All Forum Posts by: John McCombs

The benefits of financing include the mortgage interest deduction, leveraging, maintaining capital for unexpected expenses, or for additional investments. Interest rates are at historic lows and property values in AZ look like they have nowhere to go but up.

I have two good friends- one a creative Realtor who I consider to be a mentor, and another trusted friend who is an investor looking for a first REI, being a self-described silent partner. My realtor friend has been scouring the MLS for good deals, engaging his one investor, managing the rehab, and marketing the properties. With his current investor, they have done 6 flips together and have made good returns on all 6. My investor friend would be happy with any of those deals. I have set up a first meeting to introduce them this week. I want to ensure that my investor friend "buys right" and understands the potential risks. I'll help provide analysis of the numbers, rehab costs, timelines, protections for both of my friends. So, from the middle, between two friends, what other value should I try to bring to the table? Should I just introduce them and find the comfort-level of my investor friend about my involvement in the flip? What other value can I, as the middle man, bring to the table?

Congratulations! Your management of the quick turnaround earned you at least an extra half month's rent.

Humble highlights from 2012:
HARP 2.0 refinances lowered my payments and terms. (Thank you President Obama!)
Rising rents increased cash flow significantly.
A modification reduced the term on one loan.
Foundation repairs plagued my rentals during the Texas drought.
Carpet, paint, rinse and repeat.

Taking risks is part of the business, and you often have to trust your gut when finding a good match for your rental. But in this case the red flags and lack of good information are pretty clear. Patience is not always easy when you have a vacancy; we just want to get someone moved in. But having a bad tenant can be much worse than having a vacancy. Be patient, the risk looks too high.

Lompoc is a great little town- slow-paced, few opportunities for development and lots of agricultural labor to keep a 6-plex full. We have a 3/2 in Lompoc and have no trouble keeping it leased. The price sounds REALLY good to me, but I wonder about the expenses...they seem high.

Welcome, Christian, from one new member to another. I appreciated right away that you write well, you introduced yourself frankly, and that you are reaching out to get started in real estate. Blessings to you and your professional pursuits!

Thank you all for the warm welcome to BP. I've already learned a lot that has helped start to take some next steps. Cheers!

She is a good tenant and you want her to not only to be safe, but feel safe. You are a great writer, so I would start with a hand-written note, not an email, explaining to her a few options and what you are willing to do to keep her as a tenant. Urban areas have numerous benefits and charm that accompany the rowdy crowd as well. Let her know how you feel when you are at the house and help her connect with a couple of trusted neighbors. If it seems as if the rowdy group doesn't live close by, help her understand the likelihood of the rowdy group ever returning. It wouldn't hurt for her boyfriend to be slower to confront a rowdy crowd from her front door, which may have invited the threat in the first place. And lastly, my advice would be to remember that there may be a facet to the tenant that you don't fully know or understand, but if she is not a good match for the house, it may be better to see if she wants to negotiate an early out. Cheers!

While I do like the idea of incentivizing the reduction of repair call, there could be unintended consequences that don't ultimately save money. For example, A tenant could neglect to tell me about a leak that ends up costing more money to repair water damage. I try to postpone some repairs in order to make best use of my handyman's schedule. Some tenant will expect a mile if you give them an inch, and ultimately could claim that they have delayed telling you about a needed repair therefore they should be given an incentive that was not agreed upon. There may just be too many complicated variables to make this incentive successful.