All Forum Posts by: Justin V.

@Ramon Flores @Dorothy Williams

I second Ramon,

House hack your way to cashflow. Find a low % down loan for multi family. Rent out the other units as well as take on roommates. The more bedrooms the better. Look to see if you are making what you should be at your current w2 job. The more you can grow your income and reduce your living expenses, the faster you’ll be able to ramp up.

If 3.5% down is a lot, look hard at how to improve your current w2 income and lower living expenses.

I wouldn’t go looking for investors until you have done it and have systems in place. I was able to get 4 family and friend investors after my 3rd brrr, but the other 20 I approached weren’t so keen. I doubt any would have invested when I was just starting out despite having been in construction for 6 years previously.

-Justin

@Alexandra Sales

1) it can make great sense to invest outside your location. If your area won’t cashflow and you don’t plan on staying, no sense in making it your farm.

2) Reserves are important and becoming more of a big deal at the moment. They can keep us from making dumb decisions. I’d keep analyzing deals in your target market and looking into more favorable financing. You might find a deal where you’d end up with adequate reserves with a favorable loan you weren’t previously aware of.

@Mariusz Lewandowski

I’d probably try for a 1 year renewal at the current rate and see what happens. Send them the new lease for signing. They’ll bring up terms if they feel the need.

-Justin

@Jack B.

A few thoughts:

Did your tenants wear shoes in the property and we’re they dirty? If you track in dirt on sneakers there is your sanding action. Any photos of the property while occupied should help determine this.

Any pets? Pacing animals can do a bunch of damage. Also dog water/food areas result in lots of heavy cleaning or animal licking too which eats finish. Dog cleaning up after couch eaters is a thought.

Who did your floors previously? They might suck. I’d have them out and a couple of their competitors to get a better feel for what happened.

$2 per sqft is what I’m charged in my area for a sand down and refinish. $1 for a buff and add a coat.

How do you depreciate floors? I think I say they should last over 10 years between refinished, but I’m new to this.

@Nicholas Schwarz

Natural (market) appreciation/depreciation mostly does what it wants based jobs, area growth, economic factors, etc..."

You should have an idea of how much you can force appreciation at the “buy” based off higher end comps in the area which you are striving to be like.

I think Of appreciation as Just luck mostly, but I’m far

From an expert.

-Justin

@Dre Carson

Go get it DC! And good luck out there. Family and wanting more time with our sons is why my wife and I invest. Figure out your freedom Number and what it will take to get there and then plan it out and execute.

-Justin

@Jane S.

Good other comments, but I’ve heard some states/localities don’t allow that much of an up-front rent payment. I heard professional tenants will offer it to get into a place then report the illegality, forcing the LL to give 11 months back and then they stop paying rent. Not sure on accuracy, but something to look into.

@Susmitha Pranitha

I also wouldn’t ask the tenant. Just ask if they’d like to renew and let them know if they’d like to do so, rent for the next year will be $xxxx which is an increase of $yy. Be prepared with a min allowed increase if they ask for less of an increase. I like the “what are you proposing?” Followed by “ok, let me think about it and I’ll get back to you.” Technique.

@Susmitha Pranitha

I agree with Bjorne. I wouldn’t raise rents right now with the virus. A number of people are down, so probably good not to kick.

I also usually don’t increase the first year, but I typically list at the 75th percentile to balance a good price with less showings.

How much is market rent this year?

I’m typically pro raising rent a couple percent every year, but right now feels like bad timing.

@Yi Chung Chen

I figured I’d chime in.

In my Minnesota market installed windows range from 550-1000 each.

I would image furnace with ac will be 8k plus the cost of ducting.

Roof sounds in the range for asphalt shingles. Maybe 15-25k.

Raising the ceiling is a wild card that I imagine would be very expensive.

-Justin