All Forum Posts by: Manco Snead

@Joe P.  Much thanks. Will implement your suggestions.

Hello good people,

I know I am revisiting a common topic here, but would appreciate any feedback. I have a rental property (duplex) out of my area so have a property manager (family friend w/ experience of managing her own property) The big advantage with her is that I trust her completely and she cares. But she does not yet have a time tested list of reliable help. So, after years of owning this property I am realizing I still struggle with finding good help; landscapers, contractors, handymen etc.

How do others approach finding knowledgeable and reliable help? What systems have you used to reduce the risk of hiring the wrong people?

Any advice, stories, anecdotes are much appreciated.

Stay safe and thanks.

Greetings good people,

I was hoping to get a few thoughts on an often asked question. I am looking for a loan in order to buy a property (single family to live in then refi, or a multifamily). My credit is excellent, I have a cash flowing duplex with a great rental history, adequate savings, decent income. The issue: my job, healthcare, is supplemental (no guaranteed hours.) I have, however, been working full time for weeks and anticipate it staying this way. Ultimately, and perhaps unrealistically,  what I'm hoping to find is a program geared towards healthcare care workers that lends despite my lack of a guaranteed full time position.

Any thoughts would be appreciated.

Much thanks.

@Natalie Kolodij 

Thank you for the response Natalie. I'm not clear what you mean by it being illegal to manage a property for money unless it's for a related party. And regarding the 1099, are you suggesting I get a 1099 from her?

Greetings helpful people,

I am unclear on 1099-MISC requirements. I have a duplex which, for the last 5 years has been managed by a professional property management company who at the end of every year sent me a 1099-MISC form. This company no longer manages my property and as of a few months ago I have it managed by a family friend. This person is not a company and the arrangement is a bit less formal though she still sends me end of month statements and I do pay her a percentage every month. I of course plan to continue writing off expenses, reporting income as I always have and filing as I always have. Who needs to give who what here? I don't care if I get an actual 1099-MISC but also don't want to get a fine if I've not done this correctly.
Much thanks. 

@Michael Noto Thanks much for the pragmatic feedback; I'm currently working toward increasing my income. I'm pretty good at the frugality end of things, it's the income aspect that is currently challenging.

@Theresa Harris Hi Theresa, the 5% down would be for a single family. A duplex, which would require a higher down/15% (at least from my CU), is my first choice and yes I would be renting out one of the units, but I don't think I would qualify for the higher loan, hence I'm now focusing on a single family. A refi from my duplex is also a possibility for the higher down for the duplex, but then I'm back to not qualifying for the higher loan because I've now increased my debt on my pre-existing duplex, plus the high down results in a poor ROI given duplexes are pretty pricy where I am. In terms of the rehab; I would do most of it myself but hire out the more involved projects; plumbing, electrical.

Regarding working more; yes, that is in the works. Just started working in a new field at 18 hrs/week and haven't been able to get towards full time yet.

Thanks again.

@Vaughn K. Much thanks again for your ideas Vaughn; very pragmatic. Regarding South Hill; my thinking is only that it will (I'm generalizing here) be easier to find tenants on a more consistent basis and hopefully higher quality tenants. I'm just going off the worst property in the best neighborhood mantra. My duplex, which I was so fortunate to be able to buy when I did, is in Bellingham in a more desirable part of town; not upscale just desirable in terms location. This has served me well thus far in that getting tenants has never been an issue. But your point of view does make sense to me; West Central, as you mentioned, seems positioned to undergo a drastic change at some point with Kendall Yards being only a few blocks away. To answer your question, yes I'd live wherever if the numbers looked good and the neighborhood was good enough, even if it wasn't my ideal.

Regarding seller financing; I will be researching that. Certainly hadn't thought of some of the perspectives you described above.

My impression is that you have quite a bit of experience, so thank you again for your feedback.

Jesse

@Connor Deneen Thanks for that tip Connor; I've never dealt with owner financing, but I will research that; sounds like a good option. As a starting point how does one start that process? ; simply ask the buyer if he/she would consider owner financing? 

@Vaughn K. Those are all great ideas; thank you. The duplex rent is not included in the $22.5k; duplex cash flows around $500/month. Regarding the duplex live in flip; that was my first idea, but scratched it as I presumed I would never qualify for that higher loan amount. Will look into whether or not my CU will count pre-existing tenant rent as income.

Regarding owner financing; I hadn't thought of that. I know very little about the intricacies of that process but will research it.

Regarding $150-$200k properties; that is  ballpark figure based on what I've seen for ugly houses in good neighborhoods (i.e South Hill). Yes, you can find cheaper houses but they are in very undesirable neighborhoods. At least this is what I've been seeing.

Much thanks again.