All Forum Posts by: Peter Mckernan

Landlording on autopilot is a solid book! I would get your state land lording laws book, rental property management made easy as well is good. 

Typically this is something on the landlord unless there is something in the lease that states putting anything other than toilet paper down the toilet that causes an issue will be on the tenant. The baby wipes are hard on the plumbing and that ends up causing a lot of clogs, so I would talk with the tenant this time on you paying for it, but going forward I would tell them it will be on them and change it with an addendum. 

I would connect with local agents, flippers and people at investment meetups locally. I would stay away from wholesalers on numbers unless they have access to the MLS and are working more of a traditional role as a realtor/agent as well. The reason I saw the last part is some states/areas do not require wholesalers to have their license as a wholesaler which reduces the professional standard needing to meet. Not a bad thing but some do not hold the line of a higher standard when sending good comps and numbers for ARV etc.

If you are going to be flexible and move it to the 15th which is an option I would think about being strict on that movement. So if anything is later than the 15th I would do an addendum for the agreement, and state in that addendum if the rent is 1 day late then there is a penalty for that happening. Be strict on that and keep the late fees starting 1 day after and make sure you are making her aware of needing to find another place if there is a trend of extending rent even more from the 15th.  

The new construction is nice with not as many maintenance requests and the fact that so many builders are giving great incentives for purchases that might make it even better on numbers. The existing homes will be cheaper than new builds, so you might be able to find a deal due to price compared to new builds to offset the new build cost/repairs.  

There are many... I would first say, look to run it as a business. Run it like any solid company you come into contact with and say, wow that was a great experience. That should be the mindset going into being a landlord. Go into running it as a business and know that you will have to set a standards that are high for not only your properties but screening tenants and working with vendors. 

If the numbers work, then I would ask the lender. Most deals that flip to rentals are typically held in cash to begin with, or they have such a solid amount of equity that they can refi and then rent it out. I would typically do a Full Doc loan right now due to the rates being so high, but if the deal is as good as rental numbers work out.. Might be a good option to DSCR it since it's less paperwork.

I agree with Joe, the deals that you could have had would have been 25%, 40%, 60% and more depending on how you look at it. Instead of looking at it all or nothing, look at it as a part of business to get bigger and grow with a partner. 

This is a great idea and I would really get with the realtor who helped you buy the property to pull comps to see who is selling properties like this in the area for on a sales price with the ADU attached and detached. There is a lot of data out there that you can get, the best is from the MLS and your real estate professional that can tell you how much your house will be worth after it is done.

My suggestions would be doing a fully detached ADU on a side of the lot where the people staying in it can exit without disrupting the front house/main house. This will give you a better value when going to refinancing it when that time comes or selling it.

Other action items are getting quotes from architects, engineers, and GCs to see if you are able to financially do this type of build out.  

I would reach out to some local realtors and property managers along with GCs to see if they have someone they recommend. Or even local flippers in the area to see what you could uncover on this route of finding a PM.