All Forum Posts by: Matt Kelty

@Ricardo R. Wow. Thanks for all the thoughts.

Everyone, thank you. I know I already said it, but it’s great to hear this same issue creates a headache one way or another for us.

I really liked the idea of driving and checking the comps in the area. Likewise, suggestions on pets and adjustments to rates.

Again, thanks everyone for the help. Best of luck to you all and please let me know if there’s anything I can do to help you out.

Have a great weekend and feel free to continue the conversation.

Best Regards,

@Joaquin Camarasa thanks so much. It seams so simple but it’s a great point about asking neighbors. Like I said above, we make a deal when we purchase the home. But knowing all the numbers is critical in that process.

I’ll definitely check the Rentometer site. Thanks again and best of luck with your work!

@Lisa Maldonado thanks for your thoughts. It’s always comforting to know I’m not the only one questioning this. Everyone says you make the deal when you buy, but if you’re not sure where the rent falls, it makes it a lot harder to know if it’s a “deal” or not.

Much appreciated.

As a beginner, I’m looking at my first deal and not sure if it’s going to profit the way my wife and I are hoping. Our biggest question is how to set the monthly rent price?

The cost of purchase is around 120k and the realtor tells us the location will bring 1400-1600 a month. However, every example I can find is closer to 1100-1200. How do you tell the going rate?

Is there an app or website that you guys are using to help set rates?

Thanks so much for all of your advice. Hope to hear from you all.

Regards,

@Scott Dixon and @Patricia Steiner, with your college rentals do you ever include utilities? I'm currently looking into a student housing system with an engineering/tech school where terms are 3 months on (in school) and 3 months off (at work). you end up with an A/B term where a group of students live in the house for Spring/Fall and Winter/Summer. As a result no one tenant is in the house for 12 months straight and utilities fall on the land lord.

what are your thoughts on something like this? any creative solutions?

Thank you in advance.

@Jon Crosby thank you for the suggestion. we're still going back and forth on this property. they originally accepted a different offer but that fell through and now its back to us. My wife and I have some concerns with this property just because of the location and we're worried about possible issues with a well. we've been on a well for the past 12 years in our own personal residence and we know what can go wrong.

That being said, what is your take on HELOCs? we've still been active looking at other projects and thinking finance of some sort may be the better way to go. do you (or others) see leverage as a positive or negative when starting up? I think the internal struggle we're having now is by carrying a loan the cash flow is drastically reduced. maybe it's just an issue of expectations.

thanks again for all of your time.

@Edquan N. Dantzler

Thanks Edquan. I think the well inspection is a great suggestion. As for screening Tenants in the area, do you have any forms or tricks you have used in the past?

Thanks again.

@Andrej Petrovski

Thanks Andrej. This one is just west of Center, but only by a block. Neighborhood looks alright, considering there’s 5 inches of snow right now.

Thanks again.

@Carolina E.

Thanks Carolina. I appreciate the suggestion. The BRRRRR plan is definitely something I've been thinking about. Homes in the area are anywhere from 35-70k.

Great point on the well. My personal house is a well and I’m used to it. But the inspection is an excellent suggestion. Thank you!

Thanks again. Good luck to you as well.

my wife and I are trying to land our first deal on a purchase of a SFH. Right now we have a pending offer on a 1000 sqft home for 42,500 cash. Asking price was 45,900. Rent potential is 750-850. It was just renovated with new carpet and paint. Needs a few things but nothing significant. A few details are below. I'd love to hear your thoughts on yes/no good idea. Any suggestions are always appreciated.

Location is Burton, Michigan. This is just outside of Flint in Genesee County.

Asking price: $45,900

Original offer: $40,000 cash

Counter offer at $42,500 cash

3 bedroom, 1bath 1000 sqft ranch on crawl space with shed in the back yard. Fenced in yard. Aluminum siding. 

Home was previously rented at $750/month. Could get as high as 850 if appliances were included. Currently no appliances other than dishwasher.

City sewer. Water on a well (no fear of FLINT water, but not sure if that’s a positive to be on a well)

It runs on the BP buy and hold calculator as a 1.6% on the 2% rule. A little freaked out about paying all cash. In a perfect world I’d hope to get my investment back in 5.5-6 years maybe. Biggest fear could be, if we do all cash on house #1 how do I afford house #2?

Thank you so much for your thoughts. I appreciate your help and look forward to hearing your response. 

Regards,