All Forum Posts by: Michael Salamone

Hello,

I was wondering how much I can raise the rent in CT. Let’s say, hypothetically, I have a renter paying $1,000 a month for rent. However, I have seen similar rentals going for as much as $1,650 for rent. Now I’m not saying I want to jack the price up $650 for rent, but I also am not trying to give this place away when I know it can make more

On a side note, I want to make sure that this rent raise does not come off as retaliatory. Call it poor timing or whatnot, the tenant had a complaint (that they did not notify me on but that’s a separate story). Given I have evidence this is closed, how can I avoid being called out on retaliation in the form of a rent raise? Again, that is not the reason why I want to raise the rent, I am just trying to get closer to market prices (~$1,200 and $1,300)

Michael

@Lien Vuong

That makes sense… guess I’ll have to re-vocalize my communication expectations with them

My spidey senses tell me that they just wanted to sneak out of paying rent on time…

@Nathan G.

Correct, they made no effort to reach out to me that they did not believe the situation was rectified

Thank you for the article!

Hey all,

So recently I had a sewer line back up causing a mess in the tenants side. Long story short, they decided to withhold their rent until they felt this situation was remedied (long story short this issue has been cleaned and closed)

My question is, I didn’t know that tenants could withhold rent for certain issues. So, what are some other circumstances that would allow a tenant to withhold rent?

Best,

Michael

@Jayden Hamilton

Thank you for you’re service, that is awesome!

It sounds like you already have some experience investing w the duplex you have and aren’t exactly a newbie. It also sounds like you have a decent chunk of change saved up for a rainy day

Have you considered getting into the “awkward sized” multi families (ex 5-10 family apartment buildings)? The reason I call them awkward is because they are too large to be residential, and too small for the big companies to want to eat up. These are typically cheaper, but have tougher loan rules, so maybe take a look at those

On the other hand, have you looked into how many properties you could get loans for using the $100,000? In an extreme example $10,000 down for 10 properties?

On of my personal goals is to work to get my own “awkwardly sized” multi family. I like the idea of having one spot to work on, and not have to drive all over the place to work on my units.

Best,

Michael

Hello there,

My question is, how can I eliminate my PMI? I know the simple answer is throw in a bunch of equity.

However, let's say hypothetically (nudge nudge) I have a property I purchased at $250k with an FHA loan (3.5% down of course), and I believe through passive and forced appreciation, the property is now worth say $300k (nudge nudge). Basically, $50k in equity based on appreciation.

Now I have not had any appraisals nor spoken to any banks about this yet. But, is there any way I can eliminate you PMI to lower my monthly payments and increase my cash flow if I believe I now have the equity to satisfy the bank? Or did I just describe refinancing?

IF the answer is yes I need to refinance, what are some experiences/things I should do or expect? I have never refinanced before and it seems like a large hurdle

Best,

Michael

I just purchased my first investment property. It is a duplex with a tenant already living in one side. I set up a separate bank account to have the tenant deposit the rent into. I also had an agent give me the tip that I also “pay myself rent” each month to start saving money. Therefore, if rent is $1,000, then I will also “pay” $1,000 to this account. My question is: is this wise with respect to reporting for taxes given I am a sole proprietor? Or am I making it appear like I am making more on the side that I really am?

My other question is what can I expect for tax benefits at the end of the tax year? I’ve been pouring money into this property for updates, and saving all of my receipts so far, but what will my first year look like?

I am about to close on my first property this month, a duplex with one side already rented. I decided that I will allow the tenant to stay since they appear to be current on rent and their side is immaculate (I will probably start with month to month or 6 month lease terms to make sure they will still be current with me) 

My question is: Should I collect rent for the month I purchase the property? The closing is on the 9th, and I feel strange collecting rent mid month like that. But, I also feel like I shouldn't be like "yeah don't worry about it" and need to start firm and set the tone. Thoughts?