All Forum Posts by: Doug Davis

 Ok, I see what you are saying.  If I do rent by the room, that may complicate things with people going in and out more often and needing cleaning more often.   Still wondering if it is worth it, but at least trying to get all the info I can.

Ok, thanks.  By not cleaning, do you mean clean it yourself (I'm guessing you don't mean not cleaning anything ever).  I live out of state.

Also, I've heard about the pitfalls of renting as three separate rooms.  However, looking at the numbers, seems like the only strategy that has any chance of working here.    Probably means more cleaning (of each room instead of whole house).

I put possible vacancy as 3 days a month.  Not sure if that's realistic or not.

With self managed, reducing CapEx, I'm getting 4.11% 5 year annualized return, and starting off with $142 cashflow/month. Can't tell if that's worth it, although with today's rates, might just be the status quo.

I was trying to analyze a home for medium term rental.  Doesn't look like it will work well, however I'm more interested in if I am missing something. 

https://www.biggerpockets.com/analysis/rentals/249c5d76-1eba...

This is my first time analyzing a medium term rental. As I started entering expenses, it occurred to me that there were more expenses than I thought. Is there anything that you can think of that I may be overlooking in my analysis? I entered a higher CapEx than usual. I thought about renting as three separate rooms, although I've heard that this may lead to more issues, so may not do that.

10% Property manager (although, could self manage from out of state)

Electric, internet, water, garbage (with water bill)

vacant maybe 3 days a month due to how people schedule

a few fixes necessary

furniture/dishes etc.

lawn

insurance

taxes

cleaning costs

loan/loan closing costs

no HOA for this one

Say I were to buy a three bedroom three bath place as the first place I buy to rent out.

I'm wondering how well it would work to rent it by the room.  In my imagination, it seems like it could turn into a nightmare with people not getting along with each other.   Obviously the pro is more money.

Any thing you can think of that would make things better for the tenants?

Any features that people may be looking for when renting by the room?

Does everyone have their own internet/cable connection?

Are water/electricity shared bills?  Or are they included in the rent?

Any resources that I can use to learn more about how the best way to do this?

Thanks,
Doug

What's a property manager you have worked with in Tallahassee, FL, and what was your experience (good or bad)?

Thanks.

So, it looks like they sent me the wrong info via email, even though I made it clear I was looking for a loan for an investment property. Going through the application process, it showed these terms:

$300,000 loan:

25% down minimum
Rate 7%
APR 7.15
Points: 0.25%
Closing Fees: $6,130.50
Payment: $1,496.93

Not sure what the disconnect was.

Thanks for the advice.  I will try to get all of the information they can provide up front and look at all the possible options.

So far, I emailed about eight credit unions in the area.  For most I was either not eligible for or they didn't have a product for me.

For this loan, it would be a house in Georgia, long term or mid term (no short-term).  

I'm no expert when it comes to loans.  Below is what I got from my credit union.  Is there any thing below you would ask more questions about or be suspicious of?  Seems like relatively good terms to me, but I don't know if there's something I'm missing.

Our rate today for the 30-year fixed is 6.125%. With a credit score over 700 and 10% down (20% for jumbo), you also qualify for our 15/15 adjustable-rate mortgage. This is a 30-year loan with a fixed rate for the first 15 years and will adjust based on market rates on year 16. The rate today for the 15/15 ARM is 5.125%.

1. Since we are a credit union, we are exempt from intangible taxes. An intangible recording tax is a borrower closing cost calculated at the rate of $1.50 per each $500.00. For example, with a purchase price of $500,000, you will save $1,500 in closing costs.
2. We also pay about $200 in other fees including credit report fee, flood certification and real estate tracking fee.
3. Our origination fee is 1% of the loan amount and it is capped at $5,000.

ok, thanks.

I was thinking about buying something near Atlanta, maybe house hacking.

I was Googling and came across Stone Mountain Ga, Ordinance 2017-07 which says:

3. Occupancy by guest(s) shall not exceed fourteen (14) consecutive days during any ninety (90) day period.

https://cms4files1.revize.com/stonemountain/Ordinance%202017...

I'm trying to make sure I understand what is legal and what is not.  Is this a law actually on the books?  Is this only when renting out the entire house?  What about if renting out a finished basement for a month at a time?  Is that not legal?  Anyone here that understands this legal document or has experience with leasing in Stone Mountain, GA?

 Ok thanks!