All Forum Posts by: Chris Roush

Thanks, Greg. Because there is only 1 toilet in the house, it would definitely qualify as an emergency each time. The issue has specifically been around the power flusher/bladder. They've repaired it 3 times now. I'm trying to figure out if it's related to improper repair on the first 2 visits, or if it was just time to replace it. On this last round of repairs ($400), they replaced both the power flush bladder and toilet tank. I'm just trying to figure out when/if I should be cutting them a break. I realize stuff goes wrong and it's not always the PM's fault, but I'm trying to find a reasonable line in the sand where I start holding them accountable for the quality of their repairs.

I hate to post about the cliché problem of a toilet not flushing at 2 AM, but I'm currently dealing with this problem with a particular property under management. They have received 3 emergency calls (and charged me accordingly) on a toilet that continues to be a problem over the last several months. I've now spent $700 on a toilet over the last 2 months because of emergency call fees, and I'm wondering if/when to start holding the property manager accountable for the repairs they are performing.

If I do need to be holding the property manager accountable for repeated emergency calls on the same problem, how should I go about approaching them with the problem? After $700, I would've just replaced the toilet rather than trying to fix it 3 times. Thanks for your input!

Hello,

I have a handful of properties that were financed with conventional loans in my own name which have since been deeded to an LLC. Do commercial lenders look at the existing notes on properties and allow a refinance in the new owner's (LLC's) name? I have 2 goals:

1. Optimize and rebalance rates and terms on the package of properties. The conventional loans were done a year prior to the huge drop in rates.
2. Possibly buy another property with the remaining equity

Did I create a mess for myself by deeding the properties to the LLC before working with a commercial lender?

Thanks for your input!

Hello everyone, I am new to managing business accounts and bought 2 properties this year. I transferred ownership of the properties to my LLC, so now the income goes directly to the business checking account. I would like to setup automatic transfer between the business account and my checking to cover the mortgages in my name.

Is there accounting software that allows me to do this? The bank institutions are different between business and personal, so all the tools available via online banking are very manual processes to transfer between institutions. Before visiting the bank and setting up automatic ACH/Wires, I wanted to explore the possibility of cheaper alternatives. I could just write myself checks every month, but that sounds annoying!

I am currently in the process of getting my first property leased. Not all turn-key properties have to come from a turn-key provider. The term simply means that you are buying a rent-ready property. I just happened to find a property in great condition in an area that exceeds the 1% rule. After closing, I immediately handed it over to property management to get rent-ready and start marketing.

The lessons I have learned from this first purchase are:

1. Once you hand the property over to management, you are at the mercy of their work schedule. Even if your property is clean and just needs basic tasks done, if your management team can't do the make ready for several weeks, then there isn't much you can do unless you want to take on the work yourself.
2. I should have spoken with a property manager and got the make-ready estimate done during the inspection period prior to closing. This could have saved valuable time.
3. It may take a couple of months to get your first tenant placed. Be prepared to take on a couple of mortgage payments.

Typically, when buying from a turn-key provider, most of these mistakes can be avoided if the provider ensures that a tenant is placed prior to closing on the property. You get a cash flowing property from day 1. The flip-side to this is that you are typically paying slightly above market value for the property. Some look at this as a bad thing, but only you can determine what your time is worth. I had decided to intentionally start on my own without the help of a provider so that I can figure out how to work with PMs.

I will echo others, since I am currently in the process of closing on my first property. I found a local bank that would allow me to use my HELOC to assist with the down payment on my property. It is important that you explain your plan to your lender prior to shopping for a property. The last thing you want is for the bank to deny your funds late in the underwriting period because your DTI ratio changed without warning.

Because my HELOC's introductory rate is 1.9% interest, I drew as much as I knew I could comfortably pay off within that year's time frame based on my existing budget. Using all unspent dollars from my budget, along with the dollars I am already committing to using as investment money, I am projected to pay off the loan before it hits it's normal market rates in October. Once that happens, I should be able to repeat the process for my second property in the same year.

With that said, I intend to use my HELOC as short term funding for BRRRR deals in the future once I have enough equity position on my primary residence to cover a property in cash (this shouldn't take long in Kansas City). You can only get so many conventional loans before the banks start telling you "no".

I think the property is still worth looking into, it would just be one of those properties that I would have to reflect on after holding for around 10 years. I would decide whether to sell or keep holding at that milestone.

Thanks for the input, everyone! This is what I'm working with for context. Sorry for the sideways pic. It looks like the previous owner extended the deck to twice it's normal size because they had to add a wood slab to keep the power service lines from dangling down (separate hazard issue that I'm worried about).

Thanks @John Warren, I'm trying to play all angles here and am also looking into techniques to extend the life of a deck. If annual maintenance can save me from replacing the deck in 7-10 years, and is relatively inexpensive, then I'll consider buying. If maintenance is expensive, then I may walk away from this one.

Hey everyone! I'm looking to purchase my first property and am currently looking at a turnkey house with a large deck outdoors (12x24x5 ft). From my initial research, it looks like today's rate for new decks is $35/sqft, which puts a deck replacement on this property between $9k-$12k. This appears to be a huge CapEx cost on top of the other major mechanical components of the house. The deck is in good shape now, but I worry about it eating into my profits long term. Does anyone have suggestions on how I might maintain a deck on a rental? Should I avoid them all together?

Thanks for your input!