All Forum Posts by: Jason L.

 I have a property management company who will do all this, but basically I agree with your plan. However I am worried about my liability if another incident that was more serious occurred, which is why we’re also considering enforcing the leases code of conduct.

Just to be clear there was nobody actually trespassing. The tenants girlfriend just went for a walk across the backyard, which is common ground at the property. The other tenant saw them walking and that’s when they came out with a gun. Obviously they didn’t know this was the tenants girlfriend but that’s still no excuse.

I recently bought a duplex with one inherited tenant with a lease through May 31 and the other side vacant. The vacant side tenant moved in a few days ago, but there was already an incident (duh, you've read the title!).

As my management company described it to me, the new tenant's girlfriend (not on the lease) went for a walk, cut across the backyard on her way back, where she was confronted by the tenant on the inherited side for trespassing. I'm assuming they had never met. The inherited tenant pulled a gun, but there was no violence thankfully. A police report was filed by the new tenant.

It should be noted the inherited tenant's lease with his previous manager is extremely loose with the language regarding keeping the peace, but I do think there's enough to file a 30 days to vacate notice if we wanted to. I don't really know if that is the prudent move since the tenant could trash the place or force an eviction, but I am admittedly worried about another incident potentially occurring at some point before the old tenant's lease expires in May. My property manager wants to send a sternly worded warning and see if there is any backlash. What do you guys think?

I do worry about if I have any liability as well. My home insurance policy has $500k personal liability coverage, but does anyone think I should get an umbrella policy on top of that to cover potential future liability?

I pay $800 per year for a 1300 SF block duplex. $2400 sounds insane, unless your replacement cost is like 500k and your deductible is like $50. 

Also If you’re counting on insurance to be your biggest expense, then you’re definitely way underestimating property taxes.

How about hedging your bet by doing 2 years at community college? CC costs literally a fraction of what 4 year schools cost on a per credit basis. If in 2 years you decide you have a better path outside of school, then you can get out with an Associate Degree and without the massive debt. If you like it, then CC credits will usually transfer to state colleges and will often have feeder programs to get you a scholarship to finish your Bachelors.

Edit: I think me and Nathan posted the same idea at the same time!

The biggest issue with the saturation of "BRRR" all over real estate investing is that it probably drives out more first-time investors than it brings in. It's better for clicks than it is to actually create new investors. Just empirically from reading BP the last few years, most first-time investors seem to equate "BRRR" with buying a "free house". These deals are out there, but they are generally aberrations in competitive markets and most likely will be jumped on by more experienced investors before a first-timer would have a chance. The problem is then that all the "BRRR" articles and podcasts they've consumed have embedded the idea in their heads that spending any money on a rental property is bad, and thus they should continue waiting for that "free" house they keep hearing so much about everyone else getting. They keep waiting until they eventually grow disenfranchised or lose interest. Story as old as time.

I guess the opposite side of this is that you could argue "BRRR" is good for experienced investors because it's pushing more first-time investors away from the "good" deals that do require some capital investment, which are generally more plentiful than the true 100% cashout "BRRR" deal.

I wonder if perhaps he's thinking the stated property tax amount is an annual cost not realizing that Indiana is bi-annual? Makes a lot more sense if you assume his $1700 tax number he wrote is actually only for half the year and thus he's another $1700 short. That alone would kill this deal for me (at least if using the numbers he had stated on his spreadsheet, which I agree some of his other numbers also look low to boot).

I used Housecheck for a house I bought last month. Very detailed report that was turned around same day and they were available for follow up questions even weeks after the inspection itself took place.

I own one in 33710 that I bought in 2018. Solid residential neighborhood (your prototypical B). Just make sure you stay north of Central Ave.

From an appreciation perspective, I just got the property tax statement for 2020 and the house's assessment is now up 38% in the last 2 years alone. Glass half empty mourns the extra $1000 in taxes I'm paying this year and wonders where they got the nerve! Glass half full recognizes this is because St Pete home values are on fire.

SE Florida has a reputation of being attractive to retirees and snowbirds (Boca in particular is locally referred to as "New York South"). Tampa has a reputation of being more attractive to millenials. You can follow the money from there.