All Forum Posts by: J. Martin

I'm jealous!

Congratulations! I'm only 5 years in to my "9-5" career, so hopefully I can cut it out in the next 15!!

I use coin-op washer and dryer in the laundry room of my 4plex. More of a convenience item for the tenants at first. But pulls in about $100/mo in quarters w/ small marginal cost ($10-20). All my master utilities, including all water for all units (plus laundry) are just over that, so it goes a long way in offsetting master utility costs. More than pays for itself. $2/$1.50 is normal in my area at laundromats. Not sure about amortized capital costs.. We'll see over time. Bought new large machines for about $1700 I believe (delivered, w/ heavy security covers for coin boxes), so they should pay themselves off in about 2-3 years. With the convenience to tenants (and hopefully less turnover/better rents), I would take a much longer payback.. Gas dryer is much cheaper to operate than electric.

Congrats!

The numbers baffle me, being from CA..

But it's just a different world out here.. Congrats!!

1) greed
2) childhood issues
3) #1 & #2)

HomePath accepts at least up to a 3% sellers credit, so you could have not only lowered your net purchase price, but brought 3% CASH to the table - to cover your closing costs (or consider it a 12% downpayment..)

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."