All Forum Posts by: Jennifer Rysdam

Depends on your area. As a parent of 5 kids, I find it impossible to find rentals when we move. You can also advertise 5 bedrooms/office space/den areas. Are they small bedrooms? Could you combine 2 to make a master suite?

They want you to remodel because he "may" have a problem with carpet and dust?? Just tell them no. Their child's allergy did not suddenly occur since he's been there. If they needed a property without carpeting then they should've found a property without carpeting. Their child's allergies are their own problem, not yours. What if you change out the carpet and then they move out at the end of the lease? Then will you have to replace the carpet for the next person?? They might need to just buy a house so they can remodel it as they need to. 
They should spend their money on a good air purifier for their child. They could also get those plastic runners and cover the whole floor if they want to. They could tape them together with packaging tape. THEY need to deal with it, not you.

I have one guy that has his mounts all over the apartment. I can only imagine what those are hung up with. He even has a moose over his bed! Most mounts aren't even that heavy. I think they are just so worried about them falling that they hang them with the best anchors they can find.

A lot of it depends on the state you live in and how much money you make. I think someone said once you make over $40,000 on your LLC that you should switch to an S. Corp. for tax purposes. Again though, that may vary on where you live. Ask you tax person. They should be able to direct you.
When I purchase a rental property I get an LLC and do the purchase as the LLC for liability reasons. My flips go under one LLC because I only do one at a time so there's no reason to change it. LLC's are pretty easy and cheap here in MN, but some states are really expensive. Ask some local investors. Maybe your realtor can direct you to someone. Otherwise talk to an attorney for the best advice.

The 203K loan is great! I just got one for my current flip. Here was my process:

Find a few properties and look at them with realtor.

Make an offer contingent on inspection - offer countered and accepted

Order inspection

Get bids from trades based on what inspection said is wrong

Counteroffer based on undisclosed issues and what the bids came in at (electrical was not completely updated and up to code)

Seller countered a little higher and I agreed

I then went to bank (I had also talked with them before starting the process to make sure I qualified) with my purchase agreement and the bids from the trades (electrical update, new furnace and AC) I also gave them a list of the improvements that I was going to do to the property

They got an appraisal based on value after my improvements

Got 100% loan for purchase and $25,000 in rehab money. I didn't have to pay a dime out of pocket because my $52,500 purchase should market for $150,000 when I'm done. More than I had even estimated.

This was my process on this purchase. This is not the norm for most people. I got a steal because the husband had passed away in the middle of the renovation and only someone that was willing to finish the rehab would buy it. Some of the work he had completed was great (custom cabinets) and some was pretty sketchy (tile in bathroom glued to plywood floor, half-assed electrical update and unmarked box). Hubby and I do all but the HVAC and electrical work ourselves.

What J Scott said. Also, HELOC money is nice because you are only paying interest on the funds you are actually taking out. With a loan on your vehicle you will be paying interest on the whole thing, even if you aren't using it and it's sitting in your checking/savings account. Plus it may affect how much you pay for insurance on it.

I use QuickBooks and send invoices every month through there. They can click on it and pay online. You can also have them just deposit rent into your bank or do ACH. I would recommend ACH first because it's scheduled every month on time. With QuickBooks it takes up to 5 days for the payment to post, and then it can still bounce in that time. Bank deposit is instant if you are comfortable with that.

Sell it. Then take your profit, along with your savings, and use it for the down payment on something else that does cash flow. Maybe a duplex or multi.

List it for a week and see what interest you get. If no interest then paint it. I wouldn't spend the time and money if I didn't have to. Some people appreciate color.

I was thinking about trying the salt and vinegar thing at my building this summer. Put it in one of those containers with the wand and spray away. I don't want to use chemicals because tenants have kids that play there, and I also don't want to breathe it myself.