All Forum Posts by: Jaron Walling

@Gina Nocero If I'm in your shoes I'm putting the late notice on the door yesterday, and processing with the eviction process spelled out in your lease. Contact a local attorney ASAP. I'd also save all communication you have had with this tenant. Get the lease agreement out (assuming she signed it) and prepare everything for the attorney. 

DO NOT EXCEPT partial rent payments. DO NOT drag this out. Everything you do should have written deadlines with consequences if no action is taken. If the lack of communication continues, lies, story telling, etc. get prepared for an eviction. 

PS; The only other solution is cash-for-keys. A lot of people find success with it, but it's very situational. If you entertain the idea get everything in writing and again set hard deadlines for when the tenant will be moved out. Half now, half when you drop the keys. This solution can be a win-win for both parties. Evictions cost money, it's a LOSE-LOSE for both parties. Best of luck. 

@Jorge Vazquez LTR, BRRRR, or starter home flip opportunities for the win this year.

Indiana has big events, conferences, and growth, but it's not a top destination city in my opinion. The strategy is sexy and trendy but with a family and 9-5 jobs buying a STR hasn't crossed our minds. If we did it would be OOS in a mountain town with more tourism.

It's a valid idea further south (prettier area of the state), nice lake houses, or close to one of the big state parks, but in those locations the purchase prices are easily $400-800k. If vacation demand drops or gets inconsistent you're in trouble. 

@Eric Fernando If you don't have much experience with renovations I would work backwards. You need to determine your budget, prioritize repairs, and spend accordingly. 

You're talking about installing a cast iron tub. Literally nobody installs them and if they do it's incredibly expensive. It makes no sense for a rental. 

"Which Tub brands and shower panels are good? or which ones should I avoid?" - Any experienced contactor should advise you on which products make sense. Stick with the name brands like Delta, or Sterling. Get a standard size 60 x 32-in and make sure the walls get waterproofed correctly. Tile is more expensive but holds up for years. Again, depends on your SOW and budget. 

Keep your cabinets white or gray for rental properties. Fun/trendy colors just cause painting headaches in the future. 

LVP flooring comes in many different styles and quality. You need 100% water proof flooring in my opinion. Find a product that states that on the box. If you want a stronger wear layer budget more $$$ for flooring. It's more expensive, but it will last much longer than the cheap stuff (usually $1.30-1.99 range). Luxury flooring will be $3.99 or more per sqft. Contactors can find deals on flooring but it won't be the highest quality, in my opinion. Shop around, buy what you want, and pay someone to install it. 

Other than in bedrooms most people are getting away from carpet. It's nice for a flip because it keeps noise levels down, but for rentals we avoid it. 

@Greg Spencer Exactly man. Unless you have more renovation experience I'd forget the HELOC. Besides, it's not costing you any money. I'd look for a value-add, house-hack, or live-flip type opportunity, and sell the current primary. You're making sacrifices and stepping up the ladder. It's not a dream home purchase.

Before my wife and I got married I was constantly doing live-in flips. Instead of renting my old house (3% rate, would have good CF) we sold it and took advantage of everything mentioned above. It was a fun stepping stone. 

@Greg Spencer The best use for the HELOC is to renovate something, add value, and refinance out of the HELOC. You could use it out of spite (DP or something) since you already paid closing costs to open it, but at 8.5% that really hurts.

Based on the massive appreciation during the post COVID boom, and primary resident capital gains exclusion I'd sell. This property served you well and appreciated faster than anytime in recent history. Take the win. Leveraging the HELOC can be useful but you need to buy right. If you buy wrong (at market value) you're robbing Peter to pay Paul when you sell the current primary closing/paying off the HELOC. It just eats into what you receive at closing. Buy the next property below market value so you can house-hack, live-in flip, or do a combination if the wife to agrees with it. With family that's tricky, but it forces the needle in your direction. 

@Jonathan Price It doesn't seem like you have much experience. If the house is paid off you should connect with a local real estate agent to determine it's value. You're not making any decisions, just looking for the market value in current or slightly remodeled condition. I'd also connect a tax professional, and talk about taxes. Your personal finances will play into your decision to sell, rent it, or live there for a few years. Living for free, collecting good cash-flow, or paying a cheap mortgage (assuming a low) is a huge blessing. 

Hard truth; forget about the $600k property. Maximize what you have, budget, live below your needs, and save on taxes when you decide to sell. Create a 2 year runway because it reads like you need that amount of time. 

If you inherited the property from a deceased family member selling is one of the best options due to the "stepped-up basis" saving on taxes. Again, speak with a local professional. 

Like @Kyle Vogeler mentioned we rent a dumpster depending on the space to park it. We DIY the clean out, and/or coordinate with our contractors to help out. A dumpster rental is $470 in our market. We also demo for any renovation. We place any metal next to the road because it's valuable for metal scrapers. Same thing for old appliances. It's gone in a matter of minutes because people hustle for that stuff. 

@Jonathan Price You have to live in the house for 2 out of the last 5 years, and it doesn't need to be continuous. Utilities in your name, mail, and bills going there, etc. 

Like mentioned above unless have significate equity, or a big value add occurred the gains will be quite low anyways. Its not a big deal if you "want to get out of this house ASAP".

If you don't have much REI experience I'd avoid mobile homes. The paper returns looks good, but in real life it's so much work. Buy an undervalued conventional construction house (appreciation will be much more), renovate to rental quality, sign a lease, and scale from there getting all the benefits real estate can provide.

@Joel Carmona If you don't the time to draft a lease, application, etc. I encourage you to work with professionals like @Wesley W. mentioned. Find or buy a lease online, customize/add clauses, and take your time. Do not put the cart before the horse. You need to know the in's and out's of the agreement, be able to explain it to tenants, and sign knowing you will enforce the rules. If you can't do this PM is not for you so hire it out.

If this is your first rental run it like a business. I'd leverage an online site for rent collection, deposits, tenant screening, etc. It's so much easier than pushing paper. It makes it easier for both parties. We started using Innago for our rentals last year, and my only regret is not leveraging these platforms sooner. The small fee is worth the time savings, metrics, ease of adding properties, screening tenants, bank deposits, and everything involved with PM. Cheers. 

@Sandra Lopez Without discussing the numbers like the current interest rate, rental income, estimated market value, property taxes, $$$ invested into the renovation, etc. you won't get much advice. Every piece is important. 

Every time your refinance or sell real estate it costs you money. Think about the long term goal for the investment. Most investors use HELOC as a "bridge" to get from point A, to point B and it's rare to use it multiple times on the same property. Prices have slowed a lot so were not seeing the natural push with appreciation. It's even more important to review your numbers. Something to consider after you get an appraisal.