All Forum Posts by: Jeff Costa

I might be cautious on a variable rate note with cash flow already negative. If that rate rises, this property may become a money sink for you. Also, get prequalified and obtain a quote from a lender (not your agent) to get a real number.You want to have confidence you can actually get that rate.

Can you maintain it yourself to eliminate the management fee? That would help your cashflow problem. 

Also, where are you getting a 5.3% rate? If you updated that to current rates, it might tip this more into unfavorable territory. 

GA is rapidly becoming the EV battery state, which should be a point of consideration.

Seeding the grass in the winter seems...odd. I would save that work for the Spring. Take care of anything that impacts the health and safety of tenants first, then anything that helps  maintain the property: gutters, electrical panel, etc...

Nice work, @Tim Sharkey? I'm curious about the $100K cash invested - what was it for? I assume it was not a loan down payment, but for land improvements?  

Use the enemy method: find nearby (0-5m away) rentals and check the kitchen countertops; what are they using?  Let that provide you guidance on making this decision.

@Courtney Jones: Do you find that even with increased rents, you still have out-of-pocket overages to pay when usage spikes?

I am looking at a quad-plex that only has two water tanks and two furnaces, where I expected four (photo below). Seems like each furnace runs two units, same for the tanks. There is no way to fairly bill usage back to tenants as its not separately metered. I could include a flat fee in rent each month, but that seems like asking for pain and a good way to hemorrhage money. 

Has anyone found a sensible solution for this scenario?  How have you solved the problem? Ideas welcome.

Thanks for the prompt response, Layla. I figured it had something to do with coordinating showing times. The binding contract probably limits the addressable market of potential buyers. Then again, listings with no photos can be hidden value, as most investors would swipe right.

What is up with the listing stipulation I see on many Rome properties: "Binding Contract required prior to showing?" Why in the world would a seller need a binding contract before showing a property? This feels like a red flag. @Layla Garrett: any idea?