All Forum Posts by: Daniel Winsor

Wow 64 pages. I'll have to go through and read. You've most likely answered my question already but:

I'm house hacking my duplex. Rent out the 3/2 and live in the 1/1. Am I correct in my thought that I can deduct any maintenance/repairs for the 3/2 but none from the 1/1. Additionally, I replaced the street facing fence which seals off the "courtyard" in the 3/2. Is all or any of that deductible? Yard maintenance and pest control as well... A portion of the overall cost as it benefits the rental as well?

Thanks in advance. As I said I'll read back through. Sure there is some good info in there.

Thanks for the replies all. Yes, it's a strange situation. The "primary tenant" was a holdover from the last batch. I specifically said I didn't want to do individual rooms, and she said she'd handle it. Naturally, it morphed into individual rooms in a way (people treating deposits as separate, paying rent separate, requesting individual locks on rooms, etc.). While they are on the lease together, I would feel really awful requiring the other tenants to eat any lost rent or deposit money. I don't think I'm losing any money and I didn't see any damage in the room (I haven't gone in because it's absolutely disgusting...). Sounds like the other tenants will throw her stuff out so no biggy. For a follow up; while I won't be pursuing any legal routes, is there any way I can leave feedback somewhere so it shows up on a background check?! I don't want another landlord to end up with this or a worse situation because of this person.

I own a duplex and rent out the 3/2 opposite me. I really didn't want to do separate rooms, and the lease isn't written as such, but the tenants treat it that way. Lease ends November and tenants are moving out. One of the tenants, the one who had red flags when moving in, has apparently disappeared. She told me she was leaving early (today) and to just "keep the deposit for the last month of rent". I was irritated by this, but I insisted on a larger deposit, so it should be a minimal loss if at all. There are no individual leases, it's all one lease. The "main tenant" that is kinda in charge of the house told me yesterday that the other girl has just disappeared. I was told the tenant lately has been drinking and partying a lot (not at the house), is a slob, and might even have tried to break into the other tenant's rooms. She is a bit of a hoarder and has a lot of stuff in her room, including some medical supplies she needs to live. I asked if she just abandoned the stuff and I was told that her dog is gone and she hasn't been seen in days. The primary tenant is insisting that I clean out her crap (have it thrown away). This is the first experience at all I've had like this. Some quick looking shows that I need to have a court order and then the police will remove her belongings. This doesn't include abandonment, which apparently gets more complicated. The current standing of the situation is; she hasn't paid rent for this month. She isn't responding to my texts and I have no forwarding address for her. Lease ends at the end of the month, but she told me in person that she was going to be out of the room by today, and ready for a walkthrough. Do I start the eviction process? Do I need to talk to a lawyer? I could have the other tenants clean her stuff out and offer them a credit for the work, as it's not me doing it, its her roommates?

I bought my second home about 18 months ago. Both had VA loan. It's really not complicated, but this WAS before the new rules came out. I had a $240k mortgage in CA, and the house I was buying was $550k. Since that went above the $529k I was allotted, I just had to pay 20% of the difference.

I also received a $3000 check I did NOT expect because I used an agent that was recommended from some VA site.

What was said before is correct. The funding fee gets slightly higher with each purchase. You might run into some ethical issues because they will ask if you plan on living in the house for at least a year (I think - just did a VAIRRL myself), which you may or may not be doing.

Also, I understand what others are saying, that 0.5% might not be enough, but $100 a month isn’t insignificant. If you can do a no money refi, I recommend 100% you take it. 

Currently live in Key West. Feel free to pm with any VA questions and I'll try to answer as best as I'm able.

I'm assuming this is in NY? I've lived in Alaska and now, Key West. Windows in both locations serve very different purposes. Alaska, the triple pane windows are expensive - in the realm of $1000 for a fairly normal sized window. Insulation is a big thing. In Key West, impact windows are the big deal to weather hurricanes (no pun intended). Not as expensive, but still $500 or more for a decent sized window. 

I doubt NY has any kind of insurance credits, but in Hurricane Alley, substantial savings can be had from installing impact windows in some cases. Additionally, I don't have to worry about tenants boarding up windows when a Hurricane is inbound to prevent damage and expensive repairs.

That said, I doubt renters are going to be swayed to rent based on having high end windows to potentially cut down on utility costs. 

Just had my new tenants sign a lease to move in the 1st of February. One guy I had a few issues with is moving out and three girls are moving in. I learned a lesson with the guy - he did NOT clean up his dog mess and I let it go because I didn't want to "rock the boat" over a relatively small issue. He paid on time, with minimal reminders.

For the new girls, I have ALREADY let so much slide or don't take potential opportunities. Examples: I take a refundable pet deposit instead of a non-refundable one or a monthly fee, I currently pay the whole water bill without taking money from tenants because the duplex is watered together (I will eventually get a separate meter but the outlay is more than I want to pay right now) assuming it doesn't get out of control, paid for the new doorknobs on the bedrooms because the tenants requested locks despite the lead tenant saying they would pay for it, planning to replace the microwave hood simply because it's louder than it should be though it still works, etc.

I'm probably losing out on a minimum of $100 monthly. The reason being because it's not overly significant right now. I live in the rear unit and after refinancing, plus raising rent this round, I'm actually making $425 a month before expenses. The ~$2000 I'm not paying in rent to live in a large one bedroom in Key West is so substantial to me. I guess I don't feel the need to try and get that extra $100. The bigger "problem" is that I have rented a LOT, so I don't bother with repairs or the less expensive options. I had my previous tenant had a washer leak, so I just bought a new one. This results in a higher cost over the year, but again, I just kind of assume it's the cost of doing business.

I dread the first time a tenant is late with rent or can't pay at all, or I am forced to evict someone. 

So, my question or advice solicitations regard developing that "killer instinct" trying to maximize profits. Does it happen over time as you learn from experiences with tenants? Just an extension of your general personality?

Thanks for any input!

From what I understand, hard money is not going to be an option for an auction. I recently was looking at one and I know auctions are different based on state/area, but you probably need the full $100k or so up front. Hard money won't provide that until you have a purchase agreement. That's how it was in Florida, might be different in CA. I lived in the Central Valley for a while. I also skimmed most of your other post. I think your utilities are too low, property taxes too high. PMI can be removed as you are well under the 75% LTV number after the refi. I think your 20% for Capex/maintenance are pretty high, but you are going to want to keep things tip top shape to be an attractive option. If EVERYTHING worked out the way you wanted, I think the deal would be a decent one, giving you $150 a month. However, I think relying on such a fickle tenant gameplan makes it not a good deal. One single month of vacancy would wipe out your yearly profits.

In case you don't have experience with property in South Florida, take into consideration the property insurance. You will probably need hazard, wind, and flood. They can vary WILDLY year to year. My policy for wind is doubling or tripling this year. That alone could make your $300 a month cash flow go away very quickly. I would make sure you understand those numbers well before pulling the trigger. That said, a good rule of thumb I've seen is $100 minimum per door. Even $100 a month is pretty low in my opinion, but that is my threshold.

Currently living in a Duplex in Key West, Florida. Purchased on a VA loan, so required to live in the property until I move. Just read up that I can refinance using an IRRRL which would allow me to move out of the property to purchase a new one. Rates have come down slightly since I bought, so I could hopefully keep my PITI the same. I may have to pay $3000 in points in order to secure the loan, but that would quickly be made up in additional rental costs.

Duplex is a 3/2 and a 1/1. I live in the 1/1 and rent out the 3/2 for $3300 a month which pays the entirety of the PITI + $100. By living in the 1/1, I am living in KW, FL for nothing out of pocket, keeping my entire $3300 BAH. However, it's a large 1/1 and would reasonably be expected to rent for $1500-1800 a month. I self manage for the time being, so my expenses wouldn't rise appreciably. I am here for another two years at a minimum, but may have the option to stay for longer after my commitment is up.

If I do this, it would possibly free me up to purchase another home in the area using the rest of my VA money. Currently nothing on the market that would fit my requirements, but the one I bought never hit the market either. If lightning struck twice (I think I got very lucky), I would own two duplexes and be adding $1500-1800 a month to my cash flow.

Any downside to the IRRRL at this time? Are rates expected to fall and I could get a lower rate if I wait?

Military guy here, so I have an advantage in some ways. Got sent to Key West for a ~3 year stint middle of 2018. I was luckily there for work two months prior, so I was able to start looking at some places. I was looking for SFH and duplexes. The one I ended up purchasing never hit the market, but the female owner had a rough year and my agent said she'd probably want out of there for the right price.

Military provides an allowance for housing. It jumped from $1300 to over $3000 a month after moving from California because of the Key West prices. As I'm not married, I couldn't live on base.

Ended up buying a 3/2 and 1/1 duplex for $550k. Put about 60k down and used a VA loan for the rest. Total monthly price is ~$3100. I was trying to rent the 3/2 for a couple months for $3500 before I realized I needed to do a little work inside to get it rentable. Ended up sinking about $3-4k to fix some of the interiors, take down a lot of crazy shelving, and paint just about the entire house. Needs some ongoing renovation (remove a skylight in one of the bathrooms, install ceiling fans with lights in the living room, etc), but nothing needs doing immediately.

Currently rented out the 3/2 to a single guy for $3300 a month. I'm paying the entire mortgage from that, plus putting a couple hundred in my pocket. The biggest factor though, I'm now pocketing the ENTIRE $3k from my housing allowance. I realize I can't say I'm cash flowing over $3000 a month, but, compared to the majority of my peers, I am! When I move out of the 1/1, I'll have updated the floors and kitchen, plus slapped some new paint in there as well. Expecting to be able to pull in $1800 for that. 

I got very lucky with the deal timing. To live for free in Key West is not easy to do. I am putting the $3k a month into an account to try and buy another house in a year.