All Forum Posts by: Joe Ebanks

@Tom Shallcross yes i understand that but it does not take into account the loss to NOI because of increased vacancy rate, which is certainly a risk. they are 7 seperate houses. I do think if you have great tenants with no problems, and you are already charging market price for rent, you can push it too far potentially.

increasing your rent even 2% a year I think after a few years you can be charging more than market price for your rental and you're risking a higher turnover rate. It depends on how desirable your rental unit truly is vs whats available on the market. 

I just feel like I may annoy one tenant whose likely not to move if I do not mess with him. I refinanced a home and my monthly total costs are about 870$. hes paying 1330 now, started at 1300. and theres actually not many other rentals in the area to compare it vs. Its a pretty nice house and most rentals are in a lower class around here. But I guess 20-30$ a year probably wont cause him to get up and move, and will make a difference in my cashflow. 

And the other homes I have, Im already getting a very fair rent. In my opinion, some are even higher than I would expect to get... so Im leaning towards just leaving them alone or maybe just raising it 1, or 2% maximum.

@Chris Grenzig yes, i am thinking more along these lines but came here for more opinions and play devils advocate. Certainly minimal headaches is huge especially the more units you own, and are self managing. 

Hi guys, I am new to the landlording thing. I have 7 units now and they've all been very successful. almost no vacancy. I read hear and in books about how you should always raise the rent each year. I tend to agree because of inflation. 

However if you have very good tenants, and you are already basically charging market price for the rent, I think you may annoy your tenants over time to actually find a new cheaper rental. 

Curious what the thoughts are on this, do you ALWAYS raise your rent by 1-3%, or are some of you just keeping it the same on your quality tenants that you have very little problems with ? 

I frequently come back in hopes he has begun posting again. By far my favorite poster.

@Dylan B., @Bob B., @Tracy Streich,@Mike McCarthy,@Ralph R., @Loren Clive, @Chris Carson,@Account Closed Hey guys, I appreciate all the fantastic responses!

Looks like I am being cheap! I will split the cost with him of new flooring that we can agree on. I do think he could be a 5 year tenant so I'll just do my best to find a cheap installer and good product. 

Thanks a lot everyone!! You've helped make this an easy decision

So the story is, my tenant has been living at my property for a year now, and just signed a new lease. The house is in impeccable shape my wife says and he takes great care of everything. He always pays the rent on time and we expect him to live there for years actually, hes invested quite a bit into the house and I dont think he plans on purchasing a home or moving any time soon. He does have 2 kids a dog, and a girlfriend.

The carpets in the house were not in THAT good of shape when he moved in. My wife and I lived there previously and we had a dog and a baby which took somewhat of a toll. We cleaned them, but they are not great. 

So the guy wants to get some estimates on installing carpet, and he wants us to split it with him 50/50. My initial instinct was just a flat no, but I do want to keep the guy happy, and he does take pretty good care of things. My wife wants to give it to him. I wonder what everyone else thinks?

One option that might be kind of middle ground, or maybe selfish by myself... I'll help find the installer, and pick out the carpet... and if we both agree then increase the rent over the next 2 years by around what my share cost or a little more(because the 2nd year we would have built in a 30$ rent increase) 

So I could just make the offer to him if we can agree upon the installer and carpet... 

Thanks!

Hello,

I have the choice of a couple of options right now. One is a local agent of state farm, they have a very high replacement cost if I lose my property to fire. However its quite a bit more expensive than a national commercial insurance. But the replacement value for the national insurance is about 1/3 of state farms.

The costs are about 3200 united national for 7 homes vs. 5600 state farm. 

replacement costs would not even come close to the value of a few properties I own. However with state farm they are completely covered and then some. Im not sure the 2400 per year in savings is worth it?? 

Lets say its on average 50k per property for united national vs 150k per property for state farm

Can some professionals chime in on who there carriers are and what they do? any advice would be much appreciated!

I am also not sure if this type of insurance alone is enough for a landlord. Does people suggest something else for liability as well? Thank you...

hi all, I'm looking for advice from the seasoned veterans here. Ive had problems finding a long term mortgage for a 24 unit i am ingerested in. 

I just spoke with a person who thinks they can help me. They will finance it with a 7 year balloon payment. Is this how most people do it? She spoke of tax strategies to minimize penalties at sale. And also refinancing as the property was proven stablized.

I have never owned a multifamily building ans was really looking forward to it. However the balloon payment is pretty scary to me. Id like to hear from people who have experience. 

My plan for the investment is going to be a 10-15 year hold as long as it is going smoothly. However it wouldnt be unreasonable to put it back on thr market after 4 years and sell. But that balloon payment is quite scary.

Awesome podcast, loved it. So nice to hear so much history. The logging portion was very cool.

@Jay Hinrichs

so Jay, basically the key to researching title on these SFR at sheriff sales is to make sure that we are bidding on a mortgage in first position?

I am in Ohio, but I was afraid that at sheriff sale you inherit all of the liens and mortgages. Also, what happens if you bid under what the first mortgage is for? You dont owe the rest of the mortgage do you?

Not really worried about smaller utility liens and hoa's... I plan on a big spread as Im not getting inside of these homes..

Thanks a lot!

@Wayne Brooks

What happens if its the first mortgage foreclosing, but there is a second or third mortgage. Lets say the first mortgage has 50k on it, 2nd mortgage has 50k. And you bid 60k and win the house. Do you owe 40k more?? Or would they just get 10k, and you would get the title?

How do you tell which mortgage is in first position? 

Thanks!