All Forum Posts by: Cory Mickler

Congratulations on your first sale Jeff!

I think you made the right choice considering that you made 109k profit immediately which is more then 400 a month profit was going to net you in 10 years.

Now you are in a place where you can move up and buy more expensive real estate which will hopefully rent for more.

I congratulate your achievement and I hope that your real estate career continues to be successful!

Hello Alesha!

First of all 21% cap rate is a great but always do your own calculations to be safe since realtors tend to inflate cap rates to look more favorable. Keep in mind that if you can get at least 10% cap rate then the property is still worth looking into but factor everything in including estimated repairs. I am assuming that the building may achieve 21% cap rate at full capacity so consider hiring a real esate agent to find occumpants and factor those costs in as well.

to get an FHA loan you need at least 640 credit score in all 3 credit score agencies. FHA loans are generally 3.5% but you should also factor in 6-12 months rent in case you lose your tenants as well as any immediate repairs and 10% for future emergencies.

You can also get loans from other companies such as freddie mac and fannie mae for as low as 5-10% down but keep in mind that they will charge around 20% interest rate so make paying them off a priority.

I also highly recommend that you look around the real estate market if you haven't already to make sure you are getting the best property available to you.

Good luck Alesha and best of wishes in all that you hope to accomplish!

You can replace the plumbing with Pex.

You be the judge of whether the properties are worth buying or give us a more specific idea of what the properties are looking like and what work needs to be done.

Id the properties need dry walling, etc it can cost a bit and I am assuming its in a bad location demographically but if you already have a house in the area then you know the location and you can check on multiple tenants at the same time and place for repairs and such

It really comes down to estimated cost to repair and estimated income value. Assume that the rentls will fetch the same price as your current rental and use that to see if you can get at least 10% profit within the first year if all the properties are occupied for 12 months.

Good luck! I wish you best of luck in all of your endeavors!

I would really like to update my SFR and put in a new railing around the porch since the current enclosure is rusting out but the fencing is cemented into the porch. can I remove the railings without damaging the porch or do I need to replaced the entire porch to cement new railings?

I would really like to update my SFR and put in a new railing around the porch since the current enclosure is rusting out but the fencing is cemented into the porch. can I remove the railings without damaging the porch or do I need to replaced the entire porch to cement new railings?

The cement steps leading up to the porch of my SFR need to be replaced. they have sunken into the ground and are starting to crumble. What is the best way to repair or rebuild the steps?

Would it be cheaper to demolish the building and rebuild or can this building still be refurbished?

You can take out the management costs since you don't need a manager if you already have a tenant and you only own a single property. You only need a property manager if you oversee 75+ rent-able properties or units.

now your only at 15k negative which can easily be factored out by increasing the rent 2-3% to keep up with inflation. your taking the biggest lost because you are renting to a friend but honestly I think its a good thing to do a favor when your tenant is already paying 75% of your mortgage and upkeep expenses which is much better then paying that out of pocket especially if you plan to one day move into the house.

Hello there Jose!

I find real estate to be stressful but then I remind myself that I do it because I love being involved with the whole process from fixing houses to renting and I do it for pleasure more then for financial reasons although I do hope it will one day be a profitable financial investment which it has in a small way.

I think we all find real estate to be stressful sometimes but it can also be rewarding.

Good luck and best wishes!

I recently purchased a house rehabbed the living room and water damage and now the house is ready to be rented out but how much should I rent it for? It is close to a grocery store,  school and a bar and and it is valued at around $50k and I am wondering what is reasonable rent. it has 2 floors 2 bed rooms a living room dining room and kitchen. The house is 1500 sq ft and it has close to half an acre of property. everything is brand new and finished. brand new stove and rerigerator. new sink toilet and bathtub. would $350 a month be to low or would $850 a month be to high? 

I have seen some similiar 3 bed 2 bath houses going for as high as 1500 a month without utilities or 1250 with with utilities. so i am assuming 850 would be in the ballpark of what I should charge for rent but I want the renter to also pay utilities so what would be a fair price?