All Forum Posts by: Kevin Nichols

@Paul Ewing Rent levels $275 to $575 in that area. 

I'm thinking a used washer/dryer will bump it up $25/month.

Yes..appliances are in.  (Fridge and stove)  Not many 2/1s available now, but from what I see, same..fridge and stove.

I was thinking about buying a washer/dryer from craigslist, which I think would be a huge plus.

I've just bought my first duplex and will close Dec. 1. I found out this week that one of tenants will not renew their lease on 11/30.  So, this is a chance to get into the unit and spruce it up.

The current owner added laminate hardwoods and painted previously. It's a 2/1.

It's about 750 sq/ft and goes for $475/month now. 

Any suggestions for quick updates that will bring more value?

I would investigate what other rents are in the area and the vacancy. There are still a lot of questions be answered. HOA fees....seems iffy. Definitely need details on that. You should get rent details from other sources than the seller. Craigslist, Mapliv.com, call rental signs, etc.

Make sure you look at comps in the area. What type of area is it? A, B, C neighborhood. Look at the current length of leases and quality of the tenants. Are there any deferred maintenance issues right now? If so, you may be dropping money immediately.

You need to get a better definition of your HOA fees. What does "repairs" and "property management" cover?

Also, you need to budget for capital expenditures. Eventually you'll need to drop $5K for a new roof, etc. The CapX could be $500-$600 per door, per year and should be added to a separate account.

Other than that, it looks like a good deal.

@Joe P. 

 $3K is general budget for minor painting, deferred maintenance stuff.  Owner put a new roof on this year.

I plan to manage it myself. It's 3 blocks from a college and in an "A" neighborhood. Though, it was built in 1964.

No snow removal...in the South.  :)

Yes...I'll end up doing lawn care, but may sub that out. 

Rents are fairly cheap...$535 per unit.

I'm closing on my first rental property on Dec. 1. It's a duplex. One of the tenants this month has extended her lease for 1 year, but the other is leaving Nov. 30.

So, what is the best process to vet potential tenants? 

Also, the unit doesn't have a washer/dryer, but has a w/d closet. I thought about purchasing a washer/dryer and installing to incentivize.

I know December is probably the worst month to start the process, but realistically...the vacant unit just needs some general clean up. It appears both tenants were excellent.

Thoughts? Suggestions?

Kevin

Thanks @Steve Vaughan I like the idea of specifying a number. Will do.

The closings costs are only estimated. I'm sure that will be lower than $8K. I much rather over budget.

Thanks guys.  I'll end up starting low on the offer...probably $160K and $180K was the absolute max I would go.  We may just offer a cash deal. I'm not sure yet. 

Kevin

if you plan to get mortgages on your properties, lenders will lend to individuals and you'll need to deed the property into the LLC. The person will still have to personally guarantee the loan, even if it's in the LLC.

The formation of the LLC only really protects members personal assets in case of lawsuits against the LLC.

The tax preparer for your LLC will provide a K1 statement for each member that will flow to their personal taxes. If there's an issue where a member doesn't properly prepare their taxes, that doesn't affect the LLC.

Thx,

Kevin