All Forum Posts by: Matthew Dunn

Dear Fellow BP Community, I'm a new landlord and recently served one of my inherited tenants a 30 day vacate notice as I'm doing substantial improvements to the apartment. She just left the property on Sunday and I did the walk through to assess any damages and immediately was hit by a very strong smell of cigarette smoke. Her original lease which I inherited clearly states no smoking was permitted and when I took on the property in May I issued her my rules and regulations, which she signed, that also stated no smoking. I have her $500 security deposit and she is very eager to get it back in full. The smoke damage is quite substantial with nicotine staining on the ceilings, walls, and AC vents. I'm quite sure the AC system will also be full of contaminants from the smoke. Carpets I'm replacing anyway, and new paint throughout, but I think the walls will need a special cleaning before any new paint can be applied. The property is in FL.

I'm pretty sure the $500 won't even cover the cleaning costs and AC treatment. But how should I document this and is there a specific method of capturing this damage so if she should decide to go after the deposit, I'm fully protected?

Thank you!

Originally posted by @Robert Curls:

Hi Chet,

I have a great agent in Pinellas, he'll need a recent wind mitigation and 4 point inspection and if you want flood insurance you'll need an updated elevation certificate as well (whoever is doing your survey can usually do this too.)  I'm with several others on here, get an umbrella policy that will cover you for liability up to $1m.  This is more valuable than $1M on the home as it will cover you in more aspects (ie auto accident).  From what I've been told you'll need a minimum of $300K of liability on all of your properties as well as high liability limits on your auto policies.  I'll PM you my agents contact information

Rob

Hi Rob,

I'm under contract on my first 4plex in Tampa Bay and am looking for recommendations of landlord insurance?

Many thanks!

Matt

Hi Folks,

I noob question here, I am just starting out with buy and hold rental property acquisition. I have been attending my local REIA which has been excellent so far and I am in the process of designing my business cards. Question is, since I'll be a future landlord as well as an investor do you recommend placing my direct phone number on my card since providing my tenants my card I feel shows professionalism. But equally I hear giving tenants ones direct number is not recommended.

I have a google voice number I can use, but since I'll be collaborating with other businesses such as wholesalers and other contacts through the REIA I felt perhaps my cell is more appropriate for that.

Thanks for any feedback.

Matt

Dear BP community, just wanted to let you all know I'm still looking for a contractor that can help me with this interior wall just south of Sarasota in North Port. 

I've done a contractor search through the member community and returned little here in Sarasota. 

Thank you

Hi Stephen, thanks for your reply! 

At this point I'm looking for a qualified GC that can help identify the permit requirements of the wall. If indeed the property requires a wall, then it would be great if the GC has the skills etc to do the work to the required standard.

Many thanks!

Matthew

Hi, I am looking to place an offer on an REO duplex in North Port (Sarasota County, FL), but there is an open permit for the dividing wall between the two units. The story goes; the wall was taken down some years ago, and rebuilt but it was never inspected. The county require the wall to be inspected before I can close, so since this is my first deal I am looking for a local GC to give their insight and work with me on this.

Many thanks in advance!

Matt

Hi Peter, good question, I should of explained my strategy better. This is the first of a number of buy and hold rental property investments plans. Ultimate goal is to own enough for passive income to allow me to be FI within 5 years. Residential only I expect, plan is to have 3 units by the end of 2017, then enough by 2021 to be FI. I have a full time job currently but I want to move away from working full time by then.

Hi Florian N, my initial purchase price was $224k, current value is around $320k - $340k. Current remaining loan is $199k. 

Main residence is on an adjustable rate yes, but cannot increase more than 1% per year. 

A question to you BRRRR strategists?! Kind of... So I'm coming up against in my area a lot of "deals" that require a cash buyer. I am more than qualified for a conventional finance and am pre approved & qualified already for the necessary funds but that doesn't help when it's a cash seller. My criteria is a 2 unit MFR, $100k budget for buy and hold passive income in the Sarasota, Bradenton, Tampa area. I have already $25 in cash so enough for a 25% dpayment. I need a deal so it will need rehab, I'm estimating purchasing at $60k-$70k and the remainder to be rehab and closing costs. I currently have a primary residence I purchased in early 2012 that has around $100k equity built up. I have a 30 year mortgage with an exceptional rate of 2.75% interest but only until August 2017 when it will be increasing with market rates at a max of 1% per year. I'd considered refinancing (but not for equity release) last year anyway since I knew my rate would be increasing but never got around to it, that was also way before I'd discovered the concept of financial independence and RE investing. So with all this in mind, should, or could I... refi my primary residence mortgage and use this equity as cash towards a rental investment Multifamily?? The pros of this I see are: - I'd keep just one mortgage as oppose to two if I found a deal with conventional financing. - I'd benefit from primary residence financing, such as reduced interest rates. - I can use a large portion of the rental income to pay down my residency mortgage. - I'd have no mortgage on my first RE investment! Cons I see are: - I've been paying down this mortgage for the last 4 years and with the amortization if I refi I'm back to getting hit with a high percentage of interest in early payments again. - The costs of an appraisal and lender fees. - A general feeling of taking on more debt and feeling uncomfortable with meddling with my primary residences finances. Would love to hear your thoughts?! Thanks in advance, MD

Originally posted by @Danielle Fattizzi:

@Matthew Dunn Welcome to the club! Sounds like you're well on your way to taking the plunge into REI. Stay engaged!

 Thanks for the encouragement, working full time so I'm trying to juggle this, but I am determined to get that first property by the end of Q1 2017!