All Forum Posts by: Kristina Heimstaedt

Recent collections problems with good income, but food stamps included? You have a full financial picture and it doesn't seem to add up to me. Don't take on someone who seems to have made a turn for the worse despite inherent good value. It's never worth the risk.

To @Larry Turowski's point, trying to figure out how to structure the deal is probably of the utmost significance in your particular situation. 

Oftentimes what I see is that millennials might have good income (or will have good income hopefully in your situation), but they don't have the equity for a down payment. As a result, typically I see the parents provide down payment and fix up costs functioning like the equity partner while the millennial manages the project and provides their time. 

Obviously I'd suggest looking to get as many units as possible to either offset your costs or to get a return for your parents. In an ideal world, you and your wife occupy one unit and the remaining units pay down the mortgage and ideally get your parents some profit. Hopefully when you and your wife move out, you can split the profits with your parents. 

I'm sure there are a variety of ways to specifically structure the deal depending on the intricacies of your situation, but this is more or less how I would attack it.

Looks good to me. I'm a supporter of lowest interest financing today if I can earn a better interest on an investment. I think an alternative way to structure the concept is focusing on earning more as opposed to cutting/managing costs. It all looks good to me. Congratulations.

It's a very challenging job as it's like tile work, but more complicated because it's glass. Unless you can find a glass block to match, it's just never going to match. I have some as a wall in my home and I'm waiting for the day as to when I can smash it and install something else. Hopefully someone else has had a more optimistic experience than I have, but they just are a challenging product.

I think the biggest issue I see with PM is they don't always understand how you're thinking and what you want. It's a delicate balance to be in PM. However, I think they can be great for that boots on the ground access. It's challenging.

Zillow bought a company called postlets that would syndicate your listing to trulia, hotpads, zillow and more. The response is fantastic. The only one it doesn't reach is craigslist. Given that most renters don't use an agent to rent a place, Zillow Rental Manager is typically sufficient. 

@Isiah Ferguson as long as you get a HELOC and this is how you want to use your cash, seems fine to me.

Numbers look pretty stellar to me. Are your taxes really north of 2.5%? I know they vary state to state, it's just a higher rate than California (go figure). I might also see about getting a better rate on the loan. How is the rentability of the area given the 15 year tenant? I can appreciate the stability,but thats gotta move up in price. Looks good though.

I understand which way you're leaning and I accept that (as a leverage freak). However, please at least open a HELOC. There is nothing like having equity or access to it when you want it.

This sounds like you're assuming that the work will take an extensive amount of time between tenants if I'm understanding your question correctly. More often than not, I can turn a property in a weekend, a week at worst. This typically covers paint and whatever touch up I might need for x,y,z reasons. I also tell all of my tenants when they first move in that I expect them find a few issues with the property. I've never lived there, I don't know what the last tenant chose not to tell me. I once had a prior tenant kick a dishwasher door such that it wouldn't close and run. After calling the appliance repair man who said it would be costly, we just ordered a new one. Keeping the turn around time tight allows you to deduct these items from the security deposit. In California, I have 21 days to return a security deposit to my tenants. Keeping this turn around time short, I'm ablate better manage my costs and forward them onto the tenant.

I know that this didn't particularly answer the tax side of things, but hopefully it helps some.