All Forum Posts by: Megan Phillips

Sometimes the best way is to lead by example - it's hard for someone to get onboard with saving for investment properties if you've only got $700 in a savings account, and you're trying to sell the "no down payment!" method - you know what I mean? 
Also - consider the idea that they have NO IDEA what you're talking about when it comes to rentals and the potential of them, I knew nothing about RE a year ago. I got more into it because of my own interest, but as you know, some people just aren't interested in it, period - that's okay, but it shouldn't allow them to be able to affect your future.
It took several months, I didn't really notice how long, until it began sinking in to my gf that the whole "you only live once" and "you have to enjoy today" was complete bullsh*t and that you need to plan for your future or you won't have one. Eventually, after being subjected to months of me talking about real estate/money (I had no property yet), listening to the podcasts in the car, looking for properties, eventually buying one, etc - she doesn't mind the idea and has actually saved 20k in the last 1.5yrs or so (not necessarily for a RE purchase, but just because I talk about money ALL OF THE TIME, I think she finally realized that her bills are X and her income is Y... so she should be able to save Z per month - she just wasn't focused on that before - and as you know, you're money disappears unless you tell it what to do).

People who have zero financial literacy (which was me until very recently) have a hard time grasping frugality and let alone real estate investing - so, like I said, one way to get them on board is sheerly to walk the walk and show her how it works, save the money, listen to the podcasts, gain the knowledge, eventually buy the rental, etc etc.

I don't know the whole situation of your entire financial picture, but it seems like there needs to be a serious talk about your future financial goals - what are the goals for retirement? Are you saving enough for that? What's your monthly budget look like? Her lack of interest in future financial goals cannot go ignored, but maybe it's as easy as her gaining more knowledge of money, RE, and finances and the "FIRE" community before it clicks. 

Edit: ALSO - totally agree with the 3rd party thing! Go to an RE meet up, so they can see that OTHER PEOPLE DO THIS, IT WORKS! They live in your town, they like to talk about what they do. I think it makes you feel less scared when you realize other people already do it, and you can too.

I would make the current owner deal with delinquent tenant. Also, make sure that prior to closing (if you extend) you do another walk through it case the tenant trashes the place and there's damage that you'll have to deal with. Potential bargaining chip down the road.

What's the demand for rentals in the area? I'm concerned less with current negative cashflow based on below market rents, and more with the idea that you seem afraid to instantly raise rents to market rent/turn over tenants.

If there is a strong rental market, buy the property, raise rents to market value immediately (or after the current leases expire), if tenants stay, great. If they leave, you can get new tenants which would already be used to paying fair market rent - either way, you're getting fair market rent. There shouldn't be apprehension to do that just because the tenants are "used to it."

https://www.biggerpockets.com/forums/52/topics/561...

This post has a bunch of good stuff!

@Colleen Murphy Maybe leave the current system for the downstairs unit. If gas is available, I would install a Rinnai unit or two for the upstairs unit (the residual heat from downstairs might mean you only need one). I would not recommend electric baseboard heat, that sh*t is stupid expensive to use.  It was in my duplex when I bought it, first electric bill was over $200 and it was in April, can't imagine what it was in Jan/Feb! Removed them and installed gas heating units, electric dropped to 50-60 a month!

1- Get a credit card from your bank if they offer one, if they don't, go to a local credit union.

2- Get a card with no annual fee and an intro 0% APR (all types of vendors have one - AMEX, Chase, Discover, etc)

Airline and Hotel CCs are only worth it if you actually travel regularly... like, monthly - and usually have annual fees, some can be HIGH (~$500). If not travelling that much, get a card that offers "points" or cash back that you can redeem for flights/travel if needed.

It's generally not recommended to get any "store" cards - they are junk. 

You should be able to apply for and get a couple right off (they will show instant approval online) - if you get denied for one, it may be beacuse too many credit pulls, so just wait 30 days or so and try again.

I can provide you with a referral links for some cards if you want them (gets us both "points") - or just google "credit card comparator" or something and you will find 1000 sites that compare cards. Just be simple - no annual fee, intro 0% apr, no store cards. Pay off monthly.

It was last week... strange. That's what they told me anyway!

@Josh Bondesen was financing through NSB for a primary residence or investment purchase? When I spoke to NSB previously, they were very friendly but made it clear that it's against policy (they will not lend) when the money is going towards a "flip" type of property, and didn't seem to love the idea of foreclosures. They said they won't even lend to an independent buyer if the house has been recently purchased (I don't know what time frame) and is being re-sold at a noticably higher price, even if the buyer had nothing to do with the actual rehab/original purchase. It seemed a bit stringent to me, but banks want their interest money.

@Tom S. any recommendations for VT banks that you've had a good relationship with doing rehab/forelcosure but going to hold into for long term rental?

@Martha Nowlan  are these presentations open for people outside of KW? That would be a great meet up, actually! Maybe we could plan to have them give a group of us a presentation?