All Forum Posts by: PJ Muilenburg

Can I deduct a cleaning fee from security deposit if I do the work myself, as the landlord? I can't find any information online regarding that specific issue.

It's true that contractors won't, and shouldn't, accept credit cards or their costs and thus ours would go up. However, you could elect in some situations to pay for the material yourself, which is a significant cost. I put 12k on my Citi double cash card on my last rehab; now that's just $240 in rewards but that's better than nothing. I also do much of the work myself so that may not work for most.

I'm not sure at all on the plumbing issue. 

Wholesalers sometimes have a 'buyers list' so when they get a house they email out to their buyers and hope they get one or several offers. I've found it to be much less competitive from a buyers standpoint. So they can be somewhat difficult to find. Start with your local homevestors. These are the guys who have the 'we buy ugly houses' advertisements. websearch for them. You can also websearch for 'buy my house' or something like that and you'll find plenty of wholesalers. They also sell on Craigslist and such. 

In regard to your financing structure, there are so many options I'm not sure what you mean exactly. I did do a 15% down payment on my first home but did 'creative financing' on my last deal and the one I'm working now. I use what Brandon Turner calls the 'BRRR method'. I find a distressed home, fix it up, rent it, then refinance and get all or most of my downpayment back. Brandon's book (linked below) goes into this and many other strategies and really helped me figure out the best option for me.

Good luck though! 

The Book on Investing In Real Estate with No (and Low) Money Down: Real Life Strategies for Investing in Real Estate Using Other People's Money https://www.amazon.com/dp/0990711714/ref=cm_sw_r_c...

Stay with it Brad. Sounds just like my first deal. I looked for 8 months, made a couple offers and had a few accepted offers fell through. Almost quit completely. I eventually got one. My second deal fell into my lap and I'm working on another now that was much easier to find. I've worked the MLS, mostly foreclosures that aren't in terrible shape, but I'd recommend also looking for some wholesalers to buy from. I got one that way and it's great. Also I'd keep looking through the holidays and winter. There may be fewer listings but much less buyers during that season and I think a bit easier to snag a good deal.

I am a new investor just finalizing my second property that I thought went really well. I wanted to post a success story to encourage any other new investors. Starting out it can feel like the strategies the 'big time' investors use are unreachable and I felt that on my first deal. My first deal cost me $23,000 and I thought, 'how am I going to come up with that kind of cash over and over again'. Thanks to biggerpockets and a local mentor...

I bought a duplex in my town from a wholesaler, cost $82,500, and replaced the roof and did some other repairs myself. I used the BRRR method that Brandon Turner talks about, which is essentially he same method a mentor talked me through before that. I used a local bank with portfolio financing. The appraisal came back at 100k post repair, which I was a bit disappointed in. I asked the bank to use an income approach for the appraisal and after some work from my banker they went for it. It then appraised for 111k! After the refinance I was just over $5,000 out of pocket; plus got a line of credit for 6k since there was some room left in the LTV. All said and done I spend much less acquiring this property and actually cashflowed the whole time since I bought it with tenants in it.

I really hope this energizes a new investor in whatever their current goal is. My first a second properties are nearly identical in home value and rent but was able to get the second for much less with a few simple strategies. 

I only have a few units and offer direct deposit at my bank or online auto draft. The bank deposit has worked well for me, but of course do have a separate account just for accepting the rent payments and transfer the money out ASAP. I also have NO overdraft coverage so if a tenant were to try and use the account info online to buy something it would deny payment. My banks also have an after hours deposit box so there's no excuse that 'the bank closed already'. 

Thanks for all the suggestions folks. The properties are too close to put a fence or trees in between; although that would be great otherwise. Also, there really aren't a lot of investment properties in the area that I know of. 

So, I have the city fixing the street light and replacing the parking lot light; I never realized  both were out. I think lighting up the place will help. I did call the landlord and he blew it off mostly but said he'd keep an eye out. I also plan on talking with the police once the lights are fixed just so they're aware, although I don't think they'll proactively investigate. So I told my tenant to text me if anything is going on and I'll get the police involved (he won'ton his own). If these don't clear things up I'll install a camera on my side of the property. 

I  bought a duplex last year in a lower income neighborhood. Good tenants but one told me he's planning on leaving due to the small apartment (12 unit) getting bad next door. My duplex shares a driveway with the apartment so they're pretty close. The neighbors' friends are sleeping in their cars in the parking lot, people are coming and going during the night, noisy during the night, using the water hoses to bathe. He also suspects drugs are being used but hasn't seen it directly, only heard them talk of it. He won't call the police himself because he's afraid they'll mention his name.

How would you recommend me handle this? I do have the landlords contact info and I know he has 80+ properties. I do plan on contact him to see if he will resolve but he's blown me off before about something. What's the best way to get police involved?

Thanks Robert for that link. I agree with you in that landlords should be exploding over this. I didn't realize this until I was almost done with taxes and it nearly doubled my federal refund. This new regulation is a big win, for smaller landlords like myself at least.