All Forum Posts by: Mike Wood

@Michele Fischer I would be interested in hearing how you use collection agencies?  I also don't believe its worth going after the tenant, but would like there to be some sort a flag on their credit to warn future landlords. While I have not had the issues the OP has with the extent of damage, I have had tenants bail in the middle of the night with past due rent and relatively minor damage.  

Don't want to jack the thread, but this sounds interesting to me, and worth a few bucks to be able to warn future landlords.  I know if I saw that in the application process, it would be a complete NO.

Thanks everyone.  I guess I always think about closets being lighter than the walls, due to lack of lighting. But painting them the same color are the walls would make touchups easier for a turnover.

@Aron Teran Those term sounds great, especially since its a rehab. On my new construction loans, I am getting 4.5% interest only, 12 month duration, with 20% of total cost required as a down payment. Once construction is completed, I re-finance into a conventional loan, and those are typically 75% LTV in the 4.5% interest rate on a 30yr.

 Students are not a protected class, so there is no worries about discrimination.  You will probably market the units similarly to how you would for students, making sure they have features that longer term grad students look for in your area.  You can try and talk to the student housing at the college and ask about positing there.  The thing is, when students call, tell them they need to have verifiable income or grants to cover the rent.  Its highly unlikely that undergrads will have enough income or scholarships to cover the rent plus extra expenses.  Plus, alot of grad students live alone, so you wont have to worry about multiple lease agreements with multiple tenants. 

@Tom Forrest Are you living there - Yes. Did you know that it was a twelve month lease - Yes.  Should you have signed the lease as soon as you moved in - Yes.  

If you bail on your roommates, they would either have to find someone to replace you, or the other roommate will be responsible for your part of the rent.  
You obviously agreed to rent this place, you need to do the right thing and pay your rent.

If you want to move, find someone that will take over your rent and your roommates can live with. Otherwise, do what you agreed to do.

Unless your market is crazy expensive, you should be able to analyze the deal with both units getting market rate rent and be cash flow positive.  Multifamily cash flow much better than single family homes.  I would not recommend looking at C or lower neighborhoods just to get the cash flow. Remember that you need to live there and be a landlord there also.  My rentals are in B/C areas, but as I continue, I am focusing on better areas.  Dealing with marginal tenants in C or D areas gets old.

Remember that you are getting to live in an area that want, for less than it would cost for a single family house.  Just cause you are not living for free, does mean that its a bad deal.  And when you decide to move, you can keep the duplex, rent both sides with good cash flow, and really start being a real estate investor. 

@Chris SonesThere are federal guidelines related to maximum of 2 persons per bedroom (adults, I think), but it is not a universal rule/law.  I know of plenty of landlords that reference it with perspective tenants.  I don't think that it will cause you any issues with using it as part of your screening process.  
But I am not sure how it works with children and that could cause you some concerns with discrimination.

For all those DIY landlords, what color/sheen do you use on the inside of your closets?  

For my rentals, I take care of maintenance and unit turnover between tenants (cleaning, repairs/patches, paint touchups, etc). On our units (which are multifamily, so our turnover is higher than SFH), we use the same paint colors, using only three color/sheen's in the interior, an beige eggshell on the walls, gloss white on the trim, and flat white on the ceilings and closet walls.

The problem is that every time I turn a unit over, I have to completely paint the inside of the closet again, as the walls are scuffed and marked up.  I think this is due to using flat white ceiling paint, as there is no way to clean the paint on the walls.  

In contrast, the eggshell on the walls, I am able to wipe down where needed, and only have to touch up areas that have nicks, dark marks, etc.

I do like to minimize the different colors/sheens I use, to avoid having to have so many different paints to keep track off.  I was thinking that maybe changing to an eggshell white might help. Or it might just be a cost of doing business.

@Greg Rusianoff While I do not invest in tax liens, your information is both fascinating and scary. I would have never believed that a community feature like a golf course would kill property values like that. Wow. Do you know if Bank REO properties are forced to pay the dues, just curious.

You learn something new everyday. Thanks.

@Justin Fox I am not a tax expert, but what I have done is taken the total construction cost (including all the nuts and bolts, less my labor) as my basis.  This included land costs, permit cost, survey costs, construction costs (including GC fee), materials, etc.  

I based the start of my depreciation as to when I have the Certificate of Occupancy (or equivalent) and am actively trying to rent the property.  I finished a house and got the Certificate of Occupancy on 12/30, which allowed me to start the depreciation for that year.  

Again, I might not be correct, so you may need to ask a tax expert.  This is just what I have done.