All Forum Posts by: Julie Haveman

Wondering if other investors keep the capex money in a separate account each month until you need it, or use it for other purchases and just cash flow as things come up? We have cash reserves as an emergency fund also!

@Mark Jager,

My husband and I have been talking about it for years, we saw a couple of duplexes on 20th in Jenison for sale by the same owner. We went thru them and just decided to jump in. The previous owners were very kind and gave us copies of leases, applications and a bunch of other paperwork.  We choose duplexes because they seem to cash flow better than single family houses.  We have all of them sharing lawn/snow and covering their own trash.  We have run numbers on a few four plexes and it seems they get a little less rent, plus owner quite often pays trash, snow, and lawn, so we keep going back to duplexes.  

I did just see a 4-plex on Taft in Wyoming for $115k on Craigslist. That would cash flow if you want to look into it. 

Welcome Mark, We have 2 duplexes in Jenison and several more in Wyoming and Kentwood. Always glad to see other Michiganders on the site! We have only been doing REI for a couple years, but let me know if I can answer any questions!

Is there a coin operated laundry in the unit or a place to put one? This can also bring in extra money!

We have purchased 2 different properties that the owner had collected a pet fee on. The were not on the initial HUD statement, both times I requested them and received them!

We have a couple of times and have not had any problems! It's not a bad gig to have the check direct deposited into your account every month!

Originally posted by @Benjamin Blackburn:

@Julie Haveman

Hello Julie, I have a question about Section 8... I saw that you said it was great.  Would you recommend for someone who is just getting started/looking for their first deal, get started with a section 8 property?  I'm assuming the cons to a section 8 are mainly just that they are typically in not so good areas and security/maintenance/safety might be issues.  

Any input would be amazing!  Thank you!

and good luck @Andrae Raymond, it seems like a good deal from the looks of it... if all the expenses are accounted for of course like a few mentioned.

 Section 8 folks can take their voucher and use any place in the county. We have some very good neighborhoods with section 8 people in them.  What I like is direct deposit into your account and they almost always pay their portion on time because they don't want to loose their funding. You don't need to find a section 8 property, just find a good property and advertise your vacancy as accepts section 8. 

Section 8 is great, it does take a couple months to get the direct deposits set up into your accout, so be prepared for this.  At least that is the case in Michigan!  Also look at when the rent was last raised.  

Asking price was 125K

Contracted for 110K

Down payment was 25%

Taxes around 2K

Insurance 600/year

We also self manage, 2 beds/1 bath each side. We are raising rents to $700/side.

The rents have not been raised since tenants moved in between 5 and 6 years ago.

I think you have good cash flow, just keep an emergency fund in case anything bigger crops up like roof or furnace.

Hi Andrae,

We own 5 duplexes and just put 2 more under contract. Our numbers on one of them are very close to yours.