All Forum Posts by: Jim Wellington

MSI(formerly Arcana) I use them for single family and 2-4s. Great rates plus I have a portal that allows me to quote and bind a policy in about 2 minutes!   Their customer service leaves a lot to be desired but the rates are great and they’ve always covered claims. 

For my multifamily properties I use Simplified. 

I could have crushed these fees with no problem! 

I always push for a 2 year lease up front. Always!   Turnover costs money and could potentially be your biggest expense as a landlord. Why?   because not only do you lose revenue but there is undoubtedly some need for repairs. Paint, flooring, and upgrades. You’re much better off keeping them in there. I do 2 years and a 25 increase on the 13th month. Most of my tenants have long tenures. I’ve got 3 different houses with 15 year tenants. I treat them well, I provide good safe and clean houses and as a result….people stay!  

I would charge. If they owned the house they’d have to pay. No difference. 

Any clog or backup caused by them is there responsibility. I generally have all my drains and sinks snaked prior to a move in. If a clog happens right after they move in then I’d probably let it slide. If they been there for 3 years then it’s in them. I put strainers in tubs and make all necessary upgrades to prevent them but if they cause them then it’s in them. 

Quote from @Zachary Salerno:

Hello my name is Zach. My wife and I have a goal to one day own a home and open a sober living. We have no experience or knowledge of anything real estate related and our plans/goals are in their baby stages. We have never owned a home and will be first time buyers. We are eager to hear any tips/advice on learning the ins and outs of buying a property to then open a sober living home. I will mention I have been in recovery for the past 9 years and know how to manage the daily operations of a sober living. But licensing,zoning,insuring, owning and operating one are a different story.

This is what my initial plan is (This is all in theory) To enter a new buyer program to purchase our first home using both of our tax return dollars. I have heard of no money down options as well. Live in the home for a year whilst waiting to be approved for licensing to operate a sober living. At or around the year mark take out a loan on our new home and use the loan to buy a new property. Then using our first home as a sober living using rent to pay the first mortgage. Let me know if this is a sound investment and plan or if it is a delusion. All critiques or reality checks are welcome.

Are advantage of new fha requirements that allow you to purchase 4 unit multi families for as little as 5% down. Live in 1, rent out the other 3. When you get ready to transition to the sober living you now have 4 rental properties. 

Welcome to being a landlord. You’re unfortunately always going to have those types of tenants. I’ve had one for 5 years. Every month she’s late. Pays the late fee and pays in installments. Half now and half later. 

Do I like it?  No. 

But she doesn’t owe me any money after 5 years. She takes care of the place, she’s is a good neighbor in the community, and she’s clean. 

Again I don’t love it but you could do worse. 

Quote from @Terri B.:

An obstacle I'm running into with building my portfolio after analyzing a potential deal is the very high property taxes, particularly on properties that have been owned a long time by the previous owner. Im.not certain if this is a Michigan/Detroit thing but I'm finding the excessive taxes are making good cashflowing deals and the ability to profit impossible. For instance the last property I was considering taxes would go from $1K to $10K annually. Is anyone else running into to this and how are you navigating? I'm trying to think creatively (such as a land contract for a period of time) and coming up short on how to make a good deal happen.

It’s unfortunately a real issue in Michigan. You can call the assessor and ask for an estimate so you can properly prepare. 

Get a quote from a plumber to re pipe the house, new hot water tank, toilets, sink traps, traps on tubs etc. 

@Bryan H. as an investor, in my rentals I put vinyl plank flooring. Granite counter tops(because it’s cheap and holds up well) lights without globes(globes get lost), I refinish hardwood floors if they are there already(natural with satin finish because it shows less scratches). I use the same paint color in every house.  Kitchen cabinets always get door pulls.  I remove garage door openers unless it’s attached. I remove ceiling fans. I remove garbage disposals. 

Just a few things I always do.   

Andrew,  Hope all is well. 

The score can also vary just by the time of pull and credit utilization. If you’ve got high credit card balances it’s better to pull after a big payment and before the 3 boards up date. Sounds like you are getting close.