All Forum Posts by: Steven Maduro

I've tried  heloc denied

Equity lines denied 

Hard money denied 

Quicken almost said yes but my accountant deducts too aggressively 

I think I did a major renovation that year so it showed on paper that i only earned 13k

So on paper I don't make enough to buy a property

Since then I have added another rent to the roll

And no renovations last year so hopefully income will be adequate

My credit score is high enough but according to some lenders 

There are factors that are hurting me 

Debt to income

Among others things 

All very good points and insights 

I think I am like your old pm

It's hard for. Me to make the shift

But about that other piece

Yeah I hear you

But I bought these props around 2011-2012. There wasn't a lot of opm out there but if you had cash you could get deals

I was lucky to buy them cash and now they are worth about four times what I paid for them 

But still I do see the value in leveraging 

I am working on getting financing for a prop but it's hard 

I will probably have to do an owner occupant to get started 

I couldn't last year to save my life 

I've spoken to several bankers and have finally come up with a strategy that I would like to try next year 

Until then raise rents 

 Thanks for your insights 

I don't know but I will say that my neighbor who also is a landlord and rents the house next door to one of my rentals 

He is renting cod 1100

And I am renting for 800

And he says that I am messing up the market 

That is not the first time I heard that

Also on my Decatur prop 

Most houses are renting at about 850-1000

Even section 8 told me that 900 is a good value (currently im renting 700 on that Decatur prop)

My other duplex 

Is 625 

With washer dryers

The house down the block identical is 795

I don't have mortgages so I can still maintain profitability 

But lately I am realizing that I am slowing my growth

So that is one way if you can't do improvements like you want to because you aren't flush with cash that can harm the mRke t 

Not sure how else since comps are so erratic when it comes to rentals 

So I am really sure hat I am  

 Good stuff I like the transparency piece

Both tenants knew going in that the rents were below market and that I would eventually have to raise them

I like your approach 

 Lol thanks Deanna truly I needed that

:-)

Hello bigger pockets family

I have a problem 

My areas rents have increased far past my own mentality In assessing the values

I have properties in Decatur Ga

Zillow and rent ometer say that I should be charging 900-1300 on one property that I am renting for 700

And 900-1100 on a property that I am renting for 800

The props are in pretty good condition

Newly painted interiors some renovations done fair amount of amenities hot tub in the 800 prop

 Washer dryer in one 

And w/d hookups in he other 

I was thinking of going section 8

Although there are several things that scare me about that 

but I am willing to give it a try

All of my five units seem to be well below market by he others are about 100 below market each

So how do I raise the rents?

Get a prop manager to run and manage them since they seem to be able to maximize value?

Evict this crop of tenants and re rent at market rate?

It just seems like increasing rent by 200 on one tenant is just unfair 

But I have to do something 

I am

Losing thousands every year because of this

I am not referring to trying to refrain from watching Disney DVDs

I am talking about taking adopting a different mindset when it comes to investing.

I am a relatively new investor but no longer a rookie

I have been renting properties since 2011

I currently have five tenants and my business is doing alright.

Because I purchased during the bubble bust I ended up getting all cash purchases so I have never had to get a mortgage

This is great for my income and stability picture but bad for having experience borrowing money.

Last year I lost a deal because of this inexperience.

I want to try something new this coming year.  I want to sell one property use the proceeds to find and fix and flip a property

My hope is that in two years I can manage to do enough flips to make six figure profits

I have some experience doing remodels and renovations as I have had to do this to make apartments and houses tenant ready.

I also have experience designing for an upscale look since most of my renovations have been hgtv worthy

My question is how do I lessen that learning curve. Of course I will make errors but how do I minimize the downside and maximize the upside

What folks books videos are recommended to start this journey

TERMINATION CLAUSE. Tenant may, upon 45 days days written notice to Landlord, terminate this lease provided that the Tenant pays a termination charge equal to 2 months rent or the maximum allowable by law, whichever is less. Termination will be effective as of the last day of the calendar month following the end of the 45 days day notice period. Termination charge will be in addition to all rent due up to the termination day.

So here is the clause that is in my lease

Since there is only one month left on the actual lease

I think that is where I came up with the 1.5

I am not trying to rake  anyone over the coals.  I'm just weighing my options and wondered if anyone else sued for early termination

it's a standard Georgia lease

And the clause is a standard Georgia clause

I will see if I can download that section 

And include it here

awesome

I agree I am not looking to hurt a good tenant that runs into a jam

I will make the ideas in this post part of my business model