All Forum Posts by: Max James

Hi!  Curious, when did people start moving to a good tool to help manage their properties other than Excel?  4 units?  10 units? 20 units? 100?  Is it worth moving to sooner rather than later to get the process down? Which software do you suggest?  

Thanks @Jeremy Baker! I completely agree with targeting that area due to the fact you're so close to Breck/Vail/Keystone/etc. 

And that's sad to hear on the #'s not making sense.  Sounds like you'd almost have to use the place as your primary residence for a good portion of the non-ski season and then rent it out during the season.  That could be ONE option I guess for the #'s to make more sense.  

Hi! First off, please forgive me for my level of tax ignorance. My friend asked me this question who is looking to get into REI and I honestly could not answer it. That's what BP is for :-).

If I am grossing $2,000 in rental income on a property and netting $500/month, what taxes am I paying?  I know this is probably basic tax knowledge, but still trying to learn more.

Thanks!

Who has experience on vacation rentals out in Colorado?  I'm a huge snowboarder and make an annual trip out west with my family and friends.  I'm sure I would make more of them if I had my very own vacation rental out there near a ski resort.  

What are the top 5 locations/ski resorts in Colorado for vacation rentals?  Looking for a location to start doing more investigating.

Thanks!

Just had the seller fix all of the plumbing leaks in my 4 family I'm closing on in a few days.  My question is, should I do anything before the closing now that they've fixed the plumbing leaks other than look at the receipt for the fix and trust it was done right?  

Should I hire a plumber myself and get him out there to inspect?  Should I just do a final walk through on the morning of closing and run all the water myself?

What have you done in this situation?

Hi Chris, I have a duplex in Oakley and would have liked to pick up another 2-4 fam in Oakley/Hyde Park, but I found the market is pretty tough to make the numbers make sense. I'm taking my next investment to Pleasant Ridge with a 4-family. There seems to be some momentum moving to some Pleasant Ridge areas. A few of my friends/coworkers, in their late 20's, have bought SF homes there.  

What does everyone think?  Where will the next Oakley/Hyde Park be?  East side of Norwood?  Pleasant Ridge?  

Thanks Michell!  I agree with your logic, I like it.  Also agree with abiding to the local laws, I need to check on those.  

I'm leaning towards bringing all rents to $500/month on Nov 1, 2015 (so a $25 increase for two and $50 increase for one).  I do not want to raise it a full $100 due to the time of the year.  It's going to be harder to turn an apartment during the holidays.

I want to bring rents to $650 eventually (once I get all the upgrades done I want in every unit to make them very nice) which will put me very close to the 2% rule in a nice area.  My goal is to lock in a 12 month lease around the end of May/start of June at $600-$650/month. The numbers still work with rents at $500/month from Nov 2015 - May 2016.

Hi!

I am closing on a 4 family I will be going owner occupied on in 1 month. I just received the leases from the seller and the three tenants I'll be inheriting are on a month-to-month lease which is dated back to as early as 2004. Based on everything I've gathered so far, I know the tenants have been late on rent payments more than once over the life of their tenancy. The house is located in an area where young professionals live and is on a nice safe street.

I am trying to develop my strategy before I become the owner.Here are my ideas, let me know what you think!

Inherit potentially bad tenants and...

Idea #1:

-Give them a written notice rents will be rising $25/month in 30 days (for 2 of the tenants) and $50/month (for one of the tenants since this will bring all 3 to the same price) on the day I take over ownership.

-In the written notice for the 30 day increase in rent, also let them know rents will be increasing by $10/month over the next 5 months. Basically, that's another $50/month increase in rent, totaling $100/month increase in rent after 6 months from the rental price when I bought the place.This will bring the rents up to market value.

-Discuss with all tenants if they plan to stay with the new rent and what their plan is for the next coming months when taking over the property.

Idea #2:

-Give them a written notice that rents will raise $100/month in 60 days.

-Discuss with all tenants if they plan to stay with the new rent and what their plan is for the next coming months.

-If tenant does not want to stay, market for new tenants and turn the apartment in one week with it being vacant.

Idea #3:

-Do nothing. Keep rents where they are and enforce late payment fees strictly. If they continue to miss rental payments, break their leases and ask them to leave.

-If they are paying the below market rents on time, keep tenants through the winter and give them a written notice that rents will be increasing by $175/month on 5/1/2016. This will give them plenty of time.

What would you do?Is there something you would do entirely different?

I know there are some other factors to consider, but curious as to what people think.

Thanks!