All Forum Posts by: Caleb Fledderjohann

@Jacob Rowland Get a debit card and checking/savings account. Pay everything in cash.

@Lamontis Gardner I researched properties from North Carolina to Kansas, and Texas to Michigan. I ended up investing in northwest Ohio.  With investing, numbers matter, markets matter, margins matter.  However, if you're going to invest out of state or a good distance from where you live, the team you have matters most.  You need people you trust.  My realtor is also my property manager and I have built a relationship with a contractor in the area I invest in (about two hours from where I live).  

I have some basic spreadsheets I use to analyze deals.  It's in depth but simple enough to only take a couple minutes with basic information on a property.  Let me know if you'd like any of the information or have any questions.

I'm looking at purchasing a SFH specifically for short term tenants. There's a refinery near by that contracts work out to guys who usually come in and work a couple months at a time. Anybody have any ideas on rent based on number of months? Do you pay utilities or let tenant? The property is 1b, 1ba and about 750 sq ft.

I was thinking about making it a sliding scale where the tenant would pay a certain amount based on months.

Weekly

1-3 months

4-7 months

8-11 months

1 year lease

@Garrett White Does the $190,000 include the cost of the duplex or are the numbers strictly the new build?  Creative idea, nice job.

@Account Closed Will you be using this guy on a regular basis?  For instance, I pay my property manager 10% of rent collected per month.  That covers everything she would need to do each month.

@Account Closed 

I use a simple google sheets spreadsheet to calculate my expected income and expenses. Here's an annual list:

Property taxes, insurance ($1000 deductible), Property management (1st months rent + 10% per month after that), and $1,000 miscellaneous expense (home repairs), which is typically an overestimate. I also like to factor in the impact of income tax from the revenue of the property (my accountant told me to factor in 26% - Ohio). Gives me a better overall view. I always take worst case scenario into perspective. An informal rule of thumb I've found is that if two months rent is greater than property tax and insurance combined, the numbers usually work well.

A couple random expenses I've had from my two properties since April (after tenant moved in):

Central air issue, broken screen on screen door, lack of hot water in shower, clogged drain from toilet

I'd be careful in renting to a friend.  They may feel you would ben/break the lease because their your friend.  That could cost you income down the road.

Let me know if you have any other questions.

@Jeremiah Akindele I don't know what level of investments your looking at, but $40,000 can get you started on a property (or multiple).  From that point, a lot of self education takes place with real-life scenarios that you can't duplicate in a workshop.  Save your money. Best of luck on your investments.

@James Ahern I use a simple google sheets spreadsheet to calculate my expected income and expenses.  Here's an annual list:

Property taxes, insurance ($1000 deductible), Property management (1st months rent + 10% per month after that), and $1,000 miscellaneous expense (home repairs).  I also like to factor in the impact of income tax from the revenue of the property (my accountant told me to factor in 26% - Ohio).  Gives me a better overall view.  I always take worst case scenario into perspective.  An informal rule of thumb I've found is that if two months rent is greater than property tax and insurance combined, the numbers usually work well.

A couple random expenses I've had from my two properties since April (after tenant moved in):

Central air issue, broken screen on screen door, lack of hot water in shower, clogged drain from toilet

Let me know if you have any other questions.

@Account Closed I keep my investment cash in a wealthfront account.  Easy to move money in and out of with my 5/3 account.  It's current interest rate is 1.82%, and it pays monthly.  It had been over 2% (moves with the fed).

Just finished: "A History Of The United States In Five Crashes" by Scott Nations.  Talks about five different stock markets crashes and the events that led up to the crash.

Currently reading: "Bo's Lasting Lessons" by Bo Schembechler and John U. Bacon.  All about the leadership style and lessons from past Michigan football coach Bo Schembechler.

Recommend: "Crude Volatility" by Robert McNally. Discusses the history and future of boom-bust oil prices.