All Forum Posts by: Michael King

For me it's quality of schools, access to employment or highways to nearby cities, and proximity of amenities like shopping, hardware stores etc. Probably pretty basic formula, but it has worked for me. Doesn't mean I always get a good tenant, but the rents are good and turnover usually low. 

Quote from @Albert Hasson:

Taxes may not be a big issue in Florida but the ability to obtain AND afford homeowners insurance going forward will be interesting and challenging for many.  I’m hearing perhaps up to $10,000/yr will be possible.  Many insurance companies have left Florida and the state sponsored policy has such serious coverage gaps that many may not be able to afford to rebuild.  Would love to hear from someone in the insurance business in Florida.

 I've been wondering this too. I wonder also, if it's worthwhile having the bank that holds the loan find me my next insurance...thinking out loud, really.

I live in Navarre; have been keeping an eye on the market. What are you looking for?

@Bill B. I had Renters Warehouse for 5 properties. For me, they were one month for a 12 month lease, 2 months for 24 month lease and 3 months for 36 month lease. Plus the $89, plus account setup fees for LL and tenant, plus $7 a month (tenant paid) fee for the privilege of paying rent online. On a $3000 rental, not a terrible deal, but on my $1500 rentals, not a strong deal. For the fees and a myriad of bad customer service issues, I dumped those clowns and have not looked back. 

Not trying to hijack the thread, 10% seems normal and you should shop around. Be wary of all kinds of BS fees. Remember that a PM company exists to make itself money, not you.

@Paul Dario Jr yes the variable interest rate is a disadvantage for sure, but if you can swallow a 5.5% interest, or wherever it lands, you can have convenience of availability if not already maxxed out. 

As far as hindering my future investments, no it doesn't - in my case. It is a loan on a paid for property, so it seems to be treated as a mortgage on it when taking into consideration assets and liabilities for subsequent investments. 

For me, it was always about having access to a big chunk of change available. I just used it to partially pay for solar panels at my home....and it is treated as a mortgage at my rental property. I could have paid cash, but want the cash ready to go, and I'm okay with a tax incentive on the HELOC.

I hope this helps you.

I think a HELOC is cheap money. I have a commercial HELOC against one of my rentals to the tune of $100K. Yes the interest is variable, and yes it just went up to 5.5%...but that interest is treated as mortgage interest against that property, so a tax advantage for me, even though you I use the HELOC to pay for anything. I would not mess with your home mortgage if you are happy with the rate.

I was the seller in a similar situation. I was tired of the buyer's "fix this, fix that." I decided if I was going to fix everything the buyer wanted, I would keep the property for myself. When the last counter came in, I didn't respond and let it expire. The buyer may have been mad, but the law allowed me to do it. This was in Missouri. 

In Missouri from memory, the SDs need to be in a separate account. But you can place it in an interest bearing account and the LL gets to pocket the interest. If you feel nice, you can split the whole 90 cents earned with them. It's a good question given that high amounts of SDs could be earning interest. 

Quote from @Mark S.:

I buy in cash so I'm taking things step by step and looking for the best deals. I bought one last October for 50K more than I did for another unit in that community with the same floor plan 15 months earlier. However, I recently went to go buy another one in that community with the same floor plan - and this time around it was 68K more than what I paid even last October. I decided to pass and I'm looking at other areas, talking to other investors to buy "as-is" properties in the right areas.

Mark, I'm in a similar position and wonder what percentage your situation was? For my situation, I bought a brand new SFH in 2019 in this great neighborhood for $210K and another brand new build, same everything, is now $273K, so $63K over. I have 3 in that neighborhood and my dollar cost average is presently $195K...if I DCA this 4th property, I'm at $220K each. Makes it sound a little less bitter to swallow that pill, right.

Interested in comments on this situation. Cashflow would not be a huge amount, but it is still positive. 

Why don't you use Zelle? Most banks have it, it's instantaneous and free, with a text alert on deposits. Also Venmo, but takes 3 biz days I believe. Free unless you want the $$ faster. There are other apps too - cash app, paypal, who knows what else. I had one tenant who didn't use the internet, so I had her pay cash at my bank into my account. Personally I wouldn't use Zillow, I can only imagine they want to introduce a future fee for the service.