All Forum Posts by: Katherine S.

@Sam Cherry Thanks so much for this post.  Do you know how much the tenant will be granted for rent?  Will the entire amount that we charge the tenant be covered, or will it be held to the amount the local agency finds is appropriate?

@Brian Burke  This is an old thread, but it touches on a similar situation we are facing in a buy and hold strategy. 

I get allocating the depreciation to the partner who provides the money to fund the deal.  But how is the rest of the income (or losses) allocated?  If we were to be the partner handling all the operations and finding deals, how would you suggest we be compensated?

Cute house!  

My advice:  lose the front door shutters.  I couldn't find the door, thinking it was a window.  The shutters look fine to me; I'd keep them that color unless they need new paint.  If you have to paint, I would not make them the same shade as the roof, but a shade or two darker of the same color (which is what it looks to be now).  I think the door would be fine white.  We have gone through this same question about a flip we're finishing, and ultimately decided that the buyer can paint it a different color if desired.

@Jody Schnurrenberger Thank you for your great list and for starting this interesting thread!  I am going to keep this for future reference.

One thing I am insisting on going forward when we renovate our rentals is to spruce up the laundry area.  If it is in the basement (which all of mine are), I want it to be painted white, floor tiled, with a nice sink and a cabinet or two, with a counter top and some shelves.  Oh, and some hanging rods.  Fancy laundry rooms are really popular right now (ever look at Houzz?!) and I want my rentals to stand out.  Most others have the old cement set tubs in a dingy area and a naked hanging bulb with a pull string.  This doesn't take an enormous amount of money to do. 

The other thing is to really think about curb appeal.   Simple, easy to care for landscaping, but fresh and not over grown.

@Anthony Smith I don't mean to quibble, but getting 100% of your initial investment back is not the same thing as 100% profit.  It's not profit at all, it's a return of principal.  Profit is what is left after all your expenses, including your return of principal, are deducted from your income.  I only mention this because you said you want your emails to stand out, and that is a mistake that some sophisticated investors might spot.  But your quick return of principal allows your investors to enjoy owning an income stream into which they have virtually no money invested.  Good luck!

You'll never be at 100% profit, but I think you're looking for the cash on cash return. Once you get all your cash out, you'll be dividing by zero, so your CoC is "indeterminate". Which I take to mean "really darn good."

I think of it as getting back the seed corn.  If I am forcing appreciation through improvements to the property, I'd like to get it back at 6 months when it gets (re)financed.  If I buy a turn key property, I would have to rely on appreciation, and that could be a few years.

I think the house looks great.  I especially like the daylight part of the basement.

My only suggestion would be to go pull out that overgrown yew, limb up the tree, have the leaves blown out of the pachysandra and post a new photo.   I also hate seeing old set tubs...updating the laundry area is something that might be important to the buyer.

Good luck.

We've only just started our first reno and already I'm buried under piles of samples and brochures!  Flooring, counter tops, cabinet doors, hardware, and paint chips and some things I can't even identify.

Anyone have some good methods for dealing with this madness?

Our rent is due on the 1st, late on the 2nd.  My PM typically has the money in my account by the 4th.

@Megan Hirlehey  You should check with your lender about the variable rate.  The one I have applied for is variable in the sense that they could increase the rate some time during your 10 years, but that my rate is locked in on the money I borrow at the moment I draw funds.  I could be mistaken about this, but that is what I was told today.