All Forum Posts by: Craig Janet

I know it can frustrating but you are going to have to let this go until the lease is up. Some people like there place ice cold. I have a good friend that pays for his own electricity and he keeps is AC on the lower 60's. You need a coat in the summertime in his house.

If this is causing you this much stress. I suggest you install a meter and let the next tenant pay their own bill. 

Rates on CDs and treasury bonds are over 5% and were just increased again today. So you would only be saving %1 by paying off your mortgage vs a CD or bond. If you invest in CD you would have easy access to your money should you ever need it. Your 140K would generate about $600 a month and you could put that on your mortgage. 

Other than a busted pipe or HVAC failure. There aren't many tenant emergencies that can't wait a week. If there is a true emergency then the tenant can make arrangements for the repair person or you can pay off hour rates. My problem is I do all the repairs myself, so I don't have a reliable handyman on call.

Go on vacation and relax! 

The prepayment penalty is insane and possibly illegal. Plans change sometimes good sometimes not so good, who knows you might want to sell in 5 years. What happens if there's a fire, you get hit by a bus, a developer makes you an great offer, this seller would make 10's of thousands of dollars on interest he didn't earn. 

I would love to see the details of this loan because I'm an accountant and can't wrap my head around how this amortized.

It's crazy that the banks won't accept their cash deposits. I have no problems with my bank accepting payments from tenants. Maybe you should try a local bank or credit union. 

I hate leaving a unit empty but a responsible tenant will be looking for a new place in advance. If someone is looking for a place to move in immediately that's a big red flag. They usually say they have cash and need to move out asap because their landlord is terrible.  

Just a quick calculation. 

10K loan 5yr at 3% interest. Total interest Paid $781

10K 5yr CD at 4% interest compounded monthly. Total interest earned $1210.

Total savings $429.

 You're not calculating the interest on the loan correctly. You will not be paying $80 a month in interest over the entire term. Every month the interest will go down and the principal will go up. You need to look at amortization table. 

No matter how you spin it getting 4-5% in interest is always better than paying 3% interest on loan. Period!! Unless you just like being debt free. That's a personal choice not a good investment choice. 

I mean this is the best way possible to help you, but if you don't understand this concept you have no business investing in real estate.

I hate getting cold calls from wholesalers. Please don't knock on my door while I'm eating dinner. You will not get a pleasant response. I think most cities have a no door to door sales law and yes you are trying to sell them a service. You want to unload their home for a fee. 

Go online, google facebook, newspaper, etc and make a list of every handyman in the area. I usually start with about 10-20. Start calling one by one. Half won't answer, most of them won't show up. Don't stop calling others just because someone said they will do it, they probably won't show up. Just keep going down the list to until you find someone your comfortable with.