All Forum Posts by: Josh Koett

Hello BP,

Right now I'm searching for a multifamily (duplex to quadplex) in Kansas City Missouri. I plan on house-hacking and living there. But, instead of living in one of the units, can I live in my 20' tiny home on the property while renting out all the units? Any thoughts on this? I'm hoping this wont affect the loan as I would prefer to do a FHA 3% down or similar. I'm looking for a property with a large backyard or opening to an alley, so It will cause little disruption to the tenants. Any input is appreciated?

Thank you all for the replies... there are a lot of things to think about. I will weigh them out and make some decisions based on your input.  Thanks again!

Hello BP Community,  

I took out a 30 Year Term, $100,000  policy with AAA Life Insurance.  Right now I'm paying $36 a month. Presently I'm single, no kids and took out this policy at 31 years old and I've had it for a couple years.  I thought getting  life insurance now would be cheaper instead of waiting until I'm older with a family. But the downside with my policy is losing my premium every month. ----  Recently, my agent told me about Return on Premium (ROP).  My policy would be the same except my monthly premium would increase to $56 a month, and I would get back all the money I put in at the end of 30 years which is about $20,000. --- Meanwhile, I've been thinking it over and my agent now is recommending 200,000 Death benefit  Universal Life which would be a whopping $100 a month.  After listening to Dave Ramsey, I think I will stay away from Universal Life and invest the rest in real estate.   But, should I upgrade my account to Return on Premium for the 30 Year Term policy since I'll be getting it back if I make it to my 60's.  I think without ROP all that money is lost.  Any suggestions would be helpful.  Thank you.

Hello BP Community,  

I took out a 30 Year Term, $100,000  policy with AAA Life Insurance.  Right now I'm paying $36 a month. Presently I'm single, no kids and took out this policy at 31 years old and I've had it for a couple years.  I thought getting  life insurance now would be cheaper instead of waiting until I'm older with a family. But the downside with my policy is losing my premium every month. ----  Recently, my agent told me about Return on Premium (ROP).  My policy would be the same except my monthly premium would increase to $56 a month, and I would get back all the money I put in at the end of 30 years which is about $20,000. --- Meanwhile, I've been thinking it over and my agent now is recommending 200,000 Death benefit  Universal Life which would be a whopping $100 a month.  After listening to Dave Ramsey, I think I will stay away from Universal Life and invest the rest in real estate.   But, should I upgrade my account to Return on Premium for the 30 Year Term policy since I'll be getting it back if I make it to my 60's.  I think without ROP all that money is lost.  Any suggestions would be helpful.  Thank you.

Hello, 

My sister has major school loan debt  and is still in debt over 10 years later. Is there something I can look into to help her.  She's makes a lousy salary and the debt keeps accruing fees.  Thank you

  I have a friend who is renting an older but  nice single family home for  $1650  a month.  She has been there only three weeks when a major plumbing issue came up.  Raw sewage started overflowing out of the toilets, sink, bathtub and all over the floor.  The Owner/Landlord was apologetic.  He hired a contractor and crew who tore-up and trenched a channel in the garage concrete  to access the pipes,  trenched the front lawn, and tore up the kitchen floor and wall.  This went on for 3 weeks!  The contractor also used 5 new white bath towels to clean-up additional sewage in the bathroom without permission while gone at work.  During this time, she wasn't able to use or park in the garage, use the kitchen to cook ( she ate out for 3 weeks except for some microwave dishes) since there was no water in the kitchen and it smelled really bad, and there were a bunch of construction guys coming in and out, and the place was just a mess from different crews leaving junk behind after the day was over.  She even lent the plumber a hand holding clamps under the sink/toilet one evening because his guy left. --- My friend was patient and after all was done, the Landlord  only offered her a $25 Walmart gift card and a couple towels to replace the ones soaked in feces.  He apologized saying things were tight and  has other house issues to deal with at his permanent residence --- Does this seem Fair?  The person she is renting from also works in the same office as her. What would you do? Should he have given her a discount on that months rent? Or help out with the food costs of not having a kitchen to cook in? What is the  procedure in cases like this?   It's just upsetting.    Thank you

Thank you very much Bob and Alexander, 

   I appreciate the offer Bob and i'll be sure to ask for the comps in the future. Those are some great numbers on cash flow Alexander. Im learning quite a bit! Thanks again, Josh

Thank you Alexander! I appreciate your input. Even with a good cap rate, is there an average cash flow per month you are looking for in a home around this price?  Maybe  $150-200 a month. Is there a number where its not worth your effort.  I fear with low cashflow if a problem comes up it would take over a year to recover the costs. I really enjoy your blog Cashflowdiaries and Im learning a lot through your experiences!   Thank you, Josh

Thank you Ali and Brie,

@aliboone, here is an example. Im not sure if these are okay or poor deals and how to compare them... Single family, built in 1955, 1150 square feet, 3 bedroom, 1 bath, grade B, sales price $53,000, rent $800, gross yield 18.11%, net yield 14.04%, gross revenue $9,600, tax $701, insurance $500, management fees $768, maintainance $192, NOI $7,439.---- I checked some of these properties on Trulia and some numbers were off like square footage at 840 sq.ft and the year for the property above. Plus maintenance of only $192 a year or $16 a month seems a bit low.... For the BP calculator I put in 20% down, 3% vacancy and 30 year loan. Some calculations were negative and others at less than $100 a month cashflow. Do most Turnkey companies inflate the numbers? Maybe I just need to sift through the properties offered and find a better one. Thank you, Josh

Hello BP Community,

I'm considering buying a Turnkey property and have a question about inputing numbers into the "Rental Properties Calculator" here on BP. The information given by this company has the following information listed: Sales price, rent, gross yield, net yield, gross revenue, tax, insurance, management fees, maintainance, and NOI. There are different names that don't match up listed on the BP calculator from the information given by the Turnkey company. I'm still learning how to interpret the data and curious if this is how you'd evaluate a Turnkey property? Is there another way you recommend checking the numbers listed by Turnkey companies. --- Lastly, I understand this is a tool and may not reflect reality in the real world. Should I contact a realtor in the area and ask for recently sold homes, market values, comps etc? Do you recommend other websites like Trulia, Realtor, Craiglist or others? Please don't be critical of my question and I thank you for your feedback. Josh