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All Forum Posts by: Kevin Barnard

Kevin Barnard has started 7 posts and replied 41 times.

Post: New tenant is really late

Kevin BarnardPosted
  • Rental Property Investor
  • Los Angeles
  • Posts 45
  • Votes 50

@Jill F. The stories I've received are not really adding up . First he is the sole provider for his wife and daughter so I was cutting him some slack when why PM said his baby was sick and he missed work . Now thinking um his wife stays home . Then I got partial payment and told his hours were cut . Then told he is have to working overtime and will be paid in full with late fee by the 25th . Then he finally paid on 28th with $150 towards next month . Now says he can't pay till the 12th . I think he just is spread to think for his income or knows he can pay late and has rent as last priority .

Post: New tenant is really late

Kevin BarnardPosted
  • Rental Property Investor
  • Los Angeles
  • Posts 45
  • Votes 50

@Greg Scott, great reply . I will inform the PM the machine will be in full affect . 

@John Underwood. Agreed . It's very new to me not managing my investment personally . I see I have to train management and tenants from here out .  

Post: New tenant is really late

Kevin BarnardPosted
  • Rental Property Investor
  • Los Angeles
  • Posts 45
  • Votes 50

@Watson Hilaire, I agree. This is my 2nd property manager and I feel they are much better than the previous . Not too many options in Sebring. This will be strike 2 for the new tenant as well.  Appreciate the response . I recall here stating his hourly wage an hours worked, but indeed I will need to see pay stubs and bank statements in the future . Have a blessed day 

Post: New tenant is really late

Kevin BarnardPosted
  • Rental Property Investor
  • Los Angeles
  • Posts 45
  • Votes 50

What's up BP been a while. I purchased a triplex OOS in November . Two of my inherited tenants always pay on time or within a few day . Now the 3rd cost me a bunch of money by leaving with no notice and trashing the place . Got it all fixed up and leased.

New tenant moved in , paid rent in full and deposit . A month later wasn't able to pay full rent balance including late fee until the 28th. He was in communication with property manager the entire time and made partial payments . Now here we go a week later next months rent is due. We give a grace period of 5 days . On the 5th day he said he can't pay until the 12th .  3 day notices are posted on the 6th which only gives him till the 9th . My property manager asked how I want to proceed . Eviction will likely lead to more cost on my end if needed. 

I'm worried this will continue over and over and the more I let it happen the more it is likely in the event of an eviction a judge will say " you have always let him pay late "

Property is a triplex in central Florida, a small town called Sebring .  I really have no compensation for late payments as my property manger takes the late fee. 

I emailed property management and told them to let him know it's unacceptable and payment is due in 3 days or vacate the premises. Also I'm not sure she has solid standards for verifying income which I stated needs to be addressed in the future . 

My question is what would you do? Make him leave or accept rent on the 12th  ?

Post: Is my HELOC interest deductible for 2018?

Kevin BarnardPosted
  • Rental Property Investor
  • Los Angeles
  • Posts 45
  • Votes 50

Not that I'm aware of. The new wording of a heloc states must be used to improve the property in which the loan was originated from. 

Post: So what's holding you back?

Kevin BarnardPosted
  • Rental Property Investor
  • Los Angeles
  • Posts 45
  • Votes 50

Whats holding me back is networking. I don't do enough of it . I did close on Duplex in December of 2013 I've house hacked since and Triplex in November of 2018 as my first OOS investment . I'm torn between finding an investment or buying my wife a SFR as we now have a 2 year old and another due in August . I live in Los Angeles for a SFR is going to hurt the wallet pretty bad . I do have a commitment to trying to close a deal a year at least so guess I have 8 months to keep searching . My next step is trying to pin down a market . I invested in central Florida for first OOS deal but kinda feel that's too far . Gonna go visit Arizona and try to build a team and pin down an area as I like that its much closer .

Post: 20-unit Multifamily Renovation in Koreatown, Los Angeles

Kevin BarnardPosted
  • Rental Property Investor
  • Los Angeles
  • Posts 45
  • Votes 50

Awesome post , your post are always inspiring . Would love to get to know ya . 

Post: Have you ever not been to a rental property ?

Kevin BarnardPosted
  • Rental Property Investor
  • Los Angeles
  • Posts 45
  • Votes 50

I purchased a triplex in Florida from California, I've never been to Florida. Technology is pretty sweet now days, I've seen the inside and out, signed the leases, seen the repairs and collected the profits all from my phone . I've owned it since November. Already fired a management company , had vacancy, hired  better management , turned over the unit and  filled the vacancy . I did a lot of research prior and continue to do so and build better relationships. It taught me a lot and happy I did it . 

Post: Doing the math: Cashflow, Reserves, Mortgage

Kevin BarnardPosted
  • Rental Property Investor
  • Los Angeles
  • Posts 45
  • Votes 50

Here is the Bigger Pockets Calculator for above mentioned deal 

Post: Doing the math: Cashflow, Reserves, Mortgage

Kevin BarnardPosted
  • Rental Property Investor
  • Los Angeles
  • Posts 45
  • Votes 50

Bigger pockets offers a calculator to use 5 times for free. Unlimited times with a pro membership . It can be found here 

https://www.biggerpockets.com/buy-and-hold-calcula...

Here is a link to running some numbers 

https://www.youtube.com/watch?v=T_7vhsSBi7c

I personally have purchased properties using $115 per door on small multifamily . I use 8% vacancy for that area in calculations ( I have yet to have a vacancy ) I save 5% for normally repairs , 10 % for Capital expenses pay 8% for management. My profit numbers of $115 a door are after all debt, liability, repairs and reserves. I put 25% down . Ends up being a 7% coc return before tax benefits . The rents are below market and profits will go up and debt will go down. It all depends on what you are comfortable with . Sure I'd love to 20%+ returns and I'm sure I will as I become a more advanced investor . For now I'm happy to have closed on 3 more doors rather than waiting for the perfect deal on paper. Hope this helps a little