

Tenant reported the master toilet to be leaking slightly from the handle. We got a maintenance guy out to inspect and repair, but he didn't have the part so said he would be back next day to fix. After maintenance guy left, tenant proceeded to use the toilet and leave the house for a couple hours. Upon her arrival back to house, the toilet had sprung a profuse leak from within the tank and had leaked all over the floor, down thru the subfloor and the downstairs ceiling below.

We were able to get a water restoration company out that same night to set up fans which stayed in place for 3 days until moisture readings returned to normal. We ended up having to cut the affected drywall from the downstairs ceiling in order to get everything properly dry. Now drywall crew will have to come out to replace and refinish that portion of the ceiling.

This maintenance call devolved from a $130 fix to a $2000+ dollar fix because of a bonehead move from this tenant. (Unfortunately, our deductible is $2,500)

It should be noted that she sent multiple maintenance requests the week before this happened, including a crack in the fridge shelf, a broken HDMI cable, and not being able to light the fireplace. So clearly she's very proactive about spotting and reporting things that are wrong, but has no common sense when it comes to not exacerbating things. This tenant is paying $3,450 a month for rent.

Should we send her an invoice for a portion of this repair due to her negligence?

I used SoFi for my unsecured loan. They will loan between $5,000-$100,000, on a fixed rate, with fixed monthly payments, for a max term of 7 years. Based on your credit score and income, you would likely qualify. I did everything online and they wired money directly into my account. I took out a 40k loan and it costs about $900 in interest for every 3 months I carry the loan. Good luck!

I would go back to California in the 80s, Los Angeles and Orange County specifically, and buy houses and apartment buildings by the dozens. This is assuming we have unlimited finds right? :o)

@Melanie McDaniel Looking forward to it!  

I'll be at the meeting!  Looking forward to meeting you all!

@Account Closed That is definitely in the cards as well!  Ideally, I would pull it out and roll into a different property should things go smoothly with this one.  It was built in 1921, so who knows what lies beneath!  Thanks for the reply!

Hi all,

A deal came out from a wholesaler this week and an option came about to take over the note from the seller.  Here are the specs...

Duplex. 

Upstairs: 2 bedroom, 1 bath, 1000 sqare feet, rent $850-1050.  Technically rental ready but I would like to put some TLC into it. 

Downstairs: 1 bedroom, 1 bath, 624 square feet, rent $550-750.  Needs some work.  Have budgeted $10k for forced appreciation.

The seller has 2 notes open on the duplex.  One for $35k and one with $55k remaining.   The deal is that I will put down $35k so they can wipe their one note, and I will take over their other note, which will have a monthly payment of $590 and will be paid off in 2026.  

Assuming I can get $950 for the top unit and $650 for the bottom unit = $1600 total rent

Minus...

Mortgage: $590

Taxes: $91.96

Insurance: $100

Vacancy: $80

Repairs: $80

CapEx: $183

(maybe) Property management @11% : $176

= CASH FLOW $299.33  

This is a stellar rental area, nice neighborhood and near a military base so my plan is to hang on to it.  I am also drawn to it because of the short loan payoff timespan.

My emergency exit strategy is to utilize a partner (already agreed) to fund a full rehab and sell the property. ARV for a property like this is $150k-$180k. A flipper just sold a similar duplex on the same street for $180k.

This down payment will be the biggest check I have ever written so I am a bit nervous right now!

Any advice is much appreciated!  Thank you all!