All Forum Posts by: Kevin L.

@Michael P. Yes, and they cash flow very well.

Using a mortgage to leverage your investment provides a higher ROI. You could then use your cash to purchase other properties. Depending on your RE goals, this could be the better route.

INREIA meets on the second Tuesday of every month. Lots of great information and networking opportunities here! Check out some more info on the website: myinreia.com

The fastest investors can close in under 10 days with a cash purchase. A more standard closing time is about 30 days. (from my experience)

@Barri Griffiths great question!

I am working on a deal right now and we put together current financials AND a proforma for the banks, but banks really only care about the current financials (although it does give them more confidence to see that you have a plan for the future).

Have a hard target in mind for your ROI on this type of deal. If your projections hit your required ROI then it is not unreasonable for you to buy the property.

The most important thing (in my opinion) to look at is job growth. Job growth leads to population growth, which leads to a healthy and sustainable real estate market. 

I had this same problem. All I did was send a text saying it wasn't acceptable (especially because on the application they said they were non-smokers). A couple days later they had an ashtray on their porch. No problems since.

@Ryan York an easy way to calculate your "break even occupancy" as a percent is: 

(operating expenses + debt service) / effective gross income

Its never ideal to inherit tenants, but it shouldn't be a deal breaker. I have had good experiences inheriting tenants, but I have heard a few stories that ended in evictions. Make sure you get a copy of the leases at least. There are tenant rights, but you could always buy them out of their lease or have them re-apply when their lease is up so you can do your formal background check. 

You can take the damage cost away from the security deposit. Some people will even do a separate pet deposit instead of a pet fee/pet rent.