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All Forum Posts by: Khari F.

Khari F. has started 13 posts and replied 149 times.

Quote from @Matt K.:
Originally posted by @Davido Davido:

@Maura O'Connor  In regards to using the Wi-Fi in your tenant’s rental unit, why not set up and control the property Wi-Fi yourself?  

Controlling the Wi-Fi in your rentals provides many advantages to a landlord. It does take time and effort to set up your own Wi-Fi Single Family or Multi-Family Wi-Fi system, but if properly set up, the system can thereafter save a landlord time and effort in multiple ways. A landlord-controlled Wi-Fi system can also become another source of revenue for the landlord by adding a small ser-charge to the landlord's actual costs (Especially useful in Multi-family buildings or rent by room housing).

It is also possible that Landlord controlled Wi-Fi can saving money for tenants. A knowledgeable landlord can often find and/or negotiate a better month to month price for unlimited broadband internet service, while saving each new tenant the cost, hassle and interim downtime of acquiring new service.

The advantages of controlling your own Wi-Fi, in addition to monitoring smoking, are the ability to control and record property access via Wi-Fi controlled and Wi-Fi programmable entry locks and gate and driveways monitors. Control of the property Wi-Fi also permits recording security cameras outside the building (and inside common halls, storage areas etc.). You can set the timing of outside yard, perimeter and building lights. Control of your Wi-Fi enables the landlord to create a direct audio and/or video intercom from your cell phone to any location on the property (similar to or with a ring doorbell). You can receive automatic notice when an unusual number of people are on the property (https://www.partysquasher.com ). You can know and record when, for how long, and how much energy is used by the house heating system. You can automatically warn you tenants when their cooking is to smoky and when CO2 levels are rising. You know, receive notice, and automatically record every time a house smoke or CO2 alarm goes off. (https://nest.com/ )

You can also set up a network attached storage device to create tenant accessible files for your property manual, appliance manuals, how to manuals (for septic systems, wood stoves, property photos, tenant lease documents contact numbers, neighbor information, shopping info, utility info etc.) -files that you can update, change, add or delete from anywhere; and you can monitor in real time the power consumption of the entire property $50 to $350 plus install costs (https://www.postscapes.com/Wi-Fi-home-energy-monitor-neurio/ ) ( https://www.bluelineinnovations.com/ ). One whole house energy monitor can identify, record and report in real time the energy consumption of pretty much any electrical device on the property $300 +installation (https://sense.com/ ) ( https://www.schneider-electric.us/en/home/smart-home/wiser/wiser-app/ ). For example with the Sense energy monitor, a landlord can tell when, if ever, and for how long, a vacuum or carpet cleaner is used, when a garbage disposal, water heater, well or septic pump runs. When the home is occupied or when it is vacant. When, if ever, almost any electrical device is used (It does take some training/set up of the software app.

Alternatively, it is possible to separately monitor and accurately record in real time each individual circuits on the Property $1400 ( https://shop.dentinstruments.com/products/powerscout-12-multi-circuit-power-submeter?src=sidebar ), and or to monitor the electrical consumption of any individual appliance, outlet or switch $20+ (https://www.topgreener.com/ ).

It is also possible to use Wi-Fi to automatically and remotely turn your rental property water on/off, to monitor your properties for leaks, frozen pipes, to submeter and record water and or gas usage and know if there is a leak even before your tenants know $70 to $300 ( https://www.phyn.com/
https://getpani.com/
https://www.honeywellhome.com/en/products/water-alarms
https://try.flumetech.com/smart-home-water-monitor/
https://www.kickstarter.com/projects/azapps/osiris-the-65-smart-water-monitor
https://meetflo.com/
https://www.flumetech.com/

Wi-Fi Gas Meters, https://waviot.com/iot/solutions/smart-metering/smart-gas-metering
https://www.ekmmetering.com/collections/gas-meters
https://www.flonidan.com/products-and-solutions/smart-gas-meters

In my view, there are a lot of advantages to Landlord controlling and sub billing the Wi-Fi system in his/her rental units. Knowing when someone is smoking on the property is just one.

 All of this is one power outage from being a major headache ... And now your an IT person vs a landlord.

Im sure it makes sense, probably in a more hands on type rental like short term rentals...but for most landlords it's overkill.  

I want as few things in my name for my rentals, let the tenant be responsible. Reason being when something goes wrong and it will...they can call the service provider and not me.


 đŸ˜‚

Post: First Flip: The Education from Hell

Khari F.Posted
  • Kissimmee, FL
  • Posts 150
  • Votes 27
Quote from @Richardd Barran:
Quote from @Khari F.:

@Richardd Barran

Whats an escalation clause? Did you hire an attorney to prepare draw schedule and contract?

Great Question!


An Escalation Clause, not my definition, but one I agree with:

An escalation clause, or “escalator,” is a section in a real estate contract that states that a prospective buyer is willing to raise their offer on a home should the seller receive a higher competing offer. The clause will state how much more the buyer is willing to pay than the highest offer and their spending limit. Essentially, escalation clauses offer buyers protection if other potential buyers outbid them. Took it from this link: Escalation


So here's a simplified, applicable version of this example:

1. My realtor finds a great deal on the MLS. Let's say the property is listed at 50k and ARV is 100k.

2. I run the numbers and make sure it makes sense. I buy at 70% - repairs. If our price is not too far from that, I schedule a time to walk the property.  

3. I walk the property and liked it. 

4. I make an offer. 

Escalation Clause:

My offer is 35k with an escalation clause to 45k. 

That means 45 is the max I am willing to pay. If this reaches multiple offers, my offer will still be higher than other offers until it reaches 45k. 

This is awesome for MLS properties because I promise you, your eyes are not the only one who sees this property.

There are drawbacks to this, but I love using this strategy for deals we find on the MLS.

Do you request proof from seller for higher bid?  If seller knows in advance. They just have someone bid up? * great read. Thanks

Post: First Flip: The Education from Hell

Khari F.Posted
  • Kissimmee, FL
  • Posts 150
  • Votes 27

@Richardd Barran

Whats an escalation clause? Did you hire an attorney to prepare draw schedule and contract?

Post: Making adjustments to my Comp properties

Khari F.Posted
  • Kissimmee, FL
  • Posts 150
  • Votes 27
Quote from @Nathan Gesner:
Quote from @Jared Hottle:

...and always remember that prices fluctuate. The price of a new bathroom in 2021 was significantly more than 2019. It's important to keep up on market trends and adjust accordingly.



 What resources do you recommend for following market trends?

Post: The Abandoned Flip Home

Khari F.Posted
  • Kissimmee, FL
  • Posts 150
  • Votes 27
Quote from @Meaghann Valencia:

Investment Info:

Mobile home fix & flip investment.

Purchase price: $32,000
Cash invested: $22,000
Sale price: $155,000

Vacant and abandoned manufactured home located in a 55+ community, inherited by 13 separate parties.

What made you interested in investing in this type of deal?

The sellers came to me not knowing what to do with their home. Upon entering I knew immediately it would have a hard time selling on the open market. There was vandalism throughout the property and sellers were not local so they had zero interest in investing any money to increase the homes value. This home needed to have it's "life" put back into it. You could tell the home was well loved at one point but that it had simply been forgotten about by this who inherited it.

How did you finance this deal?

Cash.

How did you add value to the deal?

MLS comparable and public record.

What was the outcome?

We gutted the property from top to bottom with all new plumbing, and electrical. It turned out beautiful. Waterproof flooring, apoxy countertops, new appliances and vanities. Even the landscaping. It looked like a home again.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Myself being the real estate agent - which is fabulous!

Which flooring do you recommend? 

Post: Laundry Room Security

Khari F.Posted
  • Kissimmee, FL
  • Posts 150
  • Votes 27
Quote from @Bruce N.:

Hi,

I'm a landord with some small mostly student tenants multi unit buildings.  I've had some break ins in my laundry rooms and machines have been damaged by thieves going after coins.  The laundry machine vendor WASH takes coins or electronic payment so I'm not sure how successful the thieves are, but I still end up with a large gap in service.  Tenants sometimes prop the door open so they don't have to use a key.  I've installed covers over the latch portion of the lock and plan on putting in stronger door closers.  


I'm wondering what others have done in similar situations to discourage this?   

Thanks,


Bruce

Would cost to purchase electronic key pad make up for repair costs and coin theft?

Post: Duplex House Hack Potential

Khari F.Posted
  • Kissimmee, FL
  • Posts 150
  • Votes 27

@DeAndre Mason

What is/was it renting for? What’s the interest rate?


Post: First investment property

Khari F.Posted
  • Kissimmee, FL
  • Posts 150
  • Votes 27
Quote from @Tyler Ellis:

Investment Info:

Condo buy & hold investment.

Purchase price: $175,000
Cash invested: $6,000

This is my first investment property. I've been living here since I closed on the property back in Sep 2020, right before the market spiked down in South Florida. The original plan was to live here for a bit while I saved some capital for my next investment property but may now be open to 1031 exchange it into a bigger investment property, like a multi-family. Unit is a 2 bed 2 bath, 1,200 sq. foot condo in Sunrise, FL.

What made you interested in investing in this type of deal?

Good location near schools, list price was reasonable, kitchen/dining room/living room renovated recently but still had some other rooms/features that needed some work (master bath, windows, etc.).

How did you find this deal and how did you negotiate it?

Real estate broker. Listed for 185k and accepted offer for 175k.

How did you finance this deal?

8.75% down + 3.25% conventional

How did you add value to the deal?

Replaced every window in unit with hurricane impact windows, repainted. replaced light fixtures, replaced water heater.

What was the outcome?

Still living here.

Lessons learned? Challenges?

None yet.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Probably wouldn't recommend any of them to be honest.


 Loan required year of primary residence for the low down?

Post: Being transparent with a homeowner about wholesaling their home

Khari F.Posted
  • Kissimmee, FL
  • Posts 150
  • Votes 27
Quote from @Scott E.:

The wholesale contracts around here are written with language that says "and/or assignee" which just means "I will be your house, or whoever I assign this contract to will be buying your house." I'd imagine similar language is used in your area.

Regarding the transparency, you can just explain to them that either you will be buying the property, or one of your partners will be buying the property. You can share that you have a large network of investors that you work with on deals, and often times you pass deals off to these other investors instead of doing the deal yourself.


 I would be concerned about being called out if i didnt have proof of funds. 

Quote from @Ricardo S.:

@Walter Correia

The thing is with refinancing these day’s, lenders tack on pre payment penalties of 3-5 year terms. So if rates come down and you want to refinance again you’ll have to pay a fee out of that “equity” to do so.

Something to consider.

Refinancing is considered Pre payment?