All Forum Posts by: Mark W.

I've rented a truck from the Depot without having to purchase anything, but like you say each store can impose its own rules.  If that was the case, I would rent the truck and then buy a 2x4 to throw in it.

Figure out what's most important to you. Do you feel your quality of life will be same/better/worse if you picked up and moved into a multifamily?

I'd argue that a multifamily that makes the most sense for you now to live in may not be the most profitable when you leave and convert it to a true income property. There always seems to be multifamilies on the Rochester market that are priced for the owner-occupant, i.e. someone that just wants to reduce their monthly nut and live on the premises for cheap. These are desirable, well-maintained properties in nice neighborhoods and attractive to owners and tenants alike. Problem is, given market rents, they may not do so well as a stand-alone income property.

Either way, find a property where the numbers work regardless.

Thanks @Bill Gulley for that thorough reply!

My intent is to start keeping my financials separate now that I have a 2nd rental property and am going to establish a proper business. That includes the use of a separate business checking account where all rent checks will be deposited and all rental-related expenses will be paid out of.

But you've made me realize that there is more to this than keeping things separate. I use Quicken already, I'll see if I can make that work or if it's better to start using Quickbooks.

That's the only way to get your feet wet, imo. Move in one side, rent out the other, and start running your business in a low-risk environment. It helps to be on site as you start learning about maintaining your home and your rental property.

A year or two of that and you will have a much clearer vision for the future.

At the moment I have separate savings accounts set up with a single bank. Some of the savings accounts are personal, while the others are what I would consider "business" savings accounts: property tax escrows for the rentals and security deposits. Separate, unique account numbers for all.

At some point in the not-so-distant future I am going to set up an LLC for the business, so I understand I will need separate accounts for the business. Does having the separate savings accounts as I mentioned above fit the bill? Or does it have to be at a separate bank with a separate login totally unrelated to my personal financial accounts?

I don't know for certain, but I am guessing appraisers don't cross-pollinate across zip codes. The subject properties are in one zip code and the comp you're using is in another. I looked at the appraisals I've had done recently (2 refinances, one purchase) and the comps for each are all in the same zip. So perhaps that is the policy they speak of.

Only thing I could think of is to try a local bank who might have their own appraiser on retainer? Not sure how that works exactly. I do know that for my recent purchase the lender (national) put the appraisal job up and it could get picked up by any number of independent contractors. Maybe a local bank would be more willing to work with you and their appraiser.

Hey Mark, glad to hear about all of your success and I'm glad I can contribute to that. I had been thinking for a year or two that I wanted to get back in the market and started to keep my eye open for potential realtors to work with. Trying to find an investor-focused realtor here in Rochester is kinda impossible because if you ask any realtor if they have experience with investor properties they will all say yes. But have they owned them? No. Do they all know what makes a good deal? Not likely.

It was last year sometime that I noticed you in a post somewhere, and I noticed you were a realtor here in Rochester. I could tell you knew what you were talking about, and it appeared you only focused on dealing with investors. You were the first and last realtor I called. It's been an absolute pleasure working with someone who has the same interest, fire, and passion. Your advice has always been spot on.

The best thing I did was get off my butt and take action. The next best was calling Mark.

Yes, that's part of the certification process -- the location is inspected.

Ralph, that is excellent information. I have already contacted the tenant and insisted on liability insurance with me added as a named insured. I *am* concerned about wear and tear and have considered amending their rental agreement and requiring additional money for their security deposit as well as raising rent. I'm not sure if I can do that or not, I am going to have to check the state laws.

Thanks for that link. Even though the family is month-to-month, I do have a written agreement in place. However, I did not add a clause restricting her from operating a business (hindsight is 20/20 now, eh)