All Forum Posts by: Michael Rossi

The banks haven't been forcing the issue with the DOSC because interest rates are very low. However, if hyperinflation picks up and 30 year mortgages become 18%, you can bet that banks might just be interested in getting rid of their 6% loans and replacing them with 18% loans.

I suggest reading a BUNCH of the posts in the rental forum. You'll get a good idea of the nightmares you could be in for. If you do everything right, you can generate an income of $100 per unit per month. Having a paid property manager makes that MUCH more difficult.

Good Luck,

Mike

...not to mention that obtaining an owner-occupied loan under false pretenses is MORTGAGE FRAUD!

Those that can: DO.
Those that can't: GURU. - Jeff from BiggerPockets

p.s. You can buy it dirt cheap in Late April or May. Once the stores realize that they won't be selling any more salt for the year, they'll sell it dirt cheap. I always stock up at the end of one winter for next winter.

Yes, you certainly should! If you don't, then you won't have the money to pay for major things when they do come up (and they will).

In my city in Ohio, there is an ordinance that requires snow and ice removal. Failure to do so can result in a misdemeanor charge. It's my understanding that case law in Ohio requires the tenant of SFH's remove snow and ice. Landlords of multi-family rentals are generally expected to do the snow and ice removal from sidewalks and common areas. Tenants are expected to remove snow and ice from their individual areas, like porches. I have all this in my lease.

The same answer applies to weeds, grass, etc.

Justin,

Unfortunately, when Taz left it looks like he took his link down. You can still view the data, buy you will have to subscribe to his website.

The bottom line was that he collected data from over 30,000 units spread across the country, both SFHs and apartments, and divided the data by rent range (he lists the ranges in one of the posts). The result was that in every rent range category, the operating expenses (as defined by the 50% Rule) were 45% to 50% of the gross rents.

You're quite right and I agree that he isn't going to get a commercial loan if he doesn't have something to put down or at least some other serious equity somewhere, The days of 100% loans are largely over unless you have a bunch of cash or equity somewhere and a long history of success/long track record with the bank.

Bill,

I didn't know that you were offering real estate coaching. If that is true, you really should be careful with the advice you're offering. Suggesting that someone break a door down is VERY POOR ADVICE and is blatantly illegal for the landlord that does it. If there is a water leak, the landlord could shut the water off at the street or call the water company and have them shut it off. Advice such as breaking down their door could get your student arrested or even killed, and you would be liable for giving that advice.

Please be careful with your posts.

Mike