All Forum Posts by: Tim Johnson

@Ashley McGrath Well, in your scenario you don't have to pay PMI, but I don't see how it gets you any closer to getting your next property. While you will have 20 percent equity, your will really only be able to take out a Home Equity Line of Credit up to the 80 percent of appraised value number. And now you have another loan to pay back, (a 10 percent interest loan).

In my opinion you are exchanging low interest bank financing for a higher interest rate personal loan.  For the heloc to be a good option (in my opinion) you need the loan balance down under $140K, including both bank loans and personal loans.  

I'm probably not explaining it very well.  Before you go with this option make sure you talk it over with people you trust.  I mean besides @Account Closed and I. :)

I like quads, but it depends on your market.  You could run the numbers under all three scenarios and see which cash flows the most.  I would expect to get more cash flow the more doors you have.

Hi @Bryan Johnson.  Welcome to BP!  

I did a flip in Albertville last year.  It's nice to have some contacts in the area.  

Best of luck to you in your contractor business! 

@Elena Jobsonand @Alex Frankssorry if my use of the word druggie was offensive.  

As @Joe Splitrockpointed out, the word druggie is defined as "a person who often uses illegal drugs" (at least according to Merriam Webster).  In Minnesota, smoking pot is illegal so I used that term.  I guess if he moved to your state he would no longer be a druggie? 

"Druggie" is probably one of those words that, while technically accurate, is offensive to some so should not be used.  My apologies.

Hi @Brian Gormanwelcome to bigger pockets!

It sounds like you have a great plan, renting to friends and banking the extra $.  

My advice on working with lenders, when you are presenting them with a potential deal: 

- Know your numbers backwards and forwards.  Think about how each number could "go wrong".

- Be organized when you present them the info.

- Bonus tip, it helps if you can tell them "your story" of why you want to invest.

Best of luck to you!

@Alex Franks@David Stone@Matt M. @Matt L. A big part of your argument seems to be "Pot is not that bad".  

What if he had signed an Anti-Cat policy?  A policy that said, "In this building we allow absolutely no cats.  If you are found keeping a cat you will be asked to leave and will lose your damage deposit."  And then he gets a cat as a pet...wouldn't I be fully within my rights to fulfill the terms of the contract and keep his deposit?  

I think people confused their personal feelings toward marijuana with the issue at hand in this instance.

I guess the people have spoken.  I asked for the opinion of the group and I got it.  I will be returning the unused portion of his deposit.  Thanks everyone for your input and advice.

Thanks for your comments, everyone.  I appreciate this community and the variety of opinions.  I think a diversity of viewpoints is a positive thing.  

Yes.  I watched this nice review before I made up my mind...

https://www.youtube.com/watch?v=FXb6o6vufIM

Wow, I guess my attitude toward pot is different that the majority here.  My attitude as a landlord is, I try to provide a place that I would want to live.  People with small kids were complaining that they don't like smelling pot in the building, and I guess I don't blame them.  He was on a month to month lease, I want to get a tenant who is drug free.

@Chris SoignierYes, I'm sure that he doesn't have a prescription.    In Minnesota, medical marijuana is in liquid or pill form.  Even if pot was legal I'm not sure my stance would be any different.  Cats are legal in the state of Minnesota, I chose not to allow them in my apartments.  The units are also "no smoking".

@Account ClosedThanks for your input.

Hi @Mark Totzke

I also use Buildium.  It's great.  It handles all of the accounting, maintenance requests, applications, and just about anything else you can you'd need.  I like that all my data is in the cloud so I always have access to it.  They even have a smartphone app.  Best $40 per month I spend.