All Forum Posts by: Gabe G.

who cares about pot?

There are credit unions that will give you 10 conventional, true 30 year mortgages fixed.

You should max those out first.

No one would go to commercial adjustable in this environment, unless they are maxed out.

I am at that 10 point now and considering commericial, because that's my only option. But if I could get more 30 year fixes, I would continue doing that.

@Mark Douglas  This question is different for everybody.

Personally, I asked this question on this board about 3 years ago when I started.

I am still working my day job.

Basically the answer when you can quit, is when you have enough rental income, including ALL expenses, to cover your living expenses + some . For the lifestyle you want.

Depending on where you live and you wants and needs. This can be as little as 1500 a month, or as much as 10+k a month.

I earn a modest living at my w2 job here in the midwest, and after taxes and 401k etc. 

I make more from my rentals, than I do my job. But that's really not an apple's to apple's comparison.

But at the early stages of your business in my opinion, you should not be thinking about quitting your day job right now.

I am sure you will get opinions on both sides of this question.

However, get as many 30 yr fixed mortgages as you can get. Eventually you won't be able to get anymore, that are a full 30 year AM.  It provides the most flexibility and cash flow for emergencies.

This question always depends on how much they are under market and how good of a tenant they are.

If you have a good tenant and we are only talking about 50 or 100 a month under market.

I would choose to keep the rent the same. The tenant is taking care of the house and paying on time, no need to rock the boat.  As we know, not all tenants are good tenants.

Even with a good tenant, if we start talking about 200-300 or more under market. Then I would probably stagger rent increases to get somewhat close to market.

If they are a bad tenant, not paying on time, etc.  Then raise to market, or even above market for the headache of dealing with them. If they end up leaving, who cares. They couldn't fulfill their end of the lease anyways. 

In Indianapolis. I find most 3/2's are too expensive to make good rentals. I have 3/2 , that I bought for 82k and I struggle to get 1k in a good area.

I find the sweet spot is 3/1 here in Indy. You get the extra bedroom, but not the extra bath. I think the extra bed is more important than the extra bath.

You can get some 3/1's in ok areas. for 50-60k. That rent for 800+

@Dolores Waldron

I am not totally familiar with that area. However. 3 bedroom doubles in "ok" areas. Should command 600-700 a month. The fact rents are 475 should be a red flag. You can't even get a decent 1 bedroom apartment in indy for 475.

I would keep looking.

@Charles Wiegert  You will get many opinions on this subject

It's really a two fold question.

1. How much of gross rents, can be expected to be repairs  and how much as a percentage for capex(things that need replaced)

2.  Do you really need to set aside money for these expenses if you have access to credit?

What I am currently doing is estimating 10 percent for repairs(I think this might be high) and 10 percent for capex(I believe this might be low, over time). I am currently at 10 mortgages and maxed out. However on number 2. I did not set aside any money. The reason being is I saved it and plowed it back into the next down payment to grow as fast as possible.

I believe repairs and capex, will probably be around 15-20 percent total of gross. How you split that is your call. However, when growing I recommend plowing that money into down payments, as long as you have access to credit to cover emergencies.

This happens a lot. Unfortunately, tenants aren't known for their timeliness or communication, or concern for other people's time. So instead of canceling, they just won't show.

But the question is, to me if someone sets an appointment with me, and then doesn't show, or waits until the last minute to cancel. I have just prescreened a bad tenant and I can move on to someone that shows better interpersonal skills, and concern for other people's time.

But the best way is to just give an hour window. So if you have to drive to your unit, worst case scenario you are out an hour, instead of 3.

Classic tenant behavior.

Hmm. It depends, if she is good, keeps the place clean and pays on time and hasn't been much troubleshoot. I would just eat it, and let her know best practices on handling the toilet:)

If she has been a problem, I would charge her.