All Forum Posts by: Hilary Hageman

Great ideas, @Joe Semifero! 

We just got back from viewing the property and BOTH units are actually rented out currently, but are in good condition and need no immediate work.  The exterior, however, requires several major and immediate repairs and we are about to begin negotiations with the seller regarding these.

Here's what we need to fix:

-New Roof (old one is really old, but apparently has not begun to leak or sag.)

-Some foundation buckling under a porch - it's not under the actual building, but this is the biggest catch we found.

-New Siding

-New gutters

-Porches repainted

Thanks, @James Wise.  Good point about the cosmetic repairs - they will likely have to be revisited anyway when that tenant leaves.

I will look into Michigan laws regarding rent raises.  Thanks for the tip!

Hey guys,

My husband and I are considering buying an add-value duplex that looks like it needs about $20K worth of work.  It needs all new siding and new floors as well as possibly a new roof and some concrete work on the porch.  Has new interior paint and renovated kitchens and bathrooms.

One of the units is currently occupied.  How do you handle major repairs with live-in tenants?  

How do you go about introducing yourself as the new landlord to the tenants?  I'm almost certain we will be raising the rent: how does this work?  I'm pretty sure they have a month-to-month lease at the moment.

@Patrick Liska, I'm looking at the actual MLS listings on flexmls.com with the sign-in our realtor gave us. Thanks for the tip on looking at previous sales on Zillow. I get kind of frustrated because my non-realtor sign-in on MLS doesn't allow me to see number of days on the market, actual sale price, etc.

We recently made an offer on a home but found out during the inspection that we needed a new furnace and that the second floor would need all new furnace ductwork.

My husband and I are working on getting financing lined up for our first rental property purchase.  We worked so hard to pay off our home and have absolutely no debt.  The idea of "good debt" seems very counter-intuitive to us.  And to be honest, we're a bit scared!

What if we can't get renters? What if the place looks alright but turns into the mansion from The Money Pit? How can we be sure to not pay way too much for a place when we're such newbies? I've been looking on MLS for a few weeks and almost everything comes up with bad numbers for an investment property.

I have a plan laid out for the next one, five, ten and fifteen years which includes acquiring small multi-families and holding them as a landlord.

What are your tips on finding good deals and how do you boost your confidence to step out there and make that first buy?

I love talking local markets!  I'm a pre-investor from Niles looking for a first rental in mid-Berrien County.  Nice to see some local people on BP.  South Bend, Elkhart, and Goshen are definitely the employment-machines of the region.

Anyone on BP in the Michiana / South Bend / Southwest Michigan areas?  What's your take on the local market?  What are growth outlooks?  Do you think we're about to make something of a comeback?  

I see new growth beginning in Elkhart and Goshen, but is Southwest Michigan (Berrien County) going to continue to lose population?  

Whirlpool recently laid off a few hundred employees (never a good sign.)

Thanks @Dante Pirouz, I will stop by Huntington on Monday! Funny you should mention the BRRRR method - I was literally JUST reading about that in Brandon's book on Rental Property Investing.

@Joshua D. Woah, where did you find those terms?  My husband has a credit score of 800 so I'm thinking he'll be able to qualify for the best terms somewhere.

We're planning to buy and hold.  Looking at a duplex in a nicer area as our first rental investment.

Is it foolish to use a Home Equity Line of Credit as a down payment on an investment property?  We have our primary residence payed off and have been approved for a line of credit on the house at 5.25% for 10 years.  The terms of the loan result in a pretty high monthly payment as you can imagine so our cash flow takes a hit there.  It would take us another 2-3 years to save the $20,000 or so we'd need for a down payment.  Any suggestions?