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All Forum Posts by: Mike Tamulevich

Mike Tamulevich has started 2 posts and replied 34 times.

Post: Georgia Lease Agreement/Rent Collection Method

Mike Tamulevich
Posted
  • Specialist
  • Detroit, MI
  • Posts 46
  • Votes 19

@Adam Hooper, congratulations on securing your first LTR! Getting the right lease and rent collection system in place early will save you major headaches down the road.

1️⃣ Lease Agreement Options in Georgia

Best Option: Check with Georgia’s landlord association (Georgia Apartment Association or a local real estate investors group). These organizations provide state-specific lease templates that comply with Georgia laws and are updated regularly.
BiggerPockets Lease Package: If you want a more customizable option, BiggerPockets offers lease templates that can be adapted to your needs.
Attorney-Drafted Leases: If you want a fully customized lease (e.g., with clauses for property-specific rules or maintenance expectations), you can have a local real estate attorney draft one for $200-$500.

💡 Pro Tip: Regardless of where you get your lease, make sure it includes:

  • Rent due date and late fees
  • Maintenance responsibilities (who handles what?)
  • Rules for renewals & terminations
  • Guest & pet policies
  • Handling of security deposits (Georgia has specific laws on this)

2️⃣ Best Rent Collection Methods

While Venmo and Cash App are convenient, they lack key landlord protections, such as automatic late fees and legal documentation in case of disputes. Instead, use a dedicated landlord platform.

🔹 Best Free Option: Baselane – Automates rent collection, allows tenants to set up autopay, applies late fees automatically, and provides free landlord banking with bookkeeping built-in.
🔹 Low-Fee Alternative: Innago – Charges minimal processing fees and allows ACH payments, credit/debit card payments, and tenant screening.
🔹 Other Good Options: Avail (tenant-friendly with maintenance tracking) or Cozy (basic, but works well).

💡 Pro Tip: If your tenant is hesitant about switching from Venmo, start with a hybrid system—allow them to use Venmo for the first couple of months, then transition them to an automated rent platform. Less hassle for both sides.

3️⃣ Long-Term Considerations

Now that you’ve got your first rental, it’s worth thinking about scalability. If you’re planning to add more rentals, a system like Baselane or Stessa will automate not just rent collection, but expense tracking, tax prep, and cash flow monitoring.

You’re on the right track! Let me know if you need help fine-tuning your approach.

Post: Spec home build lending

Mike Tamulevich
Posted
  • Specialist
  • Detroit, MI
  • Posts 46
  • Votes 19

@Rick Soto, congrats on taking the leap into your first spec home build under your own name. Based on the numbers, your deal has solid potential, but let’s break it down.

1️⃣ Evaluating the Financing Terms

Your bank loan structure is fairly standard for a first-time spec builder, but there are a few things to keep in mind:
8% interest is on the higher side but not unusual for a construction loan. If possible, negotiate a fixed rate for the full term rather than an adjustment every 6 months—especially in a rising rate environment.
18-month term gives you some breathing room, but a build like this should ideally take 6-9 months, leaving extra time for selling and closing.
$8,223 in closing costs seems a bit steep. It may include origination fees, inspections, and legal fees, so I’d ask for a breakdown.

Your biggest risk is the 70% loan-to-value (LTV) requirement. If costs rise unexpectedly and your LTV dips below 70%, the bank may require you to bring additional funds to closing. Make sure you have contingency funds available.

2️⃣ Net Profit Margin Analysis

A general rule of thumb for spec homes is to target at least a 20-25% margin before financing costs. Based on your numbers:

  • Expected Sale Price: ~$310K
  • Estimated Build Cost (including land): ~$222K
  • Potential Gross Profit: ~$88K
  • Less Closing Costs & Interest (~$15K+): ~$73K estimated profit

That’s about 23-25% profit, which is solid. However, labor/material overruns and market shifts can quickly eat into that.

💡 To increase profitability:

  • Lock in material costs early
  • Get multiple bids on subcontractor work
  • Pre-sell if possible to reduce holding time

3️⃣ Future Financing Strategy

Once you have a successful spec build under your belt, you can start negotiating better financing terms with banks:
Higher LTV (e.g., 80-85% instead of 70%) so you bring less cash upfront
Lower interest rates (~6-7% is more competitive for repeat builders)
A revolving credit line or builder LOC instead of project-based financing

This first deal is all about proving execution. If you can complete the build on time and sell quickly, you’ll have leverage with banks for better terms next time.

Final Thoughts

Your deal looks strong, but keep an eye on cost overruns and financing flexibility. If possible, negotiate a fixed rate, confirm contingency reserves, and look for ways to cut closing costs.

You’re on the right track—best of luck with your first solo project! Let me know if you’d like to discuss further.

Post: Can you evaluate my plan?

Mike Tamulevich
Posted
  • Specialist
  • Detroit, MI
  • Posts 46
  • Votes 19

@Wyatt Anderson, first off, thank you for your service! Your plan is solid, and it’s clear you’re thinking long-term, which is a huge advantage at 28. A few key thoughts:

1️⃣ Paying Off Your Home

Paying off your home early can provide security and peace of mind, but I’d encourage you to weigh the opportunity cost of tying up your cash. If your mortgage rate is low (below 5-6%), that money might work harder for you in real estate investments or even tax-advantaged accounts. However, if financial security and flexibility are your top priorities, paying off the house isn’t a bad move—it’s just about balancing risk and returns.

2️⃣ Investing in Real Estate

Your plan to invest in multi-family makes a lot of sense. Since you’re eligible for a VA loan, have you considered using it to purchase a 2-4 unit property instead of a single-family home? Living in one unit while renting the others could offset your housing costs significantly. That would allow you to: ✅ Live for free or at a reduced cost
✅ Keep your cash reserves for future investments
✅ Gain landlord experience early
✅ Start building wealth while keeping your risk lower

You’re in St. Louis, which has great rental opportunities, so I’d explore this option before committing to building.

3️⃣ Retirement Accounts (401k & Roth IRA)

Even though your company doesn’t offer a 401(k) match, tax-advantaged savings can still be a smart move. A Roth IRA allows your money to grow tax-free, and keeping that going could benefit you long-term. Some things to consider:
📌 Roth IRA vs. 401(k) – If you want flexibility, a Roth IRA is better since it allows for penalty-free withdrawals of contributions.
📌 Self-Directed IRA – If you’re serious about real estate, you can eventually roll your Roth into a Self-Directed IRA and invest in real estate while keeping tax advantages.

I wouldn’t cash out your existing Roth—just roll it into a new provider like Vanguard or Fidelity so you can keep contributing.

4️⃣ Cash Flow vs. Equity Growth

The fact that your electrician salary will grow to $52/hr in five years is a major asset. That means you can slowly shift from relying on your military pay and use that extra income to fund investments instead of aggressively paying down debt.

✅ Consider buying a rental property sooner while rates are lower.
✅ Focus on cash flow investments rather than just appreciation.
✅ Build emergency reserves for unexpected expenses.

Final Thoughts

You’re not an idiot for not contributing to a 401(k), but diversifying between real estate and tax-advantaged accounts gives you the best of both worlds. The key is flexibility—locking up too much cash in your home too early could limit your ability to invest in high-yield opportunities later.

If you want to discuss St. Louis real estate investing further, I’d be happy to connect. You’ve got a great head start!

Post: Beginner Looking for Guidance in This Space (Affordable Markets, Midwest & South)

Mike Tamulevich
Posted
  • Specialist
  • Detroit, MI
  • Posts 46
  • Votes 19

@Jardin Gwin, great to see you're taking action early! You’re asking the right questions, and while some people will tell you to wait, I’d argue that getting started with a well-planned approach is the best way to learn.

A few insights to help guide you:

Best Markets in the Midwest & South:
You’re on the right track looking at PA and GA, but I’d expand your search to include Cleveland, Columbus, Dayton, Indianapolis, and Birmingham. These markets have better price-to-rent ratios and strong rental demand.

Finding Deals:
For your price range, MLS, investor-friendly agents, and local wholesalers will be your best bet. Also, check land bank programs in Ohio or local auctions—just be sure to factor in any deferred maintenance costs.

Financing Strategies:
With 15-20% down, your best option is a conventional investment loan through a local lender or credit union. Many investors also use portfolio lenders or DSCR loans for better terms. If you’re struggling with financing, look into FHA house hacking for a multi-family property.

Avoiding Beginner Mistakes:
Biggest pitfalls? Underestimating repair costs, ignoring property taxes & insurance, and trusting bad property managers. Always verify numbers, have a CapEx reserve, and hire a reliable PM (not the cheapest one).

Working with Property Managers:
Make sure they pre-screen tenants properly, have a clear eviction process, and communicate well. Ask for references and check online reviews.

Final Thoughts

You’re ahead of the game by researching and networking early. Keep running the numbers conservatively, focus on cash flow first, and don’t rush into a deal just to get started.

Happy to answer any follow-up questions!

Post: Scaling to 12+ Flips Per Year/ Investor Relations

Mike Tamulevich
Posted
  • Specialist
  • Detroit, MI
  • Posts 46
  • Votes 19

@Sam Shikiar, scaling to 12+ flips a year is definitely possible, but you're right that structuring private capital effectively is key.

A lot of flippers make the mistake of chasing money before they have a consistent deal flow. From experience, finding good deals should be the top priority, because once you have solid opportunities with strong margins, the capital becomes much easier to secure.

When it comes to structuring private money, it depends on your investors and their expectations. Some prefer a simple fixed return, where you pay them an agreed interest rate over a set period—this keeps things clean and predictable. Others might want an equity split, where they take a percentage of the profits. A hybrid approach (interest plus a small percentage of upside) can also work if you're dealing with seasoned investors who understand the risks and rewards.

For collateral, most investors will want their loan secured against a specific property. If you’re raising capital at scale, you might explore a portfolio lending model or even a fund, but that adds regulatory complexity. A more common middle ground is using promissory notes and first-position liens on each individual deal. Some flippers offer second-position loans, but that’s a higher risk and harder to pitch to investors.

What makes a flip attractive to private investors? Speed and certainty of execution. Investors want to see that you have clear timelines, a strong contractor network, a defined scope of work, and enough margin to protect against overruns. A deal with a 4-6 month turnaround and a 20-30% projected ROI is more compelling than one with a thinner margin that could drag on for a year.

Scaling up efficiently comes down to team and systems. A project manager becomes invaluable as you take on more projects. Strong vendor relationships and pre-negotiated contractor pricing help keep costs predictable. A CRM to manage investor relations and capital allocation can also make life easier as you juggle multiple projects.

At the end of the day, money follows good deals. If you tighten your acquisition strategy and build out a consistent pipeline, securing capital will be the easy part.

Post: Buying real estate for a child and using FHA loan

Mike Tamulevich
Posted
  • Specialist
  • Detroit, MI
  • Posts 46
  • Votes 19

@Samantha Bartlett, great questions. Yes, you can potentially take out a second FHA loan if you're purchasing a home for your child as a non-occupying co-borrower, but there are specific FHA guidelines that must be met. The key requirement is that your child must live in the property as their primary residence—FHA won’t allow a second FHA loan just for an investment or vacation home.

As for FHA 203(k) loans, they can be a great tool, but they require extra patience. The biggest advantage is that they allow you to roll renovation costs into the mortgage, meaning you can finance both the purchase and the rehab with a low down payment (typically 3.5%). This can be a great way to create instant equity and avoid high-interest renovation loans or credit cards.

That said, the process is more involved. The loan requires FHA-approved contractors, strict project timelines, and extra paperwork. Delays are common, and not all lenders or contractors are experienced with 203(k) loans, which can cause headaches if not managed well. If the home needs major structural work or a complete gut rehab, it can be a great option, but for minor updates, a traditional FHA or conventional loan might be simpler.

If you go this route, working with a lender and contractor who have successfully closed multiple 203(k) loans is key to making the process smooth.

Hope this helps!

Post: Selling Rental property

Mike Tamulevich
Posted
  • Specialist
  • Detroit, MI
  • Posts 46
  • Votes 19

@Kyle Folmar, it sounds like you’re thinking strategically about your next move, which is key for long-term investing success. Selling a high-equity rental to reinvest in a market where you’ll have more control is a valid approach, but there are a few things to consider before pulling the trigger.

First, look at the appreciation potential in Arkansas. While paying off a property can feel great, equity alone doesn’t produce returns. If the market has lower appreciation potential and rent growth is slow, you could be capping your future upside. Instead of paying all cash, would it make sense to leverage some of your equity to buy two properties? That way, you’re spreading risk and maximizing returns.

Second, before selling, consider a 1031 exchange to defer capital gains taxes. If you roll the proceeds into a new rental (or multiple properties), you avoid the immediate tax hit and keep more money working for you. It’s worth running the numbers to see if that makes sense for your situation.

Third, rental income matters, but cash flow isn’t the only factor. If the new property generates lower rents, but the local economy is strong and property values are appreciating, it could still be a solid move. However, if the cash flow hit is significant and growth is slow, it might make sense to explore keeping the Tacoma rental and hiring a property manager instead.

Ultimately, the best move depends on your long-term goals. If building a portfolio is your focus, maintaining leverage while diversifying into appreciating markets can help you scale faster. If simplicity and debt-free ownership are more important, then your plan makes sense. Either way, it’s great that you’re thinking ahead—real estate is a long game, and setting up the right foundation now will pay off in the years to come.

Post: Comp Reviews Assistance!!

Mike Tamulevich
Posted
  • Specialist
  • Detroit, MI
  • Posts 46
  • Votes 19

@David Thornton, welcome to BP! Running comps efficiently is key, especially when you’re balancing a full-time job and trying to scale your investments.

If you're looking for quick, less-than-precise estimates, automated valuation tools like Redfin, Zillow, and Realtor.com can give you a baseline. You can also pull sold data from public county records or MLS-based platforms like PropStream, Privy, or BatchLeads, which are popular among investors.

For fix-and-flips, though, raw sales data only tells part of the story. You need to compare properties with a similar level of rehab, which is where working with a local investor-friendly agent can be a game-changer. They can provide more refined comps, factoring in condition, market trends, and what buyers are actually paying for well-renovated homes.

If speed is the biggest challenge, you might also consider outsourcing comp research to a virtual assistant or using AI-powered tools like HouseCanary or Clear Capital, which provide automated valuation models designed for investors.

Ultimately, the more dialed-in your comps, the better you can predict ARV and protect your margins. Good luck with the sweat equity—sounds like you and your partners are taking the right approach!

Post: How do you mitigate risk in your investments?

Mike Tamulevich
Posted
  • Specialist
  • Detroit, MI
  • Posts 46
  • Votes 19

@Diego Martinez, risk mitigation is all about smart underwriting and having multiple exit strategies. The most successful investors focus on a few key fundamentals before committing to a deal.

First, market fundamentals matter—population growth, employment trends, and rental demand should all point in the right direction. A property in a declining market, no matter how good the deal looks on paper, carries added risk.

Second, cash flow is key. A property should generate positive cash flow after factoring in all expenses, including property management, maintenance reserves, and vacancy. If the numbers don’t work with conservative assumptions, it’s better to pass than to stretch and hope for appreciation.

Third, always consider exit strategies. If a long-term rental isn’t viable, could the property work as a short-term rental or a flip? If the market shifts, is there a way to sell at break-even or better? Having multiple options reduces risk and keeps investors flexible.

Another factor often overlooked is property management. Even the best deals can turn into costly mistakes if they aren’t managed well. Understanding what it takes to operate a rental successfully—whether hands-on or with a management company—can make or break an investment.

At the end of the day, real estate investing is about controlling risk while maximizing upside. The best investors approach every deal with smart underwriting, conservative financing, and adaptable strategies.

Post: Tenant Rent Abatement Request

Mike Tamulevich
Posted
  • Specialist
  • Detroit, MI
  • Posts 46
  • Votes 19

@Andi Quinn, you handled this situation extremely well, and based on what you described, a two-week rent abatement seems excessive. In most cases, rent abatement applies when a unit is completely uninhabitable, forcing tenants to find alternative housing on their own. You provided a solution immediately, covered their hotel stay, and ensured the unit maintained a livable temperature. That goes above and beyond standard landlord obligations.

Since you’ve already offered to cover their additional utility costs, I’d stick with that as a fair resolution. If they continue to push for the full two weeks, you could offer a goodwill credit for a smaller amount, but only if you feel it’s necessary to maintain goodwill. Otherwise, you’re well within reason to decline.

If this situation ever comes up again, a lease clause outlining what happens in case of temporary loss of essential services could help set expectations in advance. At Marketplace Homes, we’ve seen that clear lease language can help avoid these kinds of gray areas.