All Forum Posts by: Naftali Tolibas

Thanks for the post! I am near closing on a duplex and this was one of my questions. I think I'll go tile in the bathroom and laminate in the living room and kitchen, and possibly leave the carpet in the bedrooms. 

Ryan,

Thanks for pointing me towards this. In my estimates, I assumed that the property tax would be a little higher than the previous year (2017), and the owner was not occupying the unit. I didn't know that the taxes get reduced if you are an owner occupant. I honestly haven't looked much into property taxes, so I wouldn't know how it's going to go.  I'll definitely look into this and try to grasp how everything is calculated so I can be confident in my estimates.

Thanks guys for the input. I'm not sure if I'm under a rock, but I think its weird that this is the first time I'm hearing about this. I'll definitely be implementing this when I turnover the inherited tenants.

Moncy,

I'm in the same boat in trying to turn over water costs to the tenant. I recently listened to podcast #60 w/ Serge who turned a 32 unit I believe and sub-metered everything. His method required zero money for installation, and the fees from the company were charged to the tenant so it was pretty much a no brainer. The company basically setup the meters, and acted as the water company. Owner was still on the hook for the water with the city, but reimbursed through the company. Upon moving in, the tenant had to call in to 'turn the water on', and if the tenant didn't pay, the water was shut off. 

I'd suggest having a plumber look at it, and figure out ways to attach a sub-meter with a lock box type of installation. Sometimes it's just a plug and play, or it may have to be a big plumbing job. Just depends on the configuration of the plumbing and how it's set up. 

So I am currently working to close on my first Duplex and called for property insurance. The insurance company recommended that the renters get renters insurance, and that it should be on the lease. I'm not sure if that's just an up-sell, but being a renter myself, I've never heard of it being a requirement, and listening to majority of the podcast, I haven't heard it mentioned it. 

What are your thoughts? Do any of you guys require renters insurance? 

I agree, they are cheaper, but it may be a bit more difficult with the tenant base. I’m not native to Tucson, so I’m not sure what areas under 22nd would have a great tenant base. However, the crime rates are definitely higher and in a buy and hold strategy it may be more difficult to find quality tenants. 

To me, it’s a safer start to go up north, location vs cash flow is a tough battle but I think In the long term, location causes less headaches and more security. 

Hey @William Horsey

I'm currently looking in the Tucson area too. Like what Wes has said, its a very hot market. It's amazing because I am seeing prices rise right before my eyes. There are deals, but as you know, most are off-market.

Be careful and really take the time to pick out a 'good' location. There are a houses under 100k, but they are in the more sketchy parts of Tucson. Anything below 22nd street is a hard sell and should be avoided IMO. Central near the U of A and below Grant Rd are ok, depending on the area.

Are you planning on house hacking? 

Welcome Austin! I'm also in the Tucson area, let me know if you'd like to meet before heading off!

Great Job! Love seeing the before and afters. 

How were you able to refinance so quickly? Or did you have a seasoning period? 

@Job Hempy @Thomas S. @Colby Fuller

Thanks for your input, it really helped with my decision making. I've decided to start off investing in the B areas, and trying to find some good tenants first. Then as I expand and grow my portfolio, start taking greater risks and investing in C areas.

@Job Hempy I really like your advice, and I'll keep that in mind when I do decide to invest in the C areas.