All Forum Posts by: Fred Cannon

@Jackie Parham I love 1/1. No families, not much upkeep, I am a 1/1 condo investor. Check our travel nurse websites, Great renters, always pay, but it must be fully furnished with all utilities for that niche the only issue is high turnover but I I usually am

Booked 6-9 months out and turn away 10-15 inquires a month. There is a site called Furnished Finders that I use. Good luck. I think you found a jewel.

@Gil Ganz can you really find people who are willing to pay a 10% mortgage. If so I would be very hesitate to do business with them. Their credit and income should be a high risk

If they are willing to pay that interest rate. People invest in real estate for different reasons and have different goals. My goal is retirement income because I am older (already retired). I can't chase the get rich game of the late night hawkers or the 100 door landlords. I look for a steady income with a somewhat secure investment. I don't like mortgages so I pay cash. I

Know the better play is 20-30% down but I'm not wanting to be the middle man with a bank on one side, a tenant on the other side and me the monkey in the middle. Plus i don't want 100 doors or even 50 doors. I just want to make a minimum 800 cash, a month for every 100k I invest (just my goal) and provide a nice home or condo for people to live in. Seems to me your business model would be very complicated and high risk with the type of people you would attract. As they say on Shark Tank.

" l'm out"

@Greg Koszkul. I usually upgrade the flooring, the bath, and the kitchen when I buy a new property. The flooring if it is carpet needs to go. It can be reasonably replaced with luxury vinyl. Looks great and is easy to take care of. The bath normally needs to be updated. If you want higher rent have a nice bath. The kitchen should have nice appliances, lighting, cabinets and countertops. A major expense but nothing says home like a nice kitchen. These are long term investments, do them up front and you will get better rent and better tenants.

@Bruno Mauro it may not be as bad as you describe. My guess is that you are getting some mortgage pay down. Although that is not direct income it is like stashing money into the bank. Also you are getting appreciation, usually around 3% per year, plus property depreciation on your taxes. I would stay the course. Must be a condo with the high HOA fees. I invest in condos and don't have any issues with HOA fees because they really cut down on the maintenance cost of ownership. My only issue with condos is the high rate turn over with tenants. Eventually you will get one that will stay a few years. I have a couple of SFH's as well. A lot more maintenance and big ticket repairs, and lawn Service. Enjoy your tax deductions and mortgage pay down. In a couple of years it will be a great investment with positive cash flow.

@Brian Hood. That's a great question and something I am pondering right now

I have 6 properties (condos) that have a 100 K value and have no mortgage each rent for $1050 per month and my cash out each month @ $600

Per unit after all expenses my average cost per unit is around 50 k Overall doing pretty good and mortgage free. My thoughts is to churn one at a time by taking $75k mortgage, buying another property with 25-30k down. My cash out then drops to @ 200 dollars per door but I recoup $300 per door in mortgage buy down plus gain additional tax right offs and appreciation. However, I get less cash monthly and double my time. I am going to try one to see how much it really cost. It it works I can churn one a year and pocket @ 50k tax free for 6 years But do I want to manage 12 properties I must add that I do have two additional SFH but the time factor on homes is 3 times as much as a one bedroom condo I would not reinvest in SFH because I don't have the time for all the upkeep.

@Anthony Then. Real estate and stocks are apples and oranges. I have invested in stocks thru work for a couple of reasons. 1. Tax Free 2. Company match So if you have a 401k it is foolish not to max that out before you invest in anything else. Anyone who tells you different is full

of crap. My other investments are in real estate. I know nothing about the stock market and don't really care to learn. That is truly passive to me. I have a loan provision with my 401k and over the years I have used that along with general saving to purchase real estate. If you are young you can create a very good real estate income by this method over many years. It's not get rich quick but with any investment strategy it's the compounding of gains that make you prosper. If you are disciplined and set goals you could retire at a young age. I have always enjoyed my work so a retirement age has never been a goal But retirement income is my goal and real estate is the best way to achieve that.

@Katy Brenneman. Yes to finding ways to increase the rent. A couple of things I do.

1. Update kitchen, bath, and flooring (get rid of carpet) Not all at once but in-between rentals. Not only do you get more rent but your property appreciates, tax write off, less vacancy

2. Instead of pet deposit I charge pet rent. I try to stay away from the word deposit unless it's for the initial security deposit. Depending on the pet I charge anywhere from 15-25 per month

3. I charge a $200 upfront cleaning fee. That why I don't have to withhold deposit money when they move. In the past Most tenants just pack up and vacuum the floor and say they cleaned the house. Now I am covered and have one less headache

4 I have lowered my security deposit and have more upfront fees prior to move in. You have to return the deposit anyway, but fees you keep. I have an admin fee that covers background check and advertising cost. I just call it admin fee and it's $100 plus addition $75 for each person over 18.

5. I no longer accept checks, only take electronic funds like Zelle or Venmo The checks in the mail routine cost you money and creates bad landlord/tenant relationships. With ETF the money is on time and never had a transfer bounce for NSF.

Those are my tips Hope you find one or two you like.

@Eric Bilderback I just had a check bounce I'm August and waiting on check for September. Getting ready to start the eviction process if rent is not received this week. I don't have a mortgage on this property and this tenant has a full time job. Don't think I will have an issue with eviction. I would not evict if he were unemployed because I can absorb the loss and would not evict a tenant due to a COVID related issue. However this is not the case with this guy. Too many good tenants looking for housing in Florida.

@Anthony Wick It's always best to have a clause in your lease that states the penalty for early out in my lease I have a 45 day notification and as part of that notification I am allowed to show the property with a 48 hour notice. Other than retaining the security deposit there's not much else you can do unless you go to court

@Anthony Newbold you lost me when you said they were 6 months late before you went to evict them.