All Forum Posts by: David Lee Hall, III

@Melonie Dickson my agent has me hooked up with Vacant Express. You might look into them. I’m over in western PA so I know they underwrite our state.

@Tyler Harris you may not get a traditional mortgage due to lack of W2 or current employment. You can use some hard money lenders for long term notes too. I have used Lima One on there Rental 30 product. I have used RCN Capital for flip funding but they too have a long term note, haven’t tried it yet though.

One piece of related advice, get your LLC setup, put the property in it, and then set yourself up with a CPA or PayChex or something of that sort. Start paying yourself now as the property manager. It takes 2 years of that self employment for most conventional banks to fund you while considering that income. You may get lucky with a small local bank that does portfolio lending based off of just that one property. I didn't have much luck that route but it would be cheaper than the HM Avenue.

Biggest thing don’t give up because 2 or 3 turn you down. Ask them why they did. Adjust your presentation to them based on the feedback.

@Anthony Wick I use Whitetail from Sherwin Williams. Ceiling walls windows and baseboard. I have yet to stick to a sheen, but usually satin except kitchens and baths will get semigloss. Sheen is my biggest thing since semigloss cleans well but flat hides imperfections and rarely do I have fresh/smooth walls. Doors, jam, and door trim I use a semigloss white. I think the color is High Reflective White but I am not 100% on that. I always want those in SG due to handprints. Now if I could just get my handyman to not get paint on the door hardware, life would be grand!

@Jon Mason I am very clear that tenants are responsible for such. I have a section that lists tenant responsibilities, I go over such items during tenant on-boarding, and the lease has two clauses, one that they are responsible for all repairs under $25 and the other that they will be billed for tenant caused damages- which sending a plumber out to unclog a toilet would fall in. Overall I try to make it clear that if it sparks or leaks, I better know ASAP, otherwise be adults and take care of the place and I will fix normal wear failures in a timely manner.

I know a “slum lord” that won’t send anyone or fix anything under $350 in value. Garage door opener breaks, tenant has to fix, bath fan died, same deal. I try not to be that guy.

I have an opportunity on a property that has a pretty decent range on resale for a flip ($130-$160k). The seller and I are about $16k off because of this. We are open to at least discussing a contingency seller financed portion of the difference. For example, if it sales at the low end of the range, then my acquisition cost is final, but basically for every $10k the sale price increases beyond that, he would get $5k. I don't really have an issue with this, my question would be how to secure this with a second note. (I am trying to get some ideas here prior to contacting my attorney.) Is it possible to have a second mortgage that could potentially be $0 or alternatively $15k depending on a resale price? 

@Jeremy Marek Not yet on complaints. I am always sure to mention it during showings and point out aquariums are only allowed on the 1st floor if it is a multi-floor home. 

@Adrienne Donner wallpaper removal. Did a kitchen that even had it on the ceilings. A smoker lived there for years. The steamer caused “tea” to run down every surface. The experience made me add no smoking to my leases.

@Rami Aboomar I have only done SFH thus far. Condos scare me in the sense that the board can issues collections for repairs not cover by the fees. Thus you could get huge bills for a new roof or other repairs if the property is not managed well.

@Jeremy Marek My lease has a $25/mo pet rent per pet. Everything is considered a pet, from dog to cat to bird to fish. Caged animals are charged per cage/aquarium. Two pet/cage maximum. Hefty fines for unreported pets. None over 40 pounds. Also have a list of prohibited dogs per my insurance. I do not charge a deposit at this time.

@Dustin Burt Find a deal (a very good one) and ask if they would be interested in doing the flip (and making the profit) while allowing you to ride shotgun. You now just paid them 5 figures for a mentorship without anything out of pocket.