All Forum Posts by: Chris Allen

@Marc Winter I am completley up for constructive criticism, so thank you! I will know more about the actual structure of the property tomorrow when I get it inspected, but from what I have seen, it looks to be in great shape, freshly painted exterior, roof looks new, the two AC units I saw driving by looked relatively new, no cracks in the brick siding. Since this is a 4-plex I am saving that percentage per unit, so 5% for $2400 rent is $120/mo, or $360/mo for the 15% total. 

Instead of taking the PM% profit (since I am managing myself), I will probably build up my reserves for that random window break or water heater replacement. So thank you for making me think about saving a bit more! 

@Marc Winter, then what would you reccomend? That's not 4-5% as a lump sum, but 4-5% per group; so 5 for capex, 5 for vacancy, and 5 for repairs. 

Thank's for the great info! I listen to the BP podcast all the time, but I will have to go check out Corey Peterson! And I have been thinking about reaching out to an attorney, but for now, I have mainly been looking at google, BP, and other online resources. 

Got my offer accepted for my very first property, which will be a house hack in a 4-plex. Current rents: A- Exp 2/29/20 $525, B- Vacant, C- Exp-7/31/19 (Will move into this unit), D- Long Term month-month $525. Budgeting about 4-5% for vacancy, repairs, and Cap-Ex. Unit B is currently being remodeled and the current owners are accepting applications for that unit at $550-595, I am trying to negotiate with them to either only lease it month-month or rent it for what I am wanting to charge rent for. A co-worker rents her units out for around $695 in the same neighborhood/same layout. 

Looking not only for advice on how to landlord/manage the property myself, what books to read, tools to use to collect rent, organize, etc.. but also any recommendations for increasing rents/structuring contracts up to where I am wanting them ($625-650). Should I keep month to month contracts, or push for yearly? 

@Bruce Scannell

Thank you, the properties that I see up for auction that I am really referring to are very nice properties, pretty rich neighborhood so I know that it's not the condition that makes it un-financeable; so I don't know what other reasons it may be. But I was just wanting to see what the odds were for that to happen. Thank you!

I plan on going to an upcoming auction but don't have much capital, really going just for the experience. I currently have a pre-approval letter for bank financing and could potentially have around $20k to make a deal if there were one to go for that price. My question for "cash-only" sales are there any instances where a cash-only property would decide to accept bank financing? 

So I found a really nice single family home that currently has tenants renting out the 2:1 garage apartment. My question is if I turned this into a complete rental, are there any issues with renting out the house and garage apt to separate tenants? Basically renting it like a duplex?

@Chris Mason So I just talked to a lender who does 203k loans and is local. He was almost deterring me away from that loan at first, because of the increases closing cost, effort to organize contractors, HUD consultant, inspector, closing time, etc... I explained to him my goals and he was a little more accepting of it but it made me think, and I was wondering what yall thought about this other way to go about it. The property I am looking at has ARV of 140-150k, asking 115 but I was allowed to get a foundation estimate of my own that came back at around 18k, not including the repair of drywall, flooring, foundation repair, etc...,.I was thinking estimate about 40k total to be safe, the sellers are motivated. If they were to take 70k, could I do the basic updates on my own, then refinance enough to pay my own foundation and repairs and not have to go through the 203k process?

Thank yall, this thread has been really helpful!

@Eric Carr I'm pretty sure they are, the county assessor says it's a 2.8 acre lot and looks like all houses are on the same lot. And yes, I believe they have 2 of 3 rented right now.