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All Forum Posts by: Account Closed

Account Closed has started 23 posts and replied 927 times.

Post: Troubles with couple on a lease

Account ClosedPosted
  • Rental Property Investor
  • Central, fl
  • Posts 950
  • Votes 821

yes don’t get involved at all with their personal issue.  Your re about 2 months behind evicting them.  They didn’t pay rent so file for eviction.  

Don’t make this complicated.  Going forward just think like this below. 

Ask yourself this question. 

Are they paying rent? If the answer is yes do nothing. If the answer is no then evict them.  

This is a business.  I don’t care about my tenants personal life issues or whatever.  I care about the rent being paid.  (I already provide a safe and quality home for a reasonable price.). 

Hopefully it works out for you.  

Post: Is buying a home inside of a TSP (thrift savings plan) possible?

Account ClosedPosted
  • Rental Property Investor
  • Central, fl
  • Posts 950
  • Votes 821
Originally posted by @Anthony Gayden:
Originally posted by @Darius Tracy:
I have been talking with my mother who has been working civil service for the government for over 20 years. On one of the podcasts I remember hearing how u could buy properties in a self directed IRA and was wondering if anyone had any experience doing so in a TSP (thrift savings plan) as this is her savings vehicle for her employment. Any advice is greatly appreciated. Thank you

As far as I know it is not possible to buy real estate within the TSP. You also are very limited in the investments you can make, which are solely the funds that they offer (C, G, F, I, S, and lifecycle). However, I have used TSP loans on three occasions to purchase real estate. Twice using a general purpose loan and once a residential loan. You will not own these properties within your TSP, but it can give you the seed money for a down payment.

Keep in mind that a general purpose loan must be repaid in a maximum of 5 years, so if you borrow the maximum $50,000, you will be paying quite a bit per month on that loan. The good news is that you are simply repaying yourself. In my situation since I am repaying over $400 every 2 weeks on my TSP loan, I dropped my bi-weekly contribution down to 5% (the minimum if you want 100% of the employer match). When the loan is paid off I will resume maxing out my contributions ($19,000 per year for 2019).

Now the awesome thing is using the TSP residential loan. I have used this one time. Let me tell you how it worked. I bought a 4 unit property in Tucson, AZ for $152,000 using an FHA loan and 3.5% down payment. I was going to live in one unit and rent the other three out, otherwise known as house hacking. A few months prior I had bought my first investment property, another 4-plex, and I used most of my money on that deal, so I used the TSP residential loan for the down payment on this deal.

The down payment was $5320, I wrapped some of the closing costs into the loan, so I only had to come up with $6000. I used the TSP residential loan, which allowed me to repay that loan over 15 years at around 2% interest. This made the loan payments very low. I lived there for a year and then moved out and rented the unit where I used to live. I basically bought that property with no money out of pocket. Oh and it cash flowed very well. I lived for free while there, plus I still made a few hundred every month.

This was probably the best example of how to maximize your TSP while on active duty or in the civil service. Now I'm wishing I had done this while I was in.

Post: Is buying a home inside of a TSP (thrift savings plan) possible?

Account ClosedPosted
  • Rental Property Investor
  • Central, fl
  • Posts 950
  • Votes 821
Originally posted by @Darius Tracy:
@Dmitriy Fomichenko the possibility of of rolling it over into a self directed IRA would definitely be desirable for her. Thank you for your time and response.

Typically the ability to roll your TSP into a self directed IRA would only be after she stopped working as a civil servant.

Post: How beneficial is the VA for investment purposes?

Account ClosedPosted
  • Rental Property Investor
  • Central, fl
  • Posts 950
  • Votes 821

I wouldn't say that a VA Lon allows for investing. What it allows for is a No PMI loan with zero out of pocket for a owner occupied home up to a 4 unit multi family.

In reality it is a great way to enter the investing with little to no money down. Make sure if your long term plan is to keep it as a rental property that it will make a good rental from the get go.  

In a perfect world (also just my opinion) it would be an amazing way to get a 4 plex and live in it for the required time all the while ensuring that at the 2/3 year point you have 20% equity in it so you can refinance to a traditional loan and then take your VA loan and do it again and again and again. Or until your spouse says no more. :)

Good luck

Post: Possible mismanagement of my out of state properties

Account ClosedPosted
  • Rental Property Investor
  • Central, fl
  • Posts 950
  • Votes 821
Originally posted by @Rodney B Gibson:
Hello all,

I have properties out of state. For a while now I have started to notice the stories do not match the bill. In part, I can blame myself for this but now that I am a bit more committed to RE I have started to ask more questions and things do not seem right. Let me give you a quick story. Be mindful I am writing from my cellphone.

On Wednesday this week, I noticed for 2 months now I had not gotten paid for one of my homes. I immediately called my property manager, no response. 2 hours later again, 2 hours later again, no response. I called her office and they put me through and she picked up. Now, let me take you back about a month.

Last her and I spoke she mentioned to me that the current tenant had complained about the carpet not smelling well and it probably needed to be changed. This was going to be about $2000. I asked her about charging the last tenants and she responded with that she didn't see anything wrong. The previous tenants left. I then told her to give me the quotes of different carpet installers and we will speak about the best solution. Well, I guess she took it upon herself to make that desicion. Then, somehow she decided to take the entire payment at once without consulting me. In addition, she starts to speak to me about the ac needed to be fixed. Back to present.

She gave me a story on what had happened and I did my best to remind her that we agreed on her consulting me prior to make any decisions. She said to me that I only had to pay out of pocket for $1000 dollars because she had $1000, from dog fees. Now quick math, I earlier mentioned that I had not gotten paid for 2 months, 1000 a month. I don't think I have to continue here, you all get it. THE MATH ISN'T RIGHT. She told me she would put everything together and call me back within the hour. 2 days later I finally get in contact with her assistant.

Her assistant is telling me how the carpet was changed and that I was going to receive a check for the rest. Now keep in mind your ac needed repairs, but that's when I reminded her my ac had been fixed for the same issues 3 years ago, so it should be under warranty. If any, I should just had to maybe pay for the labor. She went back into the records and BOOM! It was there. I told her to send me all receipts for my own records and 24hrs later I am still waiting.

Side not,

Somehow she was able to mention the tenant still had to bring the rest of the check, and it just made me wonder and ask. Wait, he hasn't brought the entire check yet? Well, she said, if tenants don't make it by the 5th we charge them a late fee of ten percent. Another question, (which should be a no brainer but I still asked) who should this late fee go to? She responded, well it should go to you. Oh ok, I responded. In all the years under this property manager I have never received a single late fee charge, or damage to my home charge, or any charge for that matter.

In part is my fault, I should be more aware of "my investments" but I am glad I see things a bit more clear now. Lesson learnt right?

Good lesson for everyone.  

First, you should have a iron clad signed agreement with your property manager for everything.  IE pet fees and deposits or non-refundable anything.  

It isn’t that I think they shouldn’t make money, but my business makes me money.  It’s their job to make money with theirs not my job to prop them up.  

I’d already have dumped them as a management company.  

Post: average ARV in Winter Garden

Account ClosedPosted
  • Rental Property Investor
  • Central, fl
  • Posts 950
  • Votes 821
Originally posted by @Jason Malabute:

In your guys' experience, what is the average ARV of a SFH and Duplex in Winter Garden? Thank you

Well I enjoy your enthusiasm, you are literally asking people to do your work for you.  Come out here, grab a beer walk around downtown and all those locations you have been posting about and asking questions.  

Bottom line you can make money anywhere given the right situation.

Find a property, buy a property, rent a property.  

Good luck...

Post: Background checks for renters

Account ClosedPosted
  • Rental Property Investor
  • Central, fl
  • Posts 950
  • Votes 821
Originally posted by @Autumn Alexander:

Hello, I'm looking for a company/system that does background checks for renters.  Does anyone have any recommendations? Thanks!

I use transAmerica  mysmartmove. 

 I use the application fee that I charge each adult to cover the cost of the background check here in Florida.  I just charge 40 dollars which is a break even.  I don’t need to make money on applicants I make money renting a unit to a quality tenant.  

I also do some googling and check out Facebook or anything where people tend to let their guard down. I just want to ensure what and who they say they are is what I will be getting.   

Best of luck to you.  

Post: Airbnb fights back against Boston!

Account ClosedPosted
  • Rental Property Investor
  • Central, fl
  • Posts 950
  • Votes 821
Originally posted by @John Michael:
@Charlie MacPherson "You cannot rightfully force a property owner to give up his private property rights without proper compensation. Doing so is inherently unjust" Amen brother!

It's like a game of hot potato and more then likely situation is the STR crowd overpaid for their property and once the rule of law catches up to them they will be caught holding the bag of an upside down or zero equity home with only a negative cash flowing long term rental situation to maintain them for decades to dig themselves out.

The STR rights end where my rights begin. I love the debate. And Boston will win this fight which I've seen in the past. Every investment strategy has risk, welcome to the beginning of the end.

Post: Holiday gift for tenants

Account ClosedPosted
  • Rental Property Investor
  • Central, fl
  • Posts 950
  • Votes 821

Has anyone  incentivized their tenants going into the new year of pay your rent on or before the first all year and get entered into a XxX dollar gift card drawing?   Just thinking of a win win.  

Post: Airbnb fights back against Boston!

Account ClosedPosted
  • Rental Property Investor
  • Central, fl
  • Posts 950
  • Votes 821
Originally posted by @Brad Sicoli:
@Eric C.

@Eric C.

@Eric C.

Wow, where do I begin?

1) we absolutely can compare Airbnb’s to hotels. If we are talking about what’s best for locals then hell yes strs are way Way better than hotels. There is a cheap motel a half mile away from me and the cops are always there. I am (and Airbnb/vrbo in general) is way better at limiting crime and benefiting the citizens of my city than hotels.

2) are my “assumptions” wrong. I have a vacation rental and you don’t. You are telling me that my experiences are assumptions? I brushed my teeth this morning, is that an assumption? Based on me cleaning my own property for the first 6 months, seeing what ppl leave and based on what guests tell me, yes I assume they spend money even more locally than if they stayed at a hotel. Don’t tell me my experiences are assumptions. I “assume” you are not an expert on this matter but you are still in favor of regulating me!

3) the question is not about legality, it’s about what’s the law should be. The law should be: what’s best for the people? I am illustrating that strs are good for all the parties involved including a third party that is often disregarded in these discussions: the cleaners and other professionals I employ.

4) again, you clearly do not own a str and yes, you made up that number. They #1 thing guests search by are by review and some guests can be very fickle. They’ve even gotten mad at me for problems they cause. There is an element of customer service that you need to be careful of. You may be able to get by renting a 4 star rating hotel, but with strs, customers don’t know what to expect so they are trusting reviews a lot more. 80%? Try 98%.

5) it seems that you are conceding my point but you are saying it still doesn’t matter because we need to regulate every industry. I pay my taxes (more reliably than my neighbors). Regulating me out of business will hurt the community.

By the way: my roi, or success, or failure is none of your business if I’m not hurting anybody. I took a sober risk when investing and yes, part of that risk is gov regulation. That remains my #1 biggest risk but it is based on people fearing a new industry. That’s it: fear. People always fear new industries abd successful market dIsruptors and look to the gov to regulate their fears away. Strs are not destroying your community they are enriching it. Live and let live!

1). Cool if we compare hotels to a Airbnb then you yourself are stating it doesn’t belong in a residential neighborhood, glad we agree on that point.  

2). If you have to use the word assume a lot... did you also previously clean hotel rooms to have good comparison to spout your mouth off like an expert.  

3). STR's are not good for all people involved, it's good for YOU, but as a community as a whole it is horrible. I use facts and logic with my asserations. What do you use? You ROI that you won't disclose... that's more to my point that you are part of the problem and not a problem solver.

4). Again I don't own one, but I do own a home and I live an in area that has STR's and seen first hand how they negatively effect the locals.

5). I'm not conceding anything. I am using logic and facts. Your using emotion and ramblings. Your STR is nothing more an unregulated hotel that has a different flavor to it. Once you have to start paying your fair share of taxes for each booking you will have to join the world of reality.

Again not knocking STR, but I am saying that short term gain for you is nothing more then long term loss for the community. If you want to do STR rentals that's your right, for now, but eventually like everything the government will come and get their seven pounds of flesh.

Yes you are hurting people, you just turn a blind eye to it because it’s easier then seeing things from the other persons point of view.  I see your POV but I can also see the big picture and how without regulation you are hurting the community at your own personal gain.