All Forum Posts by: Jennifer Rysdam

My first was an 8-plex that I bought in 2017. I just couldn't see myself jumping into the small beans and liability of a single family. One major repair and there goes 2 years of income. I found a great deal in my new small town and dove right in. He had recently paid off his rural development loan and went off the program. Tenants were still just paying their share of the rent, some as low as $150.00. It was a mess but I had no problem moving them onto their new locations and getting the units cleaned/remodeled and filled up at market rents. Others had tried to buy it but the financing fell through because his financials were so bad. I offered his asking price $175,000 on a contract for deed with $10,000 down, $10,000 in 6 months, and $10,000 at 12 months, plus $850 per month. Just before the last $10,000 was due I was able to get a loan and get it paid off. I have had no regrets. I have 8 properties under one roof, with one lawn, one location, one tax bill, etc. I completely remodeled 2 units, partially remodeled 2 more, and did some landscaping. When they appraised it for the loan it was appraised at $300,000!
I'm also going to be starting a flip in a couple of weeks, but I will sell that when I'm done. I got a pretty sweet deal there too. We have done live and flips 3 times and that was very profitable for us, but we intended on living in them for a few years anyways and just worked on them as we could. This will be the first one that I'm not living in, so it will be MUCH easier and faster.

Our oldest will be graduating in 2020 and I'm going to get her started in a duplex or 4 plex for college once she's ready. I'd rather she earn her keep that way than work full time while going to school. I only wish I had started at her age!

Hey everyone! I'm going to be doing an inspection of all of the units in my 8-plex tomorrow. How picky are you as far as excessive "stuff" and cleanliness? I have one guy whose second bedroom looks like a tool shed and his kitchen walls are all splattered. Light switches are filthy. I've noticed these things while doing repairs. All stuff that's easy to remedy when he moves out, but looking for your ideas or advice. Thanks!

I think it may just depend on if people show up to work in some cases too. They may intend to keep an office open and running but if people don't show up it's hard to get things done. Personally I think ALL of the unpaid federal workers should just stay home for a couple of days. They might find a faster end to this if it was a REAL government shutdown.

I think if your other properties are in great shape and you take him there you'll help to ease any fears he may have. Good luck! Sounds like a good plan. I got into my 8-plex with seller financing as well and it worked out great!

Welcome and good luck with your new path. My best advice would be to listen to the podcasts and learn all of the markets that you want to invest in really well. That way when you are ready to jump in you'll be confident and ready to go. Best wishes!

@Kevin Evers I'm not a fan of PayPal for things like this . My friend's husband got burned by them once and I'd hate to have it happen to me. A customer bought a bunch of acoustical panels from his business and paid with PayPal. Then they disputed the product for some reason and without even contacting him PayPal just sucked the money back out of his account and gave it back to them. So now the customer had the money and the product! THEN he had to fight to get one or the other back. I lost my trust in them right there.

The big difference for me was that NREIG's quote said that they would only cover what I currently have invested in the flip. My State Farm quote (who I have my personal stuff with too) came in at the same premium amount and will insure at 100% of replacement/rebuild. Here's why that's a great deal:
I'm insuring a 1915 two story 3/2 that I just bought for $52,500. I plan on putting about $30,000 into it and selling it somewhere between $120,000 and $150,000. State Farm sets the replacement/rebuild value at $253,000. For $98 per month I'd say that's a sweet deal! They'll rebuild the thing instead of just giving me back what I have into it.

State Farm for the win this time :) 

(I have to add that I didn't go through them for my 8-plex because they were much higher than Berkshire Hathaway Guard.)

I send out an invoice one week before the 1st. Some pay off of that invoice through ACH. I give a 5 day grace period and then go and pick up the rent out of the box on the 6th. So far it works great for me. I'd like to make it due on the 1st, but I have one tenant on social security and he doesn't get it until the 3rd.

Here's some info on it: https://www.thebalancesmb.com/minnesota-security-d...

When I bought my 8-plex I just opened a checking, savings, and another savings for security deposits. The previous owner wrote me a check for all the deposit money and I deposited it in that savings account. There it sits until someone moves out or in. That's all it's for.

You said that you responded to the first issue right away. Was it an issue that got you into the unit? Were you able to see it at that time? I think you'll be fine. I understand the whole disrespect thing of him not getting back to you, but many times that's just part of the job. I have several tenants that greatly lack any respectable social skills. 
Safe travels!