All Forum Posts by: Ginny Watson

I could use a referral for a decent property manager for a house on the southeast side of Tucson by the airplane graveyard. I would like a company that has regular dealings in the 85730 area code if possible.

@Steve B. Just to clarify. Of my $6700 expense estimate, $4500 is debt service, taxes, and insurance. $870 (10% of income) for vacancy allowance
$870 (10% of income) for maintenance allowance
$435 (5% of income) for Cap X
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$2200 are expense allowances that would probably not be incurred in the first year. That is just the worse case scenario. It is realistic that at least half of that would go to profit. Thanks again.

So, what am I missing? Doesn't this deal beat the 1% rule at 1.25%? My $6700 expense figure allows for vacancy, maintenance and Cap X savings. I quite possibly would not incur the vacancy, maintenance, or Cap X expense in the first year. The house is in really great shape (no deferred maintenance). What I like about this deal is that my sister would be my "boots on the ground" in an out of state deal. I know the house and feel confident I could rent it.

Your points about working with family are well taken. I don't deny that it has to entered into cautiously. 

If I get this house for $55K or $50K does it make sense? Which I would only do the estate couldn't sell it for more.

@Steve B and @George P. If I forgo this whole deal, how should I invest my $15K inheritance in and around the Portland metro area? Would love find such a deal. Thanks for your thoughts.

 and Capital Expenditures are for big things like roofs and furnaces.

 Thanks for the info.

 It didn't sound right to me either. Are they expensive to renew each year?

It is in Dowagiac. I have been told that Michigan does not recognize LLC's. Is that true? If yes, how do folks protect their personal assets in Michigan.

Thanks Nathan. I do own a duplex rental in the Portland OR metro area and it is really expensive here. I have learned a ton with my first property and learning more all the time. This MI house has better cash flow than my rental here. So, this one by comparison seems like a good deal. Maybe I need to wait and see what the house will bear in the market before I finalize my offer price. Maybe I am rushing because I am too eager to lease to some of the great applicants I have interviewed,

Thanks for taking a look at the deal. I have estimated my expenses on the high side for vacancy, maintenance, and cap x so we could do better if we don't have turnover. From applicants I have talked to, seems like we could get folks in there who want to stay a while. How did you arrive at 15% yield figure, I calculated 10%. Right and I we have not included depreciation tax advantages,

I have such bad manners.  I never thanked you guys for weighing in on my deal. Thanks for your input. We decided not to pursue this deal because our estate lawyer thinks it would be disadvantagous to keep the estate open or to do this deal outside the estate.