All Forum Posts by: John Lubin

I was having trouble selling a flip, so I just put a rent-to-own tenant in, which I got through listing on FB marketplace.  It was win-win. I get more cash upfront, cashflow after my cash-out refi, and I net more on the sale because no realtors involved.

Young family that the husband started a business 1yr ago so couldn't qualify for a mortgage, but they wanted to buy a home. 

-I gave them a 3yr option to buy at anytime

-purchase price increases 1.5% every 6 months

-They put $10k down (non-refundable) that will go towards their purchase

-They pay $1850 in rent.  And an additional $600/m for 1yr and $200/m for yr 2-3 that goes towards purchase (non-refundable).  The additional amount in yr 1 was to help decrease the initial downpayment

-Tenant responsible for all maintenance (but I did purchase them a home warranty to use)

I'm also curious on this topic, less from a home value perspective and more from a STR or MTR strategy.

I'm about to buy and remodel a property 1 mile from a Mayo Clinic.  Aside from nurses, a lot of patients do long-term stays in the area.  I'm wondering if anyone has experience catering to this rental demographic, and what key things should I be including in my rehab (e.g. bars in shower/tub, ramps on any steps, etc.)?

When evaluating each of the rentals in your portfolio (presumably on a yearly basis?), which financial metrics do you use to decide if you should keep or sell a specific property?

For example, do you look at Return on Equity, Return on Invested Capital, etc?  If I look at ROE, I might realize the house has appreciated and I can take that equity to get a better return by selling the house and investing in another property elsewhere.  (Of course there are sales costs, tax implications, etc).

Thanks!