All Forum Posts by: Kyle Galloway

That is great. Sounds like I need to add this into my lease. We have one tenant who mows once a month it seems and it gets pretty unsightly. I feel bad for the neighbors. How many inches do you request? I have no concept to what is reasonable. 

LaPorte and Michigan City. We have 3 rented single family homes, another we are rehabbing and will likely flip, and a final two unit closing in 3-4 weeks that we will rent. My plan is to give a company this 2 unit to manage as a "test." Our plan is to acquire several more properties next year and start to offload them on to a mgt company.

 I called Property Boss and the do have properties in LaPorte County. They are going to call me back with more info and details. 

@John Christodoulakis

Looking for a mgt company myself. Did property boss work out for you? Would love your feedback and any advice.

@Ray J. Never heard of charging for unkept yards/overgrown grass. Have you ever had to actually charge it? Or does the “threat” make the difference you are looking for?

@Sandy RL

What goes on at these Landlord meetings? Newer landlord here, looking to grow my real estate portfolio.

Thanks for the insight. I am still unconvinced. This property will be our lowest performer in terms of metrics simply because the value is high compared to the rent we can command in our area. It is easy to find a 50k piece of property and charge $800-900. This will be a 75k (invested) property commanding MAYBE $1,000. Worth 100k FMV. I'd rather have two properties at 50k each getting 800 each vs one property getting $1,000 each. Am I crazy?

Well noted on the "cost" of selling-A.G. closing costs and taxes.

My partner and I purchased a home two weeks ago. It was a great deal in terms of price and potential resale value. One of us feels that this is a house we want to rehab and then flip. The other is not so sure and is leaning towards holding and renting. We are close to begin rehabbing the inside-and how we rehab it(how nice we make it) really depends on what our plan is. Do we rent it or do we sell it? Here are the specs:

Purchase Price         $58,000

Rehab Cost              $15,000

Total Investment     $73,000

Median Sales Price  $110,000

Post-Tax Gain         $28,860 

As you can see this would be a huge cash gain for us. Our LLC is new and could use the cash. We have no intention of pulling that cash out of the business but rather would use it to continue investing (down payments, rehab costs on others, etc.) However-our business plan is to be a buy and hold investor-not a flipper. We want passive income. One thing we have going for us on this home is a 0% family loan not owed until January 2021. We should be rehabbed by the end of February 2020. here are the renting specs/metrics

Total Investment  $73,000

Projected Rent     $1,000

Cap Rate               8.97% (does not include capx. Includes 10% vacancy, prop tax, ins, interest, maintenance, etc)

1% Rule                 1.37%  

This house will have, after potential mortgage, a decent cash flow. The metrics above are solid. However, when compared to our other two rental properties, it has the worst Cap Rate and 1% ratios of our other two properties. We can do better, even in this hot market. Also-I am using our investment as the denominator for metrics-not the market value. The market value, see above, is much higher than what our investment will be. That leads to credence of selling IMO.

What is everyone's thoughts? Again-we do not want to necessarily be in the flipping business and want long term wealth through passive income-but this seems like a property that can be sold based on the potential sales price.