All Forum Posts by: Jerry Evans

Yes, NOI does include Management fees. Also, even though it stayed vacancy is at 0. It always good to put up a reserved fund (7-10%)just in case a tenant breaks their lease.

Hey, I don't think there is enough information. You would have take into account: Property taxes: Vacancy: 7% Cap ex: 5-10%(some investors bundle with maintenance repairs) Maintenance repairs: 5-10% Utilities: Mortgage: Management fee: 10% usually Once you subtract those figures from your total rents, it should paint a nice picture in determining where you are monthly cash flow.

You may have wait until their current lease expires.

Hello Megan A. I am also from the twin cities. I'd suggest adding an "Early termination Clause" to your lease for future references. Although I feel like your current resident may comply, having a early termination clause sort of negates some of that unknown reaction. My clause simply states: "The tenant agrees to give the landlord a 60 day notice, this notice will begin on the first day of the month after the notice was given. Because tenant wants to terminate the lease early, the landlord will suffer a lose. Therefore, tenant agrees to pay land 2 months rent. If sum is not equal to 2 months rent, landlord has the right to not agree to the termination of lease and can require resident to comply with terms of the lease...." I'd emphasis it when going over your lease as well. And maybe you should start marketing your unit for a new move-In. Especially if know this tenant is for sure moving.

Eric Bradeis once you move will you be able to cash flow reasonably with your expenses included?

Eric Bradeis another thing I would consider is once you move out and rent the unit you used to live in

Hello Minnesota native! 203k can only be used for 1-4 family units. I would get repair bids from contractors rather than going off speculation, plus you look more credible. Then I would ask friends or family for any possible resource. If you can't find anyone to partner up with, join the local REIA group and network!

Hello James, Of course this is my personal opinion. I would say once or twice a year. I also like to use different lingo as well like, energy audit. I go in and not only inspect the dwelling for any unknown damages. I also inspect plumbing to assure there aren't any leaks, maybe filter replacement, co and smoke batteries. I hope I was of some help! Jerry,

Bashir Badru I have had a pretty good experience inheriting tenants. Once you are able to train them to your system they're gold, or at least mine have been(minus the small nagging complaints) One of the things I did before I purchased my property was interviewed my tenants. I asked about their living experience, what would they like to see change, and has there been pre existing issues I should know about(management or repair related). Now I know not all tenants will to the truth, but, you learn to get a feel for what you're walking into before you walk into it!

@Ken P. very good point. I didn't take into consideration the varieties of class C's. As for the city's population of 80k+, I wouldn't think filling the units would be a issue, especially upon them being updated. I guess I have to a bit more research about job attraction and what specific employers there are in this particular city. Thank you, Ken.