All Forum Posts by: Ibrahim Yamini

This question has been asked before, but the thread is over 3 years old.  As technology keeps changing, more improved options are becoming available.

BiggerPockets.com has provided a list of companies to use regarding this topic below.

https://www.biggerpockets.com/...

Out of all of those listed, which ones do you use or think is the best for a landlord starting out?

Thank you, I already had a plan in place to make sure rent is paid between the 1st and 5th of each month.  Anything paid on the 6th I or after will be an automatic $50 late fee charged.  This will train them to make paying rent a priority and not an afterthought.  I won’t accept “I forgot” as an excuse.  Plus having them will help train me in dealing with future tenants 

Hello all!  

My wife and I have been taking care of my nephews since they were Freshmen and Sophomores in high school.  When the oldest one graduated last year, he stayed with us because he wasn’t sure what he wanted to do with his life yet.  I have no problem with that at all, not everyone is ready to leave right away. He got a job and I charged him a small sum a month for rent.

I also said I didn’t mind them staying with us for a few extra years while we teach them fiscal responsibility.  Unfortunately, that knowledge isn’t taught in schools. I was adamant about them never EVER getting student loans and not to borrow money except for buying houses. I always ask them; “When should you buy something?”  Their answer is “When we have the money for it.”  EXACTLY, is my response.  I told them they can use credit cards, but only if they have the money in their bank accounts and to pay them off right away.  They both have jobs now and I asked them if they could reasonably save $800-$1000 a month for a year so they can buy a car of their own around $8K - $10K out right without making payments.  They said they could.  I already knew the answer because they make more than enough to save that and still be comfortable.  There’s no way they shouldn’t, the rent is extremely low and they get free everything else living with us.  I told them; “you’re debt free at 18 and 19 years old and you’re already ahead of most Americans.”  I do want them to go to school, but I told them to take classes when they can afford them.  Community College is often overlooked.

 Now that you have a bit of background please comment or let me know of any issues or steps I should take next.

First, my wife and Nephews both know I plan to buy an investment property at the end of next year as I craft my business plan.  In order to have a little bit of fiscal security, I’ll need roughly 6 months worth of rent available in the business account for vacancies. In order to achieve that by January of ‘22, I told my nephews that I have to raise their rent from $200 to $300 a month.  My wife thinks that I’m taking advantage them.  I personally think it’s more than reasonable.  That should give me around $9.6K at the end of next year.  Is this morally wrong?   Thoughts?

Second, I was wondering if it would be beneficial for them to be put on an Actual Lease but I don’t know where to go from there.  Once I activate my small company into a functioning business, will the lease I have for them on file be a reliable record to use for their credit history after a year?  If so, how do I update their lease info on for their credit report?  I want to make sure I do everything in my power to make sure they break the continuing cycle of fiscal irresponsibility and poor credit histories that has plagued their family.  If you have any answers or books to reference, please let me know.

I couldn't find if this question was already asked. The BRRRR book did show up though but I haven't read it yet.

I currently have a home loan that was $245K and It’s now at $222K.  I‘m looking to do a straight refinance just to get the new interest rate and not take any equity out.

My plan is to get an investment property around the end of 2021 as I save up and refine my business plan.  When I’m finally ready to pull the trigger, will having a refinance on my record be unappealing to lenders?

@Wes Waggoner After reading that book I mentioned in my last post  I heard a lot of nightmare scenarios they had go through in dealing with terrible tenants.  They did mention customer service.  I don’t know if you’ve dealt with tenants before or have landlording experience but they did say that tenants are the life blood of your financial freedom and to take care of them if they’re taking care of you.  They didn’t use those exact words but I like it.  Good luck on your purchase, I hope it goes well!

I’m not an experienced investor but when I read your post my first thought was why is the seller distressed if there’s positive cash flow? Are the tenants paying rent on time or is something else going on?  If the property has a nice cash flow, great!   I’m no legal expert, but I’m pretty sure you’re legally bound to the previous lease for the tenants until it expires.  Asking them to leave temporarily could have unforeseen legal implications.  As a tenant, I would be pretty pissed if a new owner came along and asked me to leave my home while they do rehabs.  And no, I’m not going to stay and move my furniture off to the side while I stay and you do rehabs either. It’s likely, you’ll need them to sign a legal form of some kind to agree on that.  You’re likely more experienced than me in this field, but one thing I’ve learned is that when you rush things, get scared, or get greedy, you make mistakes.  I’m not saying you’re one of those things, just using them as an example.  If you haven’t already, I would definitely research the tenants to make sure they’ve been paying their rent on time and do background checks, I wouldn’t rely on just the seller’s word. Sorry for the long rant, I literally just got done reading this book called “Rental Properties and how to Manage Them” so I’m probably on a bit of a high horse.  I have a lot more questions but I don’t want this post to be too long.

This reminds me of a house I saw on eBay.  The seller said the house had a $15K tax lien and it required about $15K in rehab costs, which likely Meant it will be $25K in rehab costs.  The houses in the area sold from 40 to 50K.  Meaning, that even if you got the house for free, it could be a terrible investment if everything doesn’t go smoothly, and it likely won’t.  It might be good for a millionaire that has to take a loss for tax purposes but the house was essentially worthless, at least in my eyes.

I keep hearing about the BRRRR method and stories like this makes me not interested in that at all. I know it's more expensive, but I would rather buy houses that don't need to be rehabbed so I can rent them out almost immediately. Am I in the minority?

Sorry for what you went through, but you already know, failure is a great teacher and you didn't even fail.  You came out on top, with a headaches included as a bonus, lol.  Congrats!

It depends on when.  When COVID first hit, Carnavil cruise stock went from $50 a share to $8 a share.  I actually put a few hundred dollars on them and their stock rose.  Since this was a company I'm familiar with, I knew that their stock wouldn't falter.  I would put half of it on carnival at that time and invest the rest in 3 to 4 properties in my area.

Hello everyone!  This is my first time using biggerpockets.com's website and I've found the information on YouTube extremely helpful.

I will hit 20 years in the Air Force in January but I've extended until June of 2021 to complete a deployment.  

I currently have a remaining balance on my primary house of $222K which we pay $1515 a month. I recently found out that I have enough entitlement with my current VA loan to buy a investment property up to $265K. I would likely use $125K or less

My wife and I talked about it and agreed to buy an investment property when I come back next year.  At that time, I'll have the option to extend my military service for 24 months, or to re-enlist for 4-6 years.  

Should I extend my military service so I have a steady income coming in, or should I just live on my retirement and my wife's income, which will likely be less than 50% of what I'm making now to focus on investing full time?

Thank you for any input