All Forum Posts by: Patrick Young

I feel like I am on the right path then. I will have to feel out how to handle showings. There is usually someone there during the days and nights. I just need to try to weed people out ahead of time and only show to better prospects.

I had been given about 6 months notice my 4 year tenant is moving. They leave July 21. I started advertising June 1 for August 1 move in. Is this too early? What is the etiquette to my current tenant for showings? I don't want to hassle them for 6 weeks. I am already getting requests to view the house. If I do get a new renter soon do I collect any non refundable money now to protect me if they decide to not move in at the last minute? Last time I rented the house was vacant.

I had a bunch of small notes where interest was not huge. I was factoring in all possible interest in my calculation. I then got a much bigger loan with a lot of interest where buyer said they would pay off very fast. At that point I had to give pause as it didn't look like I would ever collect all that interest.

I have a good feeling of the answer here just curious what people do when calculating net worth when you have a bunch of notes. Quite simply, is your net worth calculated by looking at the notes principle balance or the principle and full interest if the loan is taken full term? I am thinking principle only is the more conservative and accurate approach. Is there a case where you factor in the interest ?

If you don't mind me asking it sounds like you need a huge pool of cash to buy this many properties so quick. Are you buying with your own cash or using private money and then refinancing?

So Jay Hinrichs you think I should eliminate school ranking metric in places like KC, Indy? Replace with high owner occupied neighborhoods? Whatever drives long term tenants who are respectful is what I want. Thanks

I have been looking into turnkeys for some time now and have gotten discouraged. The great cash flowing Midwest seems like smoke and mirrors to me. I am looking for properties 100k and up in somewhat better school areas. When interviewing turnkeys all seems good but as I verify properties and areas I become discouraged either by very high list price, overstated rents, poor schools. When I really dig in I am coming up with COC returns 6-8% and this is with modest maintenance reserves. Pro formas never account for lease up fees as well. I guess this is true of any PM property so nothing to do with TK but unless your tenant stays about 3 years you are getting killed in vacancy and lease up fees. Just adding to frustration. If I could find a true A property in pretty good schools at 1% rent to value rehabbed I would buy a lot of them. Is that out there?

Dave Felts The way you are describing your potential purchase probably not much ROI. Not a scam but you should buy it to use, camp, RV, cabin etc; Or be absolutely sure it is wholesale price. You have to buy low to make any money if that is your goal. Mark has an education program that is legit but he also is still very active in buying and selling and offering affordable prices to people who want to have a piece of land for whatever reason. I have sold land myself and almost everyone had a use in mind and was more concerned about affordability than getting rich.

@Chris Richey I am pretty much in agreement to wait a year or two. Only carrot is the old line

"rates are going up soon" . Which could very well happen. 

The refi numbers are appealing because it is $567 extra in my pocket, tax free. I get to take advantage of the 20% equity built from principal and appreciation for last 6 years. Now, I believe the cash I put in (about 25k) is only returning me about $113 month. So, looking at like that not so good but it allows me to take advantage of equity. 25k into a Cash flowing rental would certainly return more than $113 month.  

Waiting a few years and having a loan rate that is still decent is ideal and probably the way I go. The appraisal we need as well is also possibly a stretch so this is no slam dunk. 

lender is paying the fees. I had pretty much told my lender maybe next year. But the hard sell keeps coming. I've worked with him before and not gotten the hard sell. 

In a year I would have $6500 in principle pay down so that's about 25% there. If the market gets hot it could work. If not then I'm not too worried. 

Thanks for all the input. 

@Chris Mason you are right on the wasted appraisal. Decent chance my appraisal is off and this is not even close. I've done that before on a refi.