All Forum Posts by: James Baker

Hello BP,

Any insight and opinions would be great but I think this might be a depends answer.  We recently bought our first duplex and it cashflows a little under $500 a month.  My wife and I are trying to decide if we should pay the cashflow towards the mortgage of the duplex or to save the money and reinvest down the road to purchase another duplex.  I appreciate the time of any responses and look forward to hearing from the BP community.

Theresa,  Great way of looking at it.  This is my first deal.  The numbers are tight.  It is looking like an overhead of $1330 that includes everything, P&I, T&I.  At $875, that puts me at $1750 a month in rental income.  After cap. ex. and all of the other costs associated with the duplex, I will be cash flowing around $200.  That is why I am wanting to raise the rent to the market value of $875 sooner than later or I will not be cash flowing at all.   All of the day dreaming is a reality now and it is somewhat nerve wracking.  It seems like I should be cash flowing more than $200 for a duplex.  What are you guys' thoughts now that I put some numbers in for context?

Great input.  They currently pay $765 and market is between $875 and $900 and that is what we will be asking.  So, they will not be happy about that and understandably so.  I will definitely take your advice into consideration.  Thank you.

I am closing on a duplex coming in June.  One of the units' leases is up on July 1st.  I know nothing about the current tenant at this time because we are in the beginning phase of purchasing.  Listening to the podcasts and reading some forums,  I get the feeling that it is better to just start fresh and not to inherit tenants.  What do you subject matter experts think?  Renew or let go?   Any info is greatly appreciated.  Thanks in advance.

THANK YOU all for the insight. 

 It is pretty clear the cons far out weigh the pros on this one.  The Grand Rapids market is pretty solid right now, so I won't be selling for a couple of more years.  If I don't sell I will definitely fill in the pool in order to rent out.  

Your willingness to offer advice  to others, without self benefit, is why BP is so helpful and useful.  

Thanks again.

Hello BP

We will be renting out our house in the future here in the west Michigan area.  It has a pool that is relatively shallow; 4' at the deep end and 3' at the shallow end.  I am not sure if it was meant for a lap pool or for kids.   I have been weighing the options and am not sure what route to take.  First and foremost, is the safety of the tenants, especially children.   I also would want to protect myself and my investment as much as possible if something did happen.  I would go through great lengthen's to ensure the pool is safe in every aspect possible.  I would also have to see if the cash flow would increase enough to offset the cons of renting with a pool.  Any input from the BP community would be greatly appreciated.  

Thanks in advance.

Thank you for the info.

Hello Bp. Does anyone know if the mortgage interest deduction works towards w-2 taxes or is it geared more towards business owners?

@Jacqueline Coombs @Gary Fraser-Lee @Jay Hinrichs Thank you guys!!!!!

@Conor McInerney Thank you so much for contacting that office for me.  Much appreciated!!!!!