All Forum Posts by: David Kramer

@Mike D'Arrigo thanks for the input. It is something I plan to do, but am in the decision process for whether we do it right away or after the first year of having it cashflow. I have spoken with a few managers about the implications either way. I definitely value their keen market insights. 

Thanks @Dan Farkas - yeah I saw the deadline on the website. The property won't close until March so I'm putting a note in my calendar to hit up this process next year. If you don't mind, could you share any tricks/tips on what you include on your appeal that has worked in the past? 

@Jim D. - awesome. Appreciate the feedback. I am definitely going to get a quote but it seems like it might not be the hassle or investment (at least for now). 

@Mike Ojo, there has been a good amount of research done into the % of renters that own pets (I think it is somewhere around 60%). There are things you can do to mitigate some of the damage that is more likely to occur from pet owners (mainly flooring choices during the next turn). In one of my places I do not allow pets (a fair amount of carpet and a newer home) but in the other one I do allow small animals (hard flooring throughout). I would definitely consult your Homeowner's Insurance policy as most policies will exclude coverage with injuries from specific breeds of dog. Hope that helps!

If you're having a hard time finding a cash flowing property in your back yard, might as well look in someone else's back yard, right?! Awesome, thanks for the insight! This one is in Wyoming. I am also looking at properties in the West Side and Grandville! 

I am looking to purchase a home in Grand Rapids to use as a rental, but it doesn't have central air. As an out of state guy, I was wondering if any other local investors had any insight on how much of a requirement that is and what premium the market places on homes that do have central air versus those that do not. 

To clarify - the heater is a forced air furnace, so I should be able to tie into the distribution system if I were to add central A/C. I appreciate your thoughts!

David

Not bad! Thanks so much for sharing! How quickly were you able to get contractors out to the site? I've heard a lot of solid contractors took their skills out to PCB to do Hurricane rebuilds etc. Did you use commercial lending due to being at/past 10 conventional loans? 

@Jerry W. Thanks for the reply. I should have specified - The City of Wyoming, MI. The similar age/size homes on the street are right around 1500/yr in property tax (including primary residence exemption). I'm paying 135,000 and the home is rent ready. There is another 3/1 SFR a few roads over asking 150 currently. Other recently sold 3/1s range between 135-155 in that area. Those are the ones I'm seeing an annual property tax around 1300-1700 for primary residences and 2000-2500 for those not taking the exemption. I hope those details help.

How's it going?! I have a property under contract within the City of Wyoming. After looking up the tax info for other homes in the area of about the same age and size, I feel that that assessed tax value is high. How much luck have any of you had negotiating with an assessor's office to re-evaluate the taxable value of a rental property? I budgeted for about 2500 a year in property taxes, and removing the PRE from the current assessed value will bring it closer to 3500/yr. Thanks for the insight! 

@Adnan M. Every situation is definitely unique. In the meantime, even while renting there are ways to cut back on the housing expense. I’m in a similar boat - my wife is finishing up Veterinary school and I have been making payments on her loans while in college while still getting my second rental under contract last week.

Some people will disagree with that and tell you to pay off consumer debt completely before investing. And that very well might be best for some people. But like you said, you don’t want to completely burn yourself out slugging that out over the next 2-3 years and then just be STARTING your RE education and deal searching.