All Forum Posts by: Dustin Reynolds

Thanks, Billy, do you use a standard lease and just have everyone on one lease or individual leases?  

Bump

Hello,

It might not be surprise that eastern Ohio has an abundance of traveling gas and oil workers.  I recently purchased a duplex and it’s taken me almost 3 months to rehab it.  In the process I’ve managed to get the attention of 3 (Possibly 4) construction workers.  

I’ve talked to one person who has done this before... I guess I’m looking for some guidance on the lease.  Assuming I’ll end up speaking to an attorney.

Here are my thoughts and what I’ve done:

- I’d like to cover the utilities up to the the last 12 month average (tenants have verbally agreed to this) $465 per tenant it was originally $450, parking is going to be an issue, so I worked a deal out with business near by to use his parking lot for a small fee.

- charge per bed and per person

- I furnished the apartment 

- this is all for the downstairs apartment
- I should probably see an attorney for a parking lease, the land owner is concerned he will be liable if there are ever any damages to one of my tenants cars.

- Do other landlords provide cable/internet too?  It’s not a utility....soo....?

- three separate leases or one with all the names?

Thank you for your time, I look forward to some guidance. 

I’m also considering selling it if anyone want to invest in the gas and oil.  As of right now I’m at $1,995 per month

@Jacob Chapman I am in the same boat, anxious to see what the pro’s have to say. I’ve been rehabbing mine for a few weeks now, almost ready to list.

Hello,

I went a different way to seal the deal!  I had initially intended to use an unsecured loan at 6%.  

Long story short, I put one of my vehicles up as collateral, $10,000 @ 2.4%.  I wasn’t crazy about doing it tris way until the rates went up to 8.5-10.5% for unsecured.  Besides, my Toyota Rav 4 is 10yrs old, 160,000 miles on it.  Retail was like 9k-ish but my credit was so good they allowed a 10k-5yr loan.  No payments for 90 days... 

Roof and window replacements estimate came back at $1,600.  The entire roof didn’t need replaced, just a couple sections and some shingles.  

And the best part.....

The owner accepted $16,000

There’s a ton of cleaning for the upstairs apartment and I have to replace the refrigerator.  I think, fixing the roof, replacing flooring, windows and cleaning I should be able to rent the downstairs unit out, no problem.

Maybe  another $3-4K upstairs and it’ll be ready to rent.  

I’m pretty sure I will be under $25k all in for my first duplex.  I’m hoping that after I make the place nice and clean I can get maybe $1,300 between the two units.  It was renting for $1,100 in poor condition.

I have to say with all the stress in planning and being patient.  I think it was worth it, I’m pretty happy with the deal.

I guess it was still a long story...?

Hey Jared,

A couple I’ve looked at are in Steubenville.  The ones you’re looking at on realtor.com... idk I’m not experienced enough to be the guy to tell you it’s a waste of time.  But one of the triplex’s I had a scheduled walk thru, the agent cancelled it the night before.  Turns out it was broken into the night before, there are a lot of drugs in some areas....  I think it’s all up to what you’re willing to put up with, while being a remote property manager.  I’m not going to buy anything inner city, I’m not from the inner city, I don’t know enough about it and I don’t have enough free time to deal with all the police reports, broken doors and windows.  

It’s the nature of the business, but I’m choosing to invest elsewhere.  You can pick stuff up cheap and make money for sure.  It’s just not for me.  I know, drugs are everywhere, but the ones I’ve seen on realtor.com are in some rough areas.

Thanks for your reply.

So do I take my $8,000 and put it toward this duplex and finish paying for it with the unsecured loan?  I’m not a huge fan of “large” payments eating the rent.  I guess I look at it as paying the 8k so I can see a better monthly return... rather than cash in hand paying a larger payment...

If I were to finance the whole deal with an unsecured loan( not sure if the bank would finance $28,000 unsecured, never asked.)  my payments would be $600-650.    But I’d have my $8,000 cash I saved, for a down payment/emergency fund... I suppose I could use that for another deal that the bank would finance with a conventional mortgage. 

I get it, pull the trigger and make a deal!  I welcome the wisdom and appreciate everything everyone is contributing to the conversation. 

 Thank you for explaining that.  I looked at it again today with the owner, I think they’ll take less than 22k.  I got the vibe they just don’t want to deal with the repairs.

 $18,000, 6%, 5yr = 350 a month, taxes and insurance will be over $400.  So, slightly under $500 all in.

I would need an unsecured loan of $14,000 to own the property. From my own personal income and or SFH income I would need to put about $4-5,000 into shaping it up.

If I took an unsecured loan for $18,000 I’m guessing my payments for 5 years would be around $500. Not including taxes and insurance.