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All Forum Posts by: Fred Cannon

Fred Cannon has started 20 posts and replied 262 times.

Post: I have an itch to tap into a HELOC that I cannot scratch.

Fred CannonPosted
  • Rental Property Investor
  • St Augustine, FL
  • Posts 264
  • Votes 279

Not sure I would risk my home by getting a heloc.  Also heloc interest is no longer deductible.  I certainly would not risk a family members home.  

Post: Tax right off for self managing my rental properties .

Fred CannonPosted
  • Rental Property Investor
  • St Augustine, FL
  • Posts 264
  • Votes 279

I have both Condo's and SFH's as investments. I tend to like condo's better because they require less maintenance. The HOA fees can reduce cash flow but SFH's require a lot more maintenance such as lawn care, painting, roof repairs, etc. Anyone else have this mix of investment properties.

Post: Feedback for first investment property

Fred CannonPosted
  • Rental Property Investor
  • St Augustine, FL
  • Posts 264
  • Votes 279

The good news is you have cash flow with minimum maintenance. Plus the tenant will pay your mortgage down so that is like putting money in the bank. Not the best deal if you are looking for a high cash flow but certainly a good deal for you.  Congrats.  In 5 years it will be a great deal.  Have patience in RE.  The turtle wins this race. 

Post: Southeast Georgia investing

Fred CannonPosted
  • Rental Property Investor
  • St Augustine, FL
  • Posts 264
  • Votes 279

You could check out Zillow or Craig’s list to see if any properties are listed or if you see any rentals give the owner a call and tour the home.   

Post: Pay It Off vs Keep the Loan

Fred CannonPosted
  • Rental Property Investor
  • St Augustine, FL
  • Posts 264
  • Votes 279

I have in the past paid cash for my rentals. I now think that was a mistake. I have good income from The seven units I have but will fall short of my goal but I still can buy after I retire next year.  The big thing is the cash flow and with rates as low as They have been it would have been better to use a mortgage and let the tenants pay for the houses and concentrate on cash flow and equity.  My plan now is to buy with mortgage rent and rehab along the way and sell in five years. Turning over one mortgaged house per year. I am starting that process now.  The big plus is that I won’t get too bored in retirement lol. 

Post: Turnkey or BRRRR with 200k?

Fred CannonPosted
  • Rental Property Investor
  • St Augustine, FL
  • Posts 264
  • Votes 279

I agree with Jay. You will not make much money if you carry a mortgage. You could probably buy a couple of 1 bedroom condos for cash. That is my niche. Very little maintenance (just between the walls) usually very good amenities for the tenant You have an HOA fee but if you compare that to the upkeep of a house with a yard the HOA fee is a pretty good deal. I make about 10–15% annually and that doesn't include appreciation and tax deductions. Pick a good complex that has good management onsite.

Post: I'm having trouble finding a tenant for my rental

Fred CannonPosted
  • Rental Property Investor
  • St Augustine, FL
  • Posts 264
  • Votes 279

I would not rent your property either if I had to look at the junk pile next door. Go to Lowes or Home Depot and contract to install a fence.  You can get 12-18 months no interest most likely. Its a tax deduction and it does away with one more objection I would also hire a lawn service guy and add that cost into the rent.  I have never had a tenant take proper care of a lawn or a pool. After about three tenants of lawn care neglect i started with lawn service Now everyone is happy and my lawn always looks great. It’s $130 a month in my area (Florida). A tenant is not going to do a good job if it’s in the 90’s and the humidity is just as high

Post: Should I renew a habitually late tenant that pays the late fee?

Fred CannonPosted
  • Rental Property Investor
  • St Augustine, FL
  • Posts 264
  • Votes 279

If your tenant keeps you place clean is not a pain in the butt and always pays consider yourself a blessed landlord. I have gone thru a few evictions, had tenants not take care of the property etc and if my only complaint with a tenant was a day or two late I would certainly not want to have her leave and take a chance on the next tenant being a nightmare.  Certainly month to month is s good option.  Go that route and be happy each time you collect a late fee. 

Post: How much cash should I have for repairs when buying foreclosures?

Fred CannonPosted
  • Rental Property Investor
  • St Augustine, FL
  • Posts 264
  • Votes 279

if it is long term hold I would not want to spend more than 15%.  Three places I look to upgrade flooring, kitchen, and bath.  Also I try to do some type of upgrade between tenants.  If you want good tenants don’t be a slum lord.  Keep your property looking good inside and out   One thing I have found out with single family homes is to provide lawn service, don’t allow your tenant the option of taking care of the lawn   Curb appeal and good neighboring requires the outside of the home be kept up.   

Post: Cash out refi to buy rental property?

Fred CannonPosted
  • Rental Property Investor
  • St Augustine, FL
  • Posts 264
  • Votes 279

To refinance a house is quite expensive with all the fees the new 30 year mortgage and most likely a higher interest rate than you are currently paying.  To me it’s close to being a con game especially if you don’t have a lot of equity.  

Buying real estate for investment purposes is almost an addiction to some people.  Just like a junkie robbing someone to get that next high investors will rob from themselves to make that next purchase.  Don’t go crazy trying to figure out how to make that next purchase.  There will be a good deal out there for you if you save up the money to put down. Not only that but you will sleep better at night.  I’m just a small investor with six property rentals ( only one with a mortgage.   I have three properties that will be empty by the end of July.  Even though I don’t loose much out of pocket money when they are empty it’s stressful.