All Forum Posts by: Janne Zaccagnino

I'd love to make a report saying my next house is done but I fell into a commercial building and we are negotiating to purchase it so the second house is in hold. The first is doing great (cash flow wise). 

This is the next house I plan to build. I would like feedback on the layout (I am the designer). The lot is TINY, but I really want it to have a double garage. That means, no 1/2 bath for guests. 

Will that hurt me with rental? Or do you think the double garage will make up for not having a guest bath (notice there are 2 doors to the master bath so guests don't have to go through the bedroom).

I would love your comments about this design.  

https://www.dropbox.com/s/k9qz43xr2fpj89t/1495%20-%20PC14-006-01.jpg?dl=0

I have designed a new house for my second lot and am getting ready to start the process over again. The first one went so well I am very excited to do it again. If you want to see pics of the first one, visit here:  https://www.dropbox.com/sh/rhl22bd7kkavypt/AAB25H6J1VyeXiGSane6TxSRa?dl=0

@Trent Honea, I got the first of 4 built. It came in at $61 psf to build. I cashed out at 75% of the appraised value leaving only about $5k of my own money in the house. I have a positive cash flow of over $500 per month. 

To get another loan, since I am new to investing I have to let this one cure for 6months and I should be good to go for the next one. I own 4 lots and am developing the plans for them (I design houses for my day job). 

The school district is the hardest part about renting this house. Luckily I found a young professional couple with no kids so maybe they'll be long term tenants....that would be too nice!

In Memphis there was a. Lass action law suit filed against a builder who used that. The award was good for the whole subdivision of the plumbing failed within 25 years of construction but not until it failed. You may want to do some checking to see if there is any help. Possibly call the local home builders association?

I haven't done this in a while, but on the Schedule A, I think, there is a line for "interest paid on a mortgage" for which you have a statement from the bank stating how much you paid (don't know the form numbers, I'm NOT an accountant, although I played one on tv). If you didn't pay interest to a bank, there is another line in that same section. It asked for the name and address of that person or company. At least it used to. BUT, you have heard that the IRS has some "red flags" on tax returns that cause them to take a more in depth look at your return and possibly audit you? THIS is One of those lines. But if you have a private mortgage, it is what it is, just keep really good books.

One suggestion is to use a Post office box. Make them pay with a check or money order. Try can physically hand the envelope to a Postal teller and have it immediately put into your PO Box. But of course, NEVER cash. Try probably also have to put a stamp on it even though it is hand delivered. You can also set up a "sweep" account at many banks. You let your tenant deposit their cash into this account. At a given time each day or on a certain date the money is "swept" out of it and into a different account that you have established that has a different account number. The deposit account constantly has nothing or very little in it. It also is restricted to no check writing privileges. So very little fraud can happen to it. The money is swept out in your schedule and placed into your operating account (an account number available only to you, not your tenant).

Many people today are familiar with "bill pay" at their bank. Your tenant will need your bank's routing number and account number and the tenant sets up a bill pay option with their own bank. If you are worried about them having your bank account, set up a "sweep" account. A sweep of all the money in the account occurres at a particular time daily or on particular days. The money is swept out of the deposit account and placed into a different account of your choice to keep anything fraudulent from happening. I like this route because it makes the tenant do all the work and is free for you (although the sweep account feature may come with a few. If you have lots of properties, this is worth the fee but if you only have a couple, then set up your mobile banking and simply transfer the money yourself. It's quite simple. The best feature is, the funds are good. The bank will not transfer the funds if the funds aren't there.

I would like to know if there are any good Turn-key companies in or near Jefferson City, MO.  I have a sister-in-law who is considering getting into the Real Estate game, but she just moved there and doesn't have her contractors, etc., lined up.  Need some good referalls and probably someone to simply do the work for her on the first project.  

Please contact me if you are a contractor or a Turn-Key company in or near Jefferson City, MO.  Thanks.

Thanks for the advise, keep it coming.  

I TREID to hire a RE Agent who specializes in finding tenants, however, the sign that was supposed to be in my yard by the weekend (2 1/2 weeks ago) still hasn't appeared. It's also not on the MLS yet, so I'm assuming that's a dud. I have another person who can list it on the MLS, so I'll reach out to him tomorrow. That, I believe is a good course of action, and Brian, it makes sense that people in this price point may not look at craigslist, but I wasn't thinking "price point" I was thinking "young people". (All the bedrooms are upstairs and I was thinking this would appeal to young families or professional singles, so that's why I have done so much on-line advertising.

One thing I have discovered is all the agents I have talked to do not want to find you a tenant if they aren't also going to manage the property.  I found the one... who apparently isn't working out.  I don't want a property manager for the long haul, I just need help FINDING people.  I don't even mind doing all the screenings (actually I prefer to do that, but can let it go).  

QUESTION:  Do you think it is wasting my money if I have some cards printed (4 x 6 full color) and buy a mailing list from the post office or some other list source online to do a direct mail to the apartment complexes who are near me (same school district) to see if any of them would rather be in a single family home for LESS than they pay for the apartment? I can get 1000 color cards for $43 plus the postage, and that is pretty cheap!

Tomorrow, first call, RE Agent.  

Thanks for the solid advise.