All Forum Posts by: Joshua S.

@Jack Clough

Well done, excellent work! I'm assuming you have experience to have the confidence to take on a rehab of this magnitude. If you don't mind me asking, how did you go about financing the deal/rehab? Was it all hard money? Is there a seasoning period before you're able to refinance? Can't wait to see the interior pics! Be sure to link them here! :)

This will be my first meetup. Total newbie looking to make some friends and learn. Can't wait.

Very well done! It looks great! And great profit! May I ask, how did you come up with the money to purchase and rehab and where did you do the flip?  Thank you!

Going forward, change your lease. Late fee sometimes limited by state law, so check your laws. But I live in Virginia and give ZERO grace period and charge a 5% late fee on the 2nd and then a $20 per day after that. This is a business. People are giving you money for a place to live. You can be kind and reward good behavior, like giving money off rent on Christmas. But you should be firm. If you can’t, you may be better off paying a property management company. Not only do I charge my tenant late fees starting on the 2nd, but if they don’t talk to me about paying late, on the 5th I issue a 5 day pay or quit notice. If they do neither, I file for an eviction. Also, my lease has a clause explaining mold that they have to sign stating they’ll alert me immediately if they notice any mold at all. Mold making her kid sick then tell her to move. She’d have to prove it caused harm to her child if she was to sue you. Not only that but the fact that she noticed the hole and water escaping causing mold and didn’t tell you about, she probably wouldn’t have a case anyway. I’m not a lawyer and this isn’t legal advice. These are my opinions and assumptions. I don’t know the extent of the mold and what not. As for cash for keys, I wouldn’t offer more than like $200. Depends on your situation. But I wouldn’t do it. Should have it in your lease that tenant needs to notify you of ANY issues. Hope this helps, if nothing else then for the future.

Agree with the rest. It’s a two person job, but it’s not too difficult. Thanks to shark-bite fittings, you rarely ever need to hard pipe to the water heater. But yeah, it should cost between $600 - $1,000 if you use a plumber... could cost way less if you have any handy friends. My buddy and I replaced the water heater in my rental for about $400 (the cost of the water heater).

Found a 3/2 ranch, 1,700 sq. ft. On the market for $99,000 in a neighborhood where this style sells for $190-200K. Want to try and BRRRR it using a hard money loan. It's my understanding that hard money will lend 70% loan to ARV for a higher percentage rate. Trying to do this deal spending little, if any, of my own money. It'll rent for around $1,600/month. It's been on the market for about a month. Still need to go and look at it with a realtor. This house is in Chesapeake, VA. See OneDrive shared folder below. I'm looking for any thoughts, opinions, advice, referrals for good realtor, good general contractor (to help est. rehab costs). https://1drv.ms/f/s!Ap9acyvpXb_buxfDNJau3I1qoF9n Thanks all!

Found a 3/2 ranch, 1,700 sq. ft. On the market for $99,000 in a neighborhood where this style sells for $190-200K. Want to try and BRRRR it using a hard money loan. It's my understanding that hard money will lend 70% loan to ARV for a higher percentage rate. Trying to do this deal spending little, if any, of my own money. It'll rent for around $1,600/month. It's been on the market for about a month. Still need to go and look at it with a realtor. This house is in Chesapeake, VA. See OneDrive shared folder below. I'm looking for any thoughts, opinions, advice, referrals for good realtor, good general contractor (to help est. rehab costs). https://1drv.ms/f/s!Ap9acyvpXb_buxfDNJau3I1qoF9n Thanks all!

This is true. It's my understanding that even here in Hampton Roads, VA, it's not unusual to charge a potential tenant more if they want a month to month lease instead of a one year lease.

Also, when you do have them sign a lease, I would have the lease expire during the summer months and then from there sign year to year leases. It's way easier to find tenants during the spring and summer months. And if you don't mind me asking, did you pay outright for the property? I ask because a 30 year mortgage payment (P&I only) for that property would be $2,192 with a 3% interest rate. Rent doesn't appear to cover expenses.

I would say it may be a good idea to keep them on a month to month lease for just a few months. That will give you both time to get used to each other before committing them to a 1 year lease. It keeps both of your options open for the time being. You don't want to commit them to a one year lease only to find out later that there is something that you don't like, and drives you crazy, that they do. As far as the rent increase, I would agree that you should discuss it with them and explain the current market rates. You could also discuss with them the possibility of easing them into the higher rent by maybe only increasing it a small amount every 6 months or so. Just a thought.