All Forum Posts by: William Powell

I think you can do better

#1 My strategy has always been cash only but recently thx to BP I've decided to leverage. Was doing one property to get my feet wet. I'll admit I have cashflow but my liquidity was low and needed to do something to get back rolling. I knew sitting on plenty of equity wasn't good.  

#2 Thanks I will investigate a rehab loan there or the Helo you talked about in #4

#3 Yes. All my properties were free and clear cash purchases including the MTR. If I understand you cash-out may be the best option. 

#4 Yes it all makes sense. You are saying a Heloc on all the properties and as I make moves refi out of the Heloc. Thank you for your feedback. I'm new to the leverage game and I'm not afraid to ask for feedback.  I'm with you my friend, I don't like selling. Thank you!

Since you contacted the insurance company/adjuster even though a claim hasn't been paid or denied, there is a very good chance this will be seen as a claim on your insurance record so you may as well go forward with it guns blazing. 

If the floors haven't calmed down by now they are warped and will need replacing. You should be able to replace 500 sqft for much less than the $7 you received and it could be replaced while tenants are living there because that's a one-day job. 

Most major repairs I handle. I consider insurance as equity protection. In the case where the house has catastrophic damages such as fire, tornado, and other acts of God I will receive compensation to rebuild the house if I choose.

You opened Pandora's box and now you are trying to close it. It's in my lease, that they aren't to make repairs, but to notify me and I'll make them. At this point when it's time to renew the lease I would put this verbiage in the lease and have a sit down and tell them from this moment forward I'll make all repairs and they will not be compensated for repairs they make. I'm concerned with a tenant making a small income off me using repair receipts. 

Slippery slope. I don't get into the habit of paying tenants for things that go wrong in the course of living in a home or unit. I fix the problem fast as I can. In any case, if they owned their own property who pay them if the air went out or a shutoff burst? Even my current home has problems that I need to address and haven't because when I get home I don't feel like messing with repairs unless they are serious issues. Tenants sometimes can have expectations that are a little unreasonable. No property is perfect and the good tenants know that. 

I own 12 properties. I've cashed out a property to receive a $100k loan/payment. I planned on using the $100k and fixing up 2 properties. My new MTR and my apartment complex. But after finishing the first MTR I'm left with only 35k. I need to keep the 35k to operate and as a small cushion just in case stuff goes wrong with other properties. The apartment needs about 30k to finish.  Now I'm faced with some choices. Cash-out the newly rehabbed MTR property. It's probably worth 160-170k. 75% of that gives me 125k then finish the apartment rehab. The second option is cross-collateralize all my assets which would give me a much bigger bag, then I could fix the apartment and buy more real estate for flips, buy and holds, and whatever other strategy I decide. 3 sell the MTR outright and get about 150k but lose the MTR cash flow.  Any thoughts will be appreciated. Is there another choice I haven't thought of?

 They pay on time. There's a one month delay before they start paying but the first payment catches everything up. There's also a scheduled inspection I don't care for. I've only done a few of those and it wasn't for me but the tenants were normal.

I use a google voice number that routes to my regular phone. Tenants are asked to text me but in serious matters call. In the case of water damage, I want to know as soon as possible, so I can get over there and assess. So I take the calls because I want to get at problems fast as I can so I can get back to the regularly scheduled stuff I'm doing.  The way I've always looked at it is, even if you hire or pay someone or service to take the calls, I still end up dealing with the problem but in a slower manner. My advice if you are managing, is go ahead and manage. It's not that bad. Good luck!