All Forum Posts by: Daniel D.

Hello!  

One of of my big "must-haves" on a duplex is separately metered water..  I didn't see it in your proforma, so I assume you will not be responsible for it..  correct?  

A recurring nightmare of mine would be someone who wants to "stick it to the man" by running water all day while they were at work!   So I have only purchased duplexes with separately metered utilities!

dd

When I first got into real estate investing I used to ride my bike around neighborhoods that I wanted to find opportunities in. I found a street with duplexes on one side and SFH on the other, in a nice neighborhood. I was a bit surprised that they were duplexes, but the mailboxes gave them away. So when I got home, I used the county tax appraisal website to get the names/addresses of the owners.

I drafted a short and sweet letter - signed each one, and hand addressed the envelopes.

Out of the 13 properties on that street, three owners representing four of the properties called me back.  I ended up buying two of them over the next year.  I should have purchased all four.

Mail sure worked for me..  While I don't feel like I got the properties at fantastic prices, at least I got my foot in the door before they were listed.  

Good luck!

I have been using Kwikset handlesets/deadbolts since '09, and now have them in six units (as well as my house).  No issues yet, so I recommend them...  but I do suggest you pay for the cradle, just in case you spaz out while re-keying and mess one up...  trust me, it can happen.

Welcome back to Texas!  

My wife and I like to watch Income Property - the numbers drive us a bit batty (the houses are oh so expensive and the rents are not), and make us thankful to live in Texas, but we love the show and like to see how the finishes look.

I use Allstate as well, but be careful.  The insurance you get if you just call and give them the address and ask for a landlord policy may NOT be the best coverage for you.  Allstate has several options on their landlord policy that may or may not be in effect unless you make sure they are.  Vandalism coverage, etc., the extras only cost a few dollars but might make a big difference.  Best bet is to sit with the agent and see all of your options and which work best for you.

Daniel

Bryan, that is a fantastic summary.. thank you for taking the time to post!

True, but without sufficient cash flow you might not get the chance to realize the other three...  

Daniel

I guess I look at this a bit differently..  but I'd put 20% down, heck, maybe 25%.  In an ideal world, you would have more houses and more cf if you put less down , for sure.  But I don't live in an ideal world, and I doubt you do either.  Putting more down means that if you mis-judge, or if your long term maintenance numbers are higher than expected, or you have other houses that are empty , etc, that this property will be contributing more to your finances so that you will still make ends meet.  Over financing can be a slow death.  It makes you vulnerable.  Higher cash flow per property is safer (and easier) than less cash flow over more properties.  Imo.  Fewer tenants, roofs, ac units, per dollar of cash flow.  

In the end there are several ways to win at RE, and several members above have given great opinions.. but I'd choose slow & steady..  Good luck!

Daniel