All Forum Posts by: Michael King

$4800 a year after taxes, note, etc are paid off? That's good numbers on a $168K property. I would be stoked if I could get that out of any of my $180 - $200K properties. Would you really receive a big enough offer to wipe your hands of it?

If you have trust issues with the realtor then is that not a big enough red flag for you? 

If it looks to good to be true...it's probably too good to be true.

To a renter, probably minimal concern. To your wife....now that might be an entirely different matter if she was the one living with it.

I just bought 2 brand new places with single vanities in the master baths. Oh well. A tenant will live there because of the location being near to where they want to be, maybe the schools are where they want their kids? 

I would say vanities would be right down low on the list for a tenant. But for my wife, it could be a deal breaker. Don't get hung up on small details, unless there are lots and lots of small details. 

I've seen all kinds of laminate flooring installs - cheap to high end, crap installs and pro installs. I've not seen any of them show signs of 'wear' in a residential property. I wouldn't expect to see any signs of wear in 4 years, neither. Even on the cheap $0.99 a foot stuff from Home Depot. What do you mean by wear? Photos? 

I'd go it alone. I partnered with my brother twice in my life, to buy real estate. The first time I was 18 and it turned sour. After several years I wanted to sell out to him so I could buy a residence. He paid me back every penny I contributed, and not a penny more, despite the value climbing tremendously in a boom. Should have learned that time. 

The next time I gave him a good amount of cash as a silent partner in 6 properties. We had a verbal agreement that 1 of those properties would become mine eventually. When that day came, he turned on his word and refused to follow through. After many months of back and forth, arguing, he sent me my money back. Again, every penny. But he screwed me out of $100,000 at the same time. The last words he said to me were, "I blame you for that mess." Strange use of the word blame I think. 

Don't do business with friends or family, they say. If I never have to speak another word to that lying, cheating SOB, it's a win in my mind. 

So. What if your partner wants out and you're not ready to buy him or her or them out? Will you be ready to sell? What if you disagree about the materials used in any repairs or refurbs? 

If you can go it alone and you are successful, you can be proud of your achievements. If you are not successful, you can blame yourself. For me, unless it was someone I really, really (no, really) trusted, then I go it alone. 

I better throw out an apology to the good realtors out there. I know the good ones do exist; I found one in Texas. But I've been through at least 10 in 10 years. I would say that any realtor responding on this website is more than likely a good one, considering they seem to be taking their time to respond to people outside their areas, with no financial gain likely. 

So naughty me for being a negative sod on realtors (heck I was even one myself for a brief time 22 years ago in Australia, but got fired when I broke my leg on a 'vigorous' house inspection!). 

Maybe go to a local broker and sit down with him/her, if you are looking for a bunch of properties I'm sure he or she will gladly help, or give you someone who may be hungry, that will spend the extra time to help. 

This is all about everyone's value for time spent these days. 

Don't rush in to spend that money.

Talk to several rental management companies to find out good areas for rentals, then use your money to buy one. As long as it's in a good school district and close to amenities, you're off to a good start. You'll need 20% to avoid PMI, but it may be worth paying lower downpayment and taking the PMI hit, if it allows you to buy 2 rentals. I did that a couple of years ago and with the extra leverage bought the next place. Hated the PMI though and scrambled to pay down to 22% equity to lift that PMI.

Don't rush. I think I said that before. Research your areas. As long as you have school district, amenities and nearby employment opportunities, and you can afford it, you have the game sewn up. At least, that's some good basics.

Depends on the condition. How much would it have cost to rehab it?

Finding a good agent is like winning the lottery. It may happen once in your lifetime, but don't bet on it. 

I found one in Texas earlier this year when I sold my home. She was awesome and cared for my needs. She also tried to find me investment properties in Texas before we moved to St. Louis. 

Here's how I have been doing it in St. Louis: I have bought 5 brand new houses direct from the builder. No agent involved, and prepared to negotiate as such. Sure it will cost more initially, but the warranty and 'everything is brand new' makes it worth it to me. And I get good rents because they're new. 

Right now I'm procrastinating on getting my realtor's license, so I can cut the dummies entirely from my life. Maybe this is something for you too?

Thank you Frank and Max! Even though I will have 6 SFRs by Friday, I'm still relatively new at this. I'm also a foreigner, since I moved to the US 13 years ago from Australia where it is all a bit different - and what I thought would work the same way, particularly with taxes, does not. The one thing rings true though, I am just as confused here in this country as I was in Australia! But luckily I've had what I believe to be a great accountant for the last 8 years. 

I just started keeping a diary for trips to the rentals, and it adds up! So far, 6000 miles driven for the rentals.

This is a great forum, and active too!