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All Forum Posts by: JD Martin

JD Martin has started 62 posts and replied 9331 times.

Post: Wise to do business with your tenants?

JD Martin
ModeratorPosted
  • Rock Star Extraordinaire
  • Northeast, TN
  • Posts 9,828
  • Votes 15,793

I think you're on the right track. Personally, I would have laughed at the ultimatum, especially if the guy is under 30 - that's just a lot of braggadocio talking. As long as he's paying the rent and taking care of the place, I would let it go in one ear and out the other. 

As for the roofing, I *probably* would not use a company that the tenant worked for unless it was really soft picking for a decent contractor or they were the best and cheapest in town. This is double if you have a working relationship that you already value with one or more companies. 

Post: Concerned about age of property

JD Martin
ModeratorPosted
  • Rock Star Extraordinaire
  • Northeast, TN
  • Posts 9,828
  • Votes 15,793

Foundation, roof, and termites. Those would be my 3 biggest worries on anything that old. Asbestos and lead could be in anything built before the 80's. Depending on when electricity was added and updated (or not) that could be a huge cost as well. 

Post: Excel Speadsheet basics - Example?

JD Martin
ModeratorPosted
  • Rock Star Extraordinaire
  • Northeast, TN
  • Posts 9,828
  • Votes 15,793

I don't bother with when rent needs to come in, because if it's not in my account 5 days after the first someone is getting a Notice to Vacate. That takes care of that record keeping. 

I keep spreadsheets on each property mostly to keep up with tax information. I use 3 categories - mileage, meals, materials, and just drop the receipt expenses into each. At the end of the year I'll pull out of materials anything that needs to be capitalized (i.e. kitchen cabinets). My spreadsheet for each property more or less looks like this: date of item in Column A, expense in appropriate column B-D. Autosum formula at the bottom of each column.

I don't bother with maintenance; I keep up with repairs as necessary and most regular maintenance (i.e. cutting grass) is done by the tenant. If you keep up with all maintenance, or contract it out, you would probably want to have a spreadsheet for this. Just like with expenses, except you probably list the maintenance item in Column A (clean gutters, change filters, etc), and create however many Columns B-whatever as necessary for the frequency of the item. Then you can fill in the column with the date it was done, or if you want to calculate it for tax purposes, the amount you paid (where the headers are the months/weeks/days). 

Post: BRRRR Refinance

JD Martin
ModeratorPosted
  • Rock Star Extraordinaire
  • Northeast, TN
  • Posts 9,828
  • Votes 15,793

PS: I left out the most important part: I get the property rented, pronto! :)

Post: BRRRR Refinance

JD Martin
ModeratorPosted
  • Rock Star Extraordinaire
  • Northeast, TN
  • Posts 9,828
  • Votes 15,793

Quick and dirty, my way: buy property for cash, rehab the property, wait 6 months (or if a great deal comes along, do it now and leave some cash behind), refinance for 75% of appraised value - which, if you have done it right, is more than your cash - get your cash out, leave the increased equity as your new cash and have a fixed note, repeat. I do houses in low cost level, less than $60k, and when I'm done the increased value of the house is more than my cash in the house.

Post: Tenant, Pro Satellite Installer, wants to do it himself

JD Martin
ModeratorPosted
  • Rock Star Extraordinaire
  • Northeast, TN
  • Posts 9,828
  • Votes 15,793

That is a pretty low key job, I probably would if he was a good tenant with the caveat that no damage is done to the house, and that it not be mounted on the roof or anywhere that water can penetrate the structure.

Post: Fastest way to determine rehab costs?

JD Martin
ModeratorPosted
  • Rock Star Extraordinaire
  • Northeast, TN
  • Posts 9,828
  • Votes 15,793

Fastest way is to have an intimate knowledge of what materials cost, retail, and then double it for labor if you are contracting it out. That is a rough guide but works reasonably well. If you don't have a good knowledge of what things cost, you need to spend a good couple of afternoons at HD studying prices. Quickest way to losing your *** in REI is to underestimate the time, money and scope of projects. I have been building and rehabbing for almost 25 years and I still run into issues that I need to study to get close on the costs. You should consider interning with a contractor. Oh, and heavy demand means higher, not lower prices.

Post: Any banks that allow seller financing as equity?

JD Martin
ModeratorPosted
  • Rock Star Extraordinaire
  • Northeast, TN
  • Posts 9,828
  • Votes 15,793

I can't see the owner going for it unless he is cracked. The bank is going to want first position on the note, which leaves the seller at your mercy of losing his property if you don't make the payment. The bank might not care who has 2nd position, but the guy that owns it should.

Post: Security check bounced ... I screwed up!

JD Martin
ModeratorPosted
  • Rock Star Extraordinaire
  • Northeast, TN
  • Posts 9,828
  • Votes 15,793

My lease says lease is only valid upon receipt of payment. They didn't make payment so there is no valid lease (hopefully). How does your lease read?

Post: Auto collect Rent

JD Martin
ModeratorPosted
  • Rock Star Extraordinaire
  • Northeast, TN
  • Posts 9,828
  • Votes 15,793

I use the same, cozy and rent payment