All Forum Posts by: Joe G.

@Naomi Marie

Why couldn't you use the VA loan?

@Joseph Montes

I have been following your situation, I am sorry to hear about it. Other than the signs you stated above about the tenant's late and partial payment, what other signs did you see that this tenant might act this way? Maybe looking back at the to application as well?

I am an out of state property owner as well (I use a local property manager) and would love to learn from your situation. Please keep the forum updated with what happens.

Thanks.

@Naomi Marie

Welcome to BP. I am active duty Army, with plans to stay until retirement, however my plans may be able to give you some ideas.

-Purchase where you think you can rent it out the best if that is your plan, however if you want a better quality of life buy where you want to live and deal with the rental part later.

-Buy within your price range for payment as you don't want to be house-poor while living there. Military BAH is great because it is tax-free.

-Research rental rents in the areas you want to purchase, ensure the rental amount covers your costs( mortgage, repairs, HOA, PM fees).

Questions for you:

Are you using a VA loan?

How much down payment will you use?

What is your savings plan now for when you turn the home into a rental or cover unexpected costs?

I have heard the DC market is rocketing and the MD market is following but not quite as strong. Depending on what you truly want, a home or a future investment you will have to decide where to buy.

Good luck and welcome again!

@Robert Lasko

I am active duty military, I have homes in three different states. I interview and vet my PMs very carefully. BP has a great interview sheet on the site for PMs. Know the details of the contract with a PM and the contract the PM makes with the tenant. In three different states the 'normal' is always different. Expectation management is key.

@Al Williamson @Jack Collins

I have purchased gift cards from Lowes at the same time as other items, the gift cards are not discounted. That would not make sense for the retailer because you would receive the discount twice, once at purchase of gift card and once at use of the gift card when purchasing products.

@Robert Graham @Andy Ballester

@Al Williamson

Lowes and Home Depot have never denied me the discount. I am active duty but mostly they just glanced at my ID card. In 2011 I spend upwards of $5000 that year remodeling much of my primary home so I never reached any limits, but that amount was pieced together, not all at once or within one month. I can't see them accounting over period of time as they never tracked my purchases. I preferred Lowes because the cashier was able to apply the discount while HD has to get a manager, or it may have been the other way around. Either way, I never had a problem with the discount.

@Steven Hamilton II

Steven, I am a newer property owner and also use property managers due to being out of the area. One of my PMs doesn't issue me a 1099-MISC…should I be worried? He wanted to do things more low key. He does a very good job with everything and I have no complaints, however how would this get me in trouble with taxes? As the owner should be I giving the PM a 1099-MISC?

Thanks

@Arthur Banks , How long do you plan on the rental being on the market? What market are you targeting? I am not sure if I would have enough time to stage a home as I want a week or less between turnovers, just enough time to inspect, schedule and conduct repairs, and complete major maintenance. Are you trying to push the rental rate as high as you can? What are your goals with staging? How much would it cost you?

@Jacob Elbe

Welcome. This site has tons of knowledge and more importantly, hundreds of experts who are willing to assist.

Are you selling your current home just because it breaks even? How much equity would you gain by selling? Could you refi the loan to have lower payments? What does your property manager charge?

I am active duty military also. I have turned my primary residents into rentals when I have departed the area, some are doing better than others but I am keeping them all.

Please keep us posted about your turn key experiences and again welcome.

Bryce Y.,
I would wait. Milk a few more years out of the current roof while your assets are making money elsewhere. I agree with yearly inspection of the attic.

Have you done an assessment on the tax advantages of the repairs vice replacement, would one work better for your situation?

I also agree with the other comments about getting quotes to know general cost and then waiting until slow season for contractors. This type of action does require some micro-managment.

I would be interested in your decision and the thought process behind it. Keep us posted.