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All Forum Posts by: David H.

David H. has started 6 posts and replied 117 times.

Post: Choosing a Paint Color and Brand

David H.Posted
  • Real Estate Investor
  • Harvey, LA
  • Posts 119
  • Votes 80

I'm transitioning to the light grey palette. Lazy Grey from Sherwin Williams with white trim goes with nearly everything, and it's just a little bit different from everyone else who uses variations of beige.

Post: Why is everyone against paying for a seminar?

David H.Posted
  • Real Estate Investor
  • Harvey, LA
  • Posts 119
  • Votes 80

I'm not against paying for a seminar. I'm against paying thousands of dollars for a few days of half instruction and half upsell.

Post: Late Fee Pricing

David H.Posted
  • Real Estate Investor
  • Harvey, LA
  • Posts 119
  • Votes 80
Originally posted by @Chris Vacek:

Lots of legal implications with "late fees" and that is the reason I dont charge late fees...Instead I implement rent discounts for paying on time.  For a 1500 lease the amount on the lease will be around 1600 with a $100 discount if the rent is paid before the 1st.  I find this works better (carrot instead of stick) and also avoids the legal headaches associated with late fees.

  dude, that's a late fee.

Post: Late Fee Pricing

David H.Posted
  • Real Estate Investor
  • Harvey, LA
  • Posts 119
  • Votes 80

what happened to good old competitive analysis?  Don't people benchmark their pricing anymore? I charge $50 after the 5th.

check with your competition and see what they're charging. Match it. You don't want to undercut yourself or maker or a competitive disadvantage by pricing the late fee high or low. Compete on value and monthly rent pricing.

Post: I'm a Plumber/Investor & I'm here to help

David H.Posted
  • Real Estate Investor
  • Harvey, LA
  • Posts 119
  • Votes 80
Originally posted by @Catherine Coy:

OK, thanks.  This will be a good reason for me to learn how to do that with my iPhone.  ;-)

 smh

Post: I'm a Plumber/Investor & I'm here to help

David H.Posted
  • Real Estate Investor
  • Harvey, LA
  • Posts 119
  • Votes 80
Originally posted by @John Hauser:

@David Doyle thanks for your kind offer! I have a 2-unit rental property that keeps having a backup in the main sewer line. We've had handymen rod it out three times, and each time it's paper towels and other paper products which are causing the clog (the clog is between the basement and the street). Of course both tenants deny responsibility. Landlord-tenant laws being what they are, we can't force everyone to meet over dinner and solve it like Agatha Christie or Matlock would. Any suggestions on how to narrow down the culprit? Thanks!

threaten both tenants with the rooter bill of it comes again. If one of them acts a little suspicious, it's probably that guy.

Post: What do i do with this Old Nursing Home building i just bought!!!!

David H.Posted
  • Real Estate Investor
  • Harvey, LA
  • Posts 119
  • Votes 80

spend $0.99 and download "How to make big money in small apartments."

Just do it. If you ask me why, I'm just going to ignore you and pretend you don't exist.

Post: Can Licensed Salesperon (Agent that's not Broker) Collect Commission in ANY CIrcumstances?

David H.Posted
  • Real Estate Investor
  • Harvey, LA
  • Posts 119
  • Votes 80

find a broker willing to take no override.

become a broker.

sell off MLS.

Post: What do i do with this Old Nursing Home building i just bought!!!!

David H.Posted
  • Real Estate Investor
  • Harvey, LA
  • Posts 119
  • Votes 80

bottom line, this won't be easy, so I hope you got this thing real cheap.

Post: Could this be a good deal even though it has negative cash flow?

David H.Posted
  • Real Estate Investor
  • Harvey, LA
  • Posts 119
  • Votes 80
Originally posted by @Kay H.:
Originally posted by @Barbara G.:
Originally posted by @Amy Van Ollefen:

Depends on how much value you put on living in the specific area you want. As a pure investment scenario, negative cash flows seems like a pretty obvious bad deal. But the factor of you living in the specific area you want weighs in heavily, and you can get other people to help pay the mortgage, that's better than paying it all yourself. If you've taken the time to research properties in the area, and these are the best numbers that seem to come up, then it may not be a bad thing to go for it. It depends what you're ultimate goals are. 

 We have narrowed it down.  You want to live in this area.  Is this the way you want to do it?  Is the $800 or $900 rent you will be paying a good deal?  You will also learn how to be a hands on landlord owning this property.  That's worth something.   How much is your water and sewer and garbage collection?  If I was young I would pay a big premium to live in Greenwich Village in New York, or in the 80ties near the Museums and that would be great.  Is this area  easy to sell when you want to move on.  How much, as every one is asking is a similar apartment renting for in a similar building?

 Ohh I finally see what you mean by saying I will be paying the rent. But will I really? The p&i is 1305 and there are 2 renters paying 1400 hundred all together. So I would only have to pay the tax and ins payment. I'm sure maintenance and vacant won't happen every month right? 

What could I do to possibly make this work? Lower the sales price ?

LOL ???? very rookie...not insulting you, but just pointing out the fallacy of P&I being the rent portion and the TI being holding cost. Your "rent" is the opportunity cost of not living there and renting it to another person. By not charging rent to another person, you are in effect charging rent to yourself.

I did some quick research, and you can probably get other FHA homes for less. Bottom line, negotiate a lower sales price to get to breakeven cash flow based on the condition it is in today. If you invest in improvements, target a 50% return on capital ($20k value for $10k invested). If you love living in the area and can't make the numbers work, do what I do and rent.

I've never owner occupied in years. I rent in the expensive part of town because my landlord is willing to lose money on the deal and living a pipe dream about depreciation and appreciation making him money at the same time! ???? Don't tell him I said that!