All Forum Posts by: Hilary Stalder

When is the next real estate investors meet up? Where do you typically meet? I've been meaning to get involved with the local REI community for so long, but haven't had the time. I'm ready now and I can't wait! :)

Hey @Cari Childers! What are your goals? Are you trying to build an empire to replace your W-2 or do you just want a few properties to make life more comfortable/plan for retirement? Are any of your properties hassles or in less desirable areas that you can trade up for more desirable areas/less hassles? I think the answer to those questions may help you to make your next move. From strictly a numbers standpoint:

1. Orlando SFH: Return on Equity = 7% (YOY Cashflow= $700*12=8400/Equity=$300k-$180k=$120,000)

2. St. Cloud Triplex: Return on Equity= 6.5% (YOY Cashflow=$20,400/Equity=$312k)

3. Miami Duplex: Return on Equity= 24% (YOY Cashflow= $120k/Equity= $500k)

All of your properties are making good returns on equity! The question about the St. Cloud Triplex refi would come down to if you think you could find a property with the $125k that would cashflow more than 6.5% that your money in the triplex is currently making? Then it makes sense to do so. 

Also, numbers aside, I agree with @JD Martin. You've clearly made great investments! Maybe it's time to reap some of the benefits. You could always do a long term live in flip, or even a SFH with an ADU to keep down your mortgage costs.

Good luck! Thats amazing work! :) 

Good afternoon BP Community!

We are currently trying to screen a tenant with the RentPrep.com software SmartMove. I've used this on all our other tenants in the past and it's worked great. This tenant said her bank advised against it because they have had issues with breech of data in the past. I'm not sure what to do, at this point she's already started the process and I have verified her credit score, but I like the idea of doing everything through RentPrep because they look for landlord specific items. It looks like we're missing the income verification portion. 

Any ideas on alternate sites? I hate to have her start over, but I think she will have to...

@Karl B. no issues with ongoing maintenance? That would be my biggest concern, I was once a college student myself... LOL

@Shawn McCormick My rental is not in a college student heavy location (it's in Winter Park) that's why I'm not as familiar with the student questions! I apprecaite your feedback and I'll definitely have to check out that group! 

@Mary Smith I wouldn't consider this place a student rental, but I do appreciate the feedback for any future students that are interested. I guess I'm wondering if it's okay to not accept that as part of the criteria since my goal is not really student rental but more professionals? Obviously do not want to break any rules in the process though. 

What do either of you think about credit scores, do both people in the apartment need to meet the min score of 600 or if one person does and the other one doesn't it should be fine? I have a couple where one is in school and the other one is a professional. About to run their credit and thinking this may be something that comes up! 

I really appreciate your responses!

Hey BP community!

We recently listed our 1/2 duplex for rent in Orlando, FL and had an open house. During the open house I got a few questions from candidates that I did not have an answer for, hoping the experience in this community can help!!

1. Income/Credit Qualifications for College Students- I had someone apply who was still in college and therefore did not have credit (minimum credit score 600) NOR were they making enough outside of school to qualify for the income requirements (3x monthly rent. of $1700). Do you allow people to co-sign with their parents even if their parents weren't living in the home? Also, will parents credit score make up for their own? I tend to think in the terms of it's who is living in the house. If they don't meet the requirements listed, they're not approved, but obviously don't want to break any rules!

2. Sales/Commission Based Salary - Second, I had a couple people who asked about income because they were sales/commission based salary. How do you qualify these people? I said if their previous year tax return proved that they made more than 3x the rent they would be fine, but do you require more deposit for these people vs. others? How do you view these positions? 

Any feedback would be greatly appreciated! Thank you!

-Hilary

@Dakota Brown I have a buyer looking to buy at an auction as well. Would love to connect to you if you successfully do this and also anyone else with experience here!

@Hollis Cook I would send them the notice of rent increase along with market comps. Explain to them that they've been paying under market rent for years and maybe raise it just UNDER market rent. No one can complain about still paying under market rent, right? You're a really nice landlord to be thinking about them and not raised it already. I think if you show them that you're not being a "mean" landlord and just being fair they can make the decision to move out or pay the fair rent. Hope that helps! Goodluck!

Investment Info:

Single-family residence buy & hold investment in Winter Park.

Purchase price: $300,000
Cash invested: $65,000

3/2, 1850 SF single-family in A location with A schools in Winter Park, FL 32789. Partnered with in-laws.
Rental Price: $3500/month (we were SHOOK! Only expecting $2500)
Total Renovation Price: $90,000 (over by $10k expected)
Cash Flow/Month: $1200 (Inlaws refinanced loan creating a higher monthly cost, still gave us a healthy cash flow)
COC Return: 13%

Jan 2022 - closing on refi any day to pull out capital. Right now house is worth about $650k. Pay off const loan and reinvest

What made you interested in investing in this type of deal?

Long term wealth building.

How did you find this deal and how did you negotiate it?

My husband's father's friend passed away and his daughter lived out of state. The house was going to disarray (see photos) so he reached out to the daughter to see if she would want to sell. She did so he got the property for an excellent price. My husband's parents partnered with us on this deal and invested $80k. My husband and I put in the sweat equity and renovated the house. We went slightly over budget (10k) so we paid for that.

How did you finance this deal?

Originally seller financing with a balloon payment within 5 years. It has sense been refinanced and we plan to do another refi now that the renovation is complete and our rental price is wayyyyy more than expected.

How did you add value to the deal?

RENOVATIONS! See photos...

What was the outcome?

We rented for WAY more than expected. Rental rates went WAY up from when we started this project to when we ended, PLUS property values went WAYYY up. We are currently working on a refi to pull out some equity and re-invest in our next deal.

Lessons learned? Challenges?

Renovation costs were more than expected. The property was refinanced before we would have refinanced it as well leading to unnecessary closing costs. We will make sure we write out the financing plan next time before moving forward.

We're also splitting the cash flow every month. It would have been better if we could have agreed to a set % return. Maybe the next deal!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Myself! I listed the property on the MLS and leased it. Everything else was off market.

Investment Info:

Single-family residence buy & hold investment in Winter Park.

Purchase price: $300,000
Cash invested: $65,000

3/2, 1850 SF single-family in A location with A schools in Winter Park, FL 32789. Partnered with in-laws on this project.
Rental Price: $3500/month (we were SHOOK! Only expecting $2500)
Total Renovation Price: $90,000 (over by $10k expected)
Cash Flow/Month: $1200 (Inlaws refinanced loan creating a higher monthly cost, still gave us a healthy cash flow)
COC Return: 13%

Jan 2022 - closing on refi any day to pull out capital. Right now house is worth about $650k. Pay off const loan and reinvest

What made you interested in investing in this type of deal?

Long term wealth building.

How did you find this deal and how did you negotiate it?

My husband's father's friend passed away and his daughter lived out of state. The house was going to disarray (see photos) so he reached out to the daughter to see if she would want to sell. She did so he got the property for an excellent price. My husband's parents partnered with us on this deal and invested $80k. My husband and I put in the sweat equity and renovated the house. We went slightly over budget (10k) so we paid for that.

How did you finance this deal?

Originally seller financing with a balloon payment within 5 years. It has sense been refinanced and we plan to do another refi now that the renovation is complete and our rental price is wayyyyy more than expected.

How did you add value to the deal?

RENOVATIONS! See photos...

What was the outcome?

We rented for WAY more than expected. Rental rates went WAY up from when we started this project to when we ended, PLUS property values went WAYYY up. We are currently working on a refi to pull out some equity and re-invest in our next deal.

Lessons learned? Challenges?

Renovation costs were more than expected. The property was refinanced before we would have refinanced it as well leading to unnecessary closing costs. We will make sure we write out the financing plan next time before moving forward.

We're also splitting the cash flow every month. It would have been better if we could have agreed to a set % return. Maybe the next deal!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Myself! I listed the property on the MLS and leased it. Everything else was off market.