All Forum Posts by: Jovon English

@Steve Vaughan  Hey Steve, thanks for the input.  I did a loan consolidation years ago so it appears I only have two loans.

@Jonathan W.  I used to invest in stock and stock options but always got burned in the end.  Didn't have time to constantly stay on top of the market.  I do believe in the cannabis industry but don't want to take the risks at this point.

@Erik W. Great discussion there about multi-fam vs. single. I think there's some other factors there like HOA, lawn maintenance, insurance, and the cost of selling two homes versus a duplex. I haven't ran all the numbers myself but I am still very happy that I bought a duplex and not two single family homes. I'm looking at partnering up to buy a quad in cash but let's say I do need to go through a bank to buy it. I would much rather deal with one mortgage underwriting process than 4. It is so time consuming and a pain in the ***.

@Bill Manassero  Great write up!  I have been busy and out of town so sorry for the delay in getting back.  I didn't see what option you ultimately went with.  I think the apartment building would be the best bet.  What state do you invest in?

So, after traveling to Ohio to visit family I went and looked at a quad that is up for sale.  I'm working with a partner and we are planning on making a cash offer.  However, I will have to put up around 170k instead of 100k.  That makes me a little uneasy but it may be worth it.

@Alina Trigub, Thanks for your feedback.  Have you tried crowdfunding?  Interested to know what the pitfalls are and why passive investing may be better.

@Jason Hendrickson, Yes I seriously gave this one some thought.  I remember when I was going through the loan process the bank gave me such a hard time and I almost lost the deal...I vowed to pay this note off as soon as possible!

@Mark S., The lease was a splurge and the first time I did it.  I am the type that stays on top of new technology plus I work from home so mileage won't be an issue.  But yes, I admit it isn't the smartest thing to do.  But I do love driving my Jaguar E-Pace...fun to drive but I wouldn't buy it.

Hi Cassi, thanks for taking the time to reply.  As for debt, I have about 12k left on a government student loan at 4.5%.  At one time I thought about paying that off but then I reconsidered and now I just make the minimum payment on it.  I pay my credit card off every month and I have a newer leased car for the next 2 years.

My emergency fund should get me by for a full year and my 401k is at a good size for my age.

The duplex is cash flowing nearly $500 a month after paying off the mortgage, insurance, and saving for maintenance.  I would love to by a 4-plex in Ohio but being an out of state landlord is challenging and I don't want my cash flow eaten up by a property manager.  It would make sense if the numbers were good but I've heard the market there is fairly hot so I don't want to jump into something that really isn't worth it.

Good call on my mom's condo.  It is a nice unit that was built in 2004 and only about a mile from the duplex.  However, a friend of mine had me thinking about the demographics that it won't appeal to, which are seniors and families that care about the school district.

Hello,

I recently sold a house in Southern California where the market is tanking so I do consider myself lucky enough to get it sold without losing a ton of money.  Anyway, what should I do with the profit?  I'm single now and don't want to buy another house or a condo in Orange County for $600,000 or so.  I will rent for a couple of years.  Here are my options for the money:

1. Deposit it in a high interest savings account at 2.45%

2. Pay off my rented duplex in Ohio.  Balance is about 100k at 4.5%

3. Pay off my Mom's condo mortgage in Ohio which is about 100k and then have her pay me rent.  The condo is worth about 115k.  My only issues with the condo is that the schools in the area of Canal Winchester are bad.  Also, it has three flights of stairs so its not a good rental unit for seniors.  However, when my mom moves out it could rent for $1,200 to $1,300.  Association is $200.

4. Invest it in a crowd sourcing commercial real estate site.  They say returns are around 9% to 12%.

5. Find another multi-family property and take on more debt.

6. Blow 1/3 of it in Vegas for my 40th birthday and do some more traveling.

What would you do? 

Oh damn.

@Jeremy Hua Okay, got it.  I have actually contacted Dimitri about this tenant before and was ready to move forward and then she paid the rent.  New development... I called the water company and they issued a shut off order for 7/10.  So this should force her to make good on her promise to vacate since I don't think she would live there with two kids and no water.  But I suppose she could make a partial payment to get the water turned back on...  Probably a good idea to just file the eviction.

I use erentpayment.com.  It will automatically charge a late fee and you can block partial payments.  I also like the fact that I can block full payments if a tenant gets behind and the 3 day notice to vacate has passed.

Alright, I am back for more suggestions.  I got an email from the tenant stating that she plans on vacating the property on 7/14....which is GREAT!  However, I don't trust her and I am certain that she will not pay the $470 water bill or the prorated rent or any other fees associated with breaking the lease.  The 30 day notice on the lease violation is now expired so I believe I can legally proceed with the eviction process.  Since she may be leaving on the 14th, should I still file for the eviction or not?  It will cost me money and time and since she will leave it will get thrown out.

Thanks guys.  I think she will pay since I've sent four 3 day notices to vacate this year already and she ends up paying the late rent.  Good to know I'm on the right track if she doesn't pay it.  Her water will get shut off any day now so I'm going to hold off on paying it myself.  However, I'm concerned that if we do go to court that the eviction would get thrown out because I didn't prevent the water from being shut off.

I don't know if I want to add water to the rent since it is a variable cost but its not a bad idea.  I don't have problems with other tenants, its just the one I didn't get to screen.