All Forum Posts by: Chris Masons

I don't think domestic disputes can qualify for "illegal activity" From the info given I don't think you have legal grounds to evict at this point. Although if there is a restraining order in place that may throw a monkey wrench into the situation.

Perhaps ask the Father to leave and see his reaction? IS his name on the lease as well? Are the couple willing to pay the full rent minus the Father?

Good luck,

Chris 

Eric,

Unless there was a leak or contamination the EPA would not be involved and there would not be a need for a NFA  letter. If there was a cleanup done you would than need a NFA letter.

Get owners to close any open permits and close

Chris

@Maugno M.

I would have the opposite view that you do.. If I was going to keep this long term and rent I would be replacing as much of the galvanized steel that I could while the opportunity is there - so later on you won't have to deal with it. As mentioned that steel pipe builds up scale and corrodes from inside and the diameter of the inside hole will continue to shrink over time. You will at some point be forced to at the least snake it which can be challenging sometimes or at worst replace it.

If it is a flip I wouldn't be as concerned and just replace from risers up or whatever currently needs to be done. Nobody is going to OOOOH and AHHHH about the fact that inside the wall plumbing has been replaced as it is not visible and long as it is currently working as it should I would not put money here but put it elsewhere to attract buyers to get property sold ASAP

Just my .02 cents..

Chris

Maugo,

Replacing all plumbing with Pex VS. just replacing from risers up will almost have no bearing on appraised value. If the difference in price isn't astronomical I'd try to replace as much as you can with all the pipes exposed.

You will thank yourself later when you don't have to open a wall to replace galvanized piping that is full of scale and clogged.

Thx,

Chris

8 to 10% is tough, especially if you want truly passive income. Real Estate requires some work....

Vanguard has a great REIT index fund that will probably return around ~ 5 to 7% annually including dividends and capital appreciation. You may want to diversify that 500k and put 1/4 of it into a REIT index fund, a 1/4 into a nice utility index fund (both are meant to create and generate passive income with high dividends) another 1/4 in some high quality blue chip stocks like Pepsi, AT&T, Exxon Mobil and Disney - all which pay dividends as well, and lastly put the final 1/4 into a real multi family property that hopefully you can help your Mom manage.

The goal is to live off the income these investments produce and NOT have to use the capital. Hopefully the multi family will appreciate a few % yearly and cash on cash return will be somewhere above 10%

This is by no means any firm financial advice ( I am not an certified financial planner) just some thoughts and opinions based on the very little info you have given.

good luck,

Chris

I just had an instance where a tenant moved out and apparently they did not turn off the valve all the way to the water line to fridge......

luckily all damage was in basement. I happened to have a high deductible of 2500 of which tenant paid all of it.

I would say at minimum hold tenant responsible for at least half if not all of your deductible if you need to file a claim.

thx,

Chris

Can one of you guys explain what a gravity furnace is?

Not sure I have heard this term before....

Thx,

Chris

When are they suppose to move in? I would call them and say something to the effect of " I just realized I never took a deposit from you. Please send one by XYZ date otherewise I will need to void lease"

good luck,

Chris

While cash flow is very thin, if you can go 12 months without any major repairs and you are self managing that could get you ~ 2k as a cushion. In year 2 with a 25 dollar increase that will get you another ~ 2300.

If you have good tenants who take care of your place  this is entirely possible. Roof is your biggest consumable item and hopefully you have at least 10 years or more left on it?

Another thing you can do to help yourself out is make the tenant responsible for the firs 100.00 of repairs. This will take care of the small nuisance items that may arise and allow you to bank more of that positive cash flow.

If you are close to the property and comfortable self managing I would keep doing what you are doing rather than realize a 20k loss.

Chris

You need to owner occupy for FHA loan. Keep in mind this does not have to be forever..

GL,

Chris