Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Try Pro Features for Free
Start your 7 day free trial. Pick markets, find deals, analyze and manage properties.
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Jaron Walling

Jaron Walling has started 40 posts and replied 4130 times.

Post: Scaling up your Rental Portfolio

Jaron Walling
Posted
  • Rental Property Investor
  • Indianapolis, IN
  • Posts 4,182
  • Votes 3,854

@Amier Tutie You're in a great position! There's plenty of ways to pull equity but most cost you money. It depends on your long term goals with REI. You didn't say anything about selling but have you thought about a 1031 exchange or selling a dud property (if you have one) to capitalize on the next opportunity? Very few investors hold every property forever.

If you don't sell the better option is DSCR loans. The rates are great and it's based on the performance of the property. Not you personally. You can close a DSCR loan quick and seasoning is <3 months for most lenders I see.

I like the saying "just because you can doesn't mean you should". We sold a SFH two years ago with a 3% fixed rate. The future capex and potential for never ending "repairs" as a rental wasn't worth the cash-flow. We used the equity for a DP and bought a way newer property.

Think about your equity position vs. cash-flow. Maybe you choose to sell something and buy a duplex or tri? That can to get you to 10 doors way faster than buying SFH. That's basically where my wife and I are right now. We're aiming for duplexes, or flips for some quick money.

Post: Window replacement worth doing?

Jaron Walling
Posted
  • Rental Property Investor
  • Indianapolis, IN
  • Posts 4,182
  • Votes 3,854

If the wood around the windows starts rotting you'll have a bigger repair bill. I'd get a few quotes and get them replaced ASAP. It's going to protect the property if you plan to hold this one for a long time. 

Post: Tariff Impact on Real Estate Trend

Jaron Walling
Posted
  • Rental Property Investor
  • Indianapolis, IN
  • Posts 4,182
  • Votes 3,854

@Chris Seveney Unemployment went to up to 4.2% also. Data just came out today. This administration is definitely playing with fire, and doesn't care about tariff history. 

@Shan Dey "Delay big investments or development projects" - I could see this happening for number of projects in our market which nobody wants. They just announced a huge renovation project for our downtown mall. These reuse multi-family projects are so important. 

    Post: Does Trump new taxes affects the Real Estate?

    Jaron Walling
    Posted
    • Rental Property Investor
    • Indianapolis, IN
    • Posts 4,182
    • Votes 3,854

    "On the flip side, some analysts believe that the economic uncertainty from the tariffs could lead to lower mortgage rates, which might offset some of the increased costs." - This could be true but unfortunately list prices will go up, offsetting any savings from a buyers prospective. Most of the data is saying we're still millions of units short on housing. Until we build our way out or millions of people choose or get forced to list (recession/job loses) nothing changes. The current US administration doesn't care about the latter. 

    I'd plan for increased costs on everything. China just announces a 34% tariff on all US imported goods so... that's not very helpful. Other countries may do the same. This administration is repeating mistakes from the 1930s only this time global trade is even more influential.

    Post: Seeking advice on best maximizing my rental properties

    Jaron Walling
    Posted
    • Rental Property Investor
    • Indianapolis, IN
    • Posts 4,182
    • Votes 3,854

    @James Hamling "because 10% appreciation on $350k is a hell of a lot more than 10% on $180k. It's about double." - We sold another property (would have cash-flowed minimal) and used the funds to buy our current primary which effectively doubled the real estate prices and chance for appreciation (stronger location). 

     @Nathan Gesner We're on the side of the fence to not sell due to everything you said. Fun question to ask because sometimes I see blunt answers. This market is brutal for finding distressed opportunities. Selling what we have and not having a deal in the pipeline is probably stupid so I appreciate the advice. 

    Post: Seeking advice on best maximizing my rental properties

    Jaron Walling
    Posted
    • Rental Property Investor
    • Indianapolis, IN
    • Posts 4,182
    • Votes 3,854

    @James Hamling Unbelievable response here. Wasn't planning to check the forums today but glad I did. We're trying to apply this wisdom to our tiny portfolio. In this market we need all the help we can get. 

    "There is a "sweet-spot" of performance that is on average yr 3-7. On average about 5yrs of happy-days.

    Question: I bought a property in 2018 (BRRRR deal), remodeled it, and it cash-flows roughly $300 per month. House built in 1930. Almost everything has been replaced or upgraded including HVAC. We owe $81k, 3.5% rate, and market value is $170-190K.

    If the tenants moved out would you sell?  

    Post: Inherited tenant giving me issues on the move out

    Jaron Walling
    Posted
    • Rental Property Investor
    • Indianapolis, IN
    • Posts 4,182
    • Votes 3,854
    Quote from @George Martin:
    Quote from @Jaron Walling:

    You took the nice guy path and it didn't work out. It happens man. Don't beat yourself up over it. Naively, based on what you described, I would have tried that too. I would have increased rent regardless. Not $800 per month but at least $100-200 per month. No pressure was added from the new landlord so little effort has been given from the tenant to find a new place. 

    "Should I be serving her with a 30 day notice to vacate?" - Absolutely get this posted on the door tomorrow. Take a picture of it posted for your records. Start gathering everything including that fake letter for a property she was supposedly moving into. 

    Have you offered any cash for keys yet? Sometimes that's the trick but plan for the worse. Following because we don't have experience with inherited tenants. I'm other investors will chime in. Best of luck man. 


     Thank you! I forgot to mention that I did up the rent by $100 on January 1st. A small, but doable increment for her, but still nowhere near where it should be. Great advice, I plan on posting that letter today.

     That's all you can do now. No more nice guy tactics. Remind her that nobody wins if an eviction happens. Her credit can even take a hit. I'd offer her one months rent, cash for keys, in writing, and out by ____ date. It's not a negotiation. 

    She's been there 9 years with no rent increases. There's only so many excuses. 

    Post: Inherited tenant giving me issues on the move out

    Jaron Walling
    Posted
    • Rental Property Investor
    • Indianapolis, IN
    • Posts 4,182
    • Votes 3,854

    You took the nice guy path and it didn't work out. It happens man. Don't beat yourself up. Naively, based on what you described, I would have tried that too. I would have at least increased rent, not $800, but at least $100-200 per month. No pressure was added from the new landlord so little effort has been given from the tenant to find a new place. 

    "Should I be serving her with a 30 day notice to vacate?" - Absolutely get this posted on the door tomorrow. Take a picture of the notice for your records. Start gathering everything including leases, notices, text messages, and that letter for a property she was supposedly moving into. 

    Have you offered cash for keys yet? Sometimes that's the trick but plan for the worse. Following because we don't have experience with inherited tenants. I'm other investors will chime in. Best of luck man. 

    Post: Room Rentals, House Hacking

    Jaron Walling
    Posted
    • Rental Property Investor
    • Indianapolis, IN
    • Posts 4,182
    • Votes 3,854

    @Peter Bendorf Why would you rent when you could be living for free? 

    Unless you have better arrangements, family, or can't stand living next to tenants anymore you should be living in one of your units banking $$$ until you save for the next deal. 

    "Looking to onboard a property manager and get myself out of the day-to-day operations." - If you're making good money flying I'd start this immediately. Read and research questions to ask PM companies. They take roughly 8-12% of monthly rent. Meet them in person, establish a relationship, and find the value they claim to provide. 

    Let them manage a few units and self manage a few until you trust there process. It's not on you anymore. You get basically no say in who moves into your properties. It's a different mindset. You can focus on more important things. 

    Post: Seeking advice on best maximizing my rental properties

    Jaron Walling
    Posted
    • Rental Property Investor
    • Indianapolis, IN
    • Posts 4,182
    • Votes 3,854

    Those $900 per month mortgage payments are wild. Talk about the good ole' days. 

    Assuming the OP is retired they have so many options. Just depends on their goals, tax strategy (1031 vs. paying Uncle Sam), and if family will inherit some properties.