All Forum Posts by: J. Martin

If you have the flexibility to move there, I would put $25K down on a big, $700K 4plex with an FHA loan, and use the remaining $75K for reserves and putting down on another deal. But I like the leveraged appreciation and low downpayments associated with FHA loans.

$6k in NET income monthly with this investment would be unrealistic to achieve IMHO. That is $72K/yr in net income on $100K equity = 72% ROE. If you figure out how to do that consistently without taking risks that could collapse the empire, let me know and I can probably help you arrange a few billion in equity..

I went sort of halfway and did 6mo leases instead of 12mo at the beginning. just in case I didn't like their attitude, habits, friends around, whatever.. but will only do 12mo in the future..

I agree. Get better tenants rather than worry about M2M leases where you might deal with vacancies and people looking for a short-term solution when looking on CL. Having said that, it's common for leases to go M2M here after the original lease term..

@Al Williamson You've reaffirmed things for me and given me inspiration to do positive things also. So thanks for all your help too! I had to bump mine up too after thinking about it for a while.. Have a great 2014!

And keep inspiring us to be better people, in addition to better landlords!!

@Account Closed ,

That is a sad, sad story. People shot over a real estate dispute (or probably more likely, the frustration caused by the disputes..)

I heard something the other day about treating other well.. even under a bad situation..

Everyone you meet is fighting their own war you are not aware of, so be nice..

@Jimmy Hong and @Gerald K. ,

Managing your time and negotiating for the best deal seem to be recurring themes on this post.. Jimmy, I had the same thing happen, but went back to the table and negotiated a $20K discount due to inspections.. It worked, but the offer was already a little high..

As my good friend always says, "You don't get what you deserve. You get what you negotiate for."

@Alex M. , I own up in the east bay, but electricity costs can't be that different.. That is exorbitant! (if it is 1 month w/ no deposit fee or other one-time fee - check your bill). My 2br is $20/mo (2 people). One of my tenant's is 40/mo (3 people). Laundry & hot water not included.

Tips for you:
Call PG&E and see if they can provide you with the average for your size/type building. If it is way over, see if they can come out and do a free audit.. Are there any old heaters, appliances, or wires that you thought were unhooked, but may be leaking electricity? It sounds like something is going beyond besides needing to be split..

@Johnson H. ,

Is the vegas condo a vaca rental? exec? hotel competition? Just curious.. But I know the condo market has been beat down, so hopefully good price still..

I had a similar issue with the lease expiring at a bad time, so I negotiated to have them sign a new 6-month lease about a month before the prior expiration (I was going on a long trip to Europe and didn't want to have vacancies while I was gone, because I self-manage.) But it's normal to go month-to-month after the first lease end in this area, so had to give some incentive.. (I like them and didn't want to give ultimatum.)

Fortunately, I got 2 months deposit at lease signing (1 month is normal in area), so I offered about half of 1 month's deposit back to sign the new 6 month lease. I was OK with this because they're paying good rents and I don't want to give them an incentive to leave and free up a bunch of money leaving to go to a 1-month deposit apartment..

The alternative is just to write the lease for an odd term (9mo, 14mo) to have it expire at a good time for the market. But is it common to renew yearly leases there? Or just M2M?

@Colleen F. , I think you're on board with a lot of people on the time management/estimating, expense estimating (how often are we all on time AND budget?), and some negotiating/vendor issues. I hear you. I don't like to inconvenience people, but sometimes you just have to put your foot down on important matters..
And get multiple quotes!

@KYLE Z. , I mentioned taking a look at the water bill periodically in another post about utilizing historical financial information in ongoing management. Just curious, do you live in the area? Ever drive by? Or property manager? Did they know? I'm going to have my handyman live in one of my units to keep an eye on everything, to avoid things like this. But could be much worse..

@Jerry W. , that's an interesting deal structure..

I've been looking at different ways to finance rehabs, including with handyman/contractor work contributions, so I like your creativity. Grossing $650/mo on a triplex?!? I guess I've just been in CA too long! lol Only back-yard sheds rent for that much in the Bay! I can really appreciate the value of having/training good help. I've been easing my handyman into collecting rents for me and some other minor duties, but hoping to have him take over also.

I also like your quote: "Don't let others decide your attitude."
Keep it up!