All Forum Posts by: Scott Dixon

Hey @Amber Stevens 

I have used a handyman for the last couple of years on anything which comes up at a duplex I have in that area.  If you are still looking just send me a private message and I will send over the contact info.

Thanks,

Scott Dixon

Hey @Tom Shepard 

I stick to 12-month leases for my college rentals unless I am wanting to do some serious rehab on a building/unit then I would consider a 9-month lease leading up to the rehab project.  I don't offer any incentives and I get a good number of graduate students who are continuing their research during the summer months so a 12-month is actually preferred.  I do not allow the lease to be broken if they leave school, but I am willing to work with the student if they bring me an approved sub-leaser to take their place. I do not get the parents to sign as a guarantor but most management companies and landlords do.  Hope this helps.

Best of Luck,

Scott Dixon

Hey @Gabriel Mabry 

Are you looking to simply get a ballpark on the amount of equity for each home in your farming area?  If so, this could probably work about the same as what ListSource does with their Automated Valuation Model (AVM).  I am sure there are numerous other services/people out there doing something similar.  Below is a link to a post which goes over other options other than ListSource:

Other lists besides ListSource

Best of Luck,

Scott Dixon

Hey @Scott Rowsick 

Let's start with your focus or purpose for expanding your REI Network? Here are a couple examples:

1)  Looking for a Mentor - You could provide free labor or your time to an experience investor in exchange for learning the ropes. 

2)  Looking for Deals - You could ensure you have all your ducks in a row and can close quickly.  If you find a serious wholesaler then they are going to expect you can execute quickly on any property which you show interest.

3)  Investor Friendly Realtor - You could send over some referrals to strengthen their business and in return they will want to know how they can help you.

You can have everything in life you want, if you will just help enough other people get what they want. - Zig Ziglar

Best of Luck,

Scott Dixon

Hey @Philip Gould 

Usually a lender will consider your rental income if you have 2 years of tax returns showing that you claimed income from your rental (Schedule E).  From what I have seen in the past they will take 75% of your current monthly rental income to offset repairs, utilities, etc. In addition you will need to show your current leases and any other supporting information that might need to give the loan officer confidence that future rental income is likely.

Best of Luck,

Scott Dixon

Hey @Eric Gutierrez 

I am a little East of Springfield but know of at least one guy who has attended our Meetup from Springfield @Brian Schroeder  Hopefully Brian is around and can help with a recommendation or 2.  

Best of Luck

Scott Dixon

@Greg Johnson 

I have a duplex up in the Peoria area and visit the city about once a month.  Like most cities Peoria has a wide spectrum of property values.  Depending on where they are located they could be considered a liability or an asset.  Good reference is to take a look at a crime map such as the one available on Trulia.  Red/Orange/Yellow will give you a good idea where property values are on the low side.  

Best of Luck

Scott Dixon

Hey @Chance Cooper 

I would say do the numbers and let the numbers lead the way. Plug in the projected rents minus all the expenses (including HOA) into your own spreadsheet or the BP Rental Property Calculator and if the return is what you are shooting for I would say go for it.  I know in my area the HOA usually eats into a good portion of the cashflow and although there might be a few expenses (roof, exterior, landscaping) which are taken care of by the HOA it does not offset the monthly expense.  

Outside the simple numbers try to get your hands on a copy of the bylaws for the HOA prior to signing any deal. This is the other main objection most people have which is the loss of control over your asset. In some cases the HOA can put restrictions on your ability to use the condo as a rental. Also if you could get a 10 year history on the HOA fees you will see if they have held flat or increased over the past decade. Pushing even further if you are serious about the condo try to get the financials for the HOA. How much do they have in reserves, what have the expenses been, does the Condo community have deferred maintenance that could result in a HOA hike in the coming years.

In any case do the homework and you will increase your likelihood of success in this and future investments.

Best of Luck

Scott Dixon

Hey @Jared T. 

In terms of paying myself rent, I preferred to save the money and not pay down principal on the loan. You would be getting a HELOC to free up capital to execute on the next deal, so why not just keep that capital free in your own account so you don't have to take out a HELOC and pay the bank interest.

The live in tenant I had was a good friend so I did not have an official agreement/lease.  This is completely up to you and if you these people are strangers I would absolutely get an agreement in place.  One of the best things about the place I purchase was the 2 master suite setup one on the first floor and one on the second.  This made the setup perfect for 2 professionals. 

Best of Luck,

Scott Dixon

@Westin Hudnall 

I recently completed a sizable rehab on a large 1904 built home (divided into a duplex) and paid the crew hourly.  Looking back I would have to agree with @Peter MacKercher that paying hourly for a sizable project is a bad idea.  I ran into the crew showing up and doing "work" but they lost track of the end goal of completing the project on time and on quality.  Then when they had another project come up they were ready to get everything wrapped up and didn't get me to the finish line like we agreed.  I had little leverage because I wasn't holding the last installment of their payment like I would have been if we had priced on a project basis opposed to a project basis.

Get everything you want completed clearing outline in a statement of work and have them bid the job.  Spend significant time on this and ensure you have thought through everything, inevitably you will leave something out but get as close as you can.  This is not the step to be lazy on and will pay you back for your thoroughness. Then you can go right done the checklist and ensure everything is done or they don't get paid.  

Best of Luck with the project

Scott Dixon