All Forum Posts by: Quoc Tran

I currently use Venmo to collect rent from my tenants. I'm currently house-hacking as well. Based on what I see in the settings, you can set up any kind of alias you want: first name, last name, username. You can also set up which bank account you want the funds to wire to, and I think this takes a few days to verify. And the best part is that it's free and already widely used between millennials to send money among friends. 

The only problem I've had was trying to deposit a whole month's income in one day. There's a daily limit of $2500 (I think) that you can deposit into your bank account. 

You'll simply have to:

1. Split the deposit into two days before paying the mortgage and use your grace period.
2. Pay the mortgage out of pocket and reimburse yourself through Venmo.

So far I've only had to resort to option two. 

@Bill Manassero I'd love for you two to chat! Only problem is... and I did not mention this before... both of my parents have English as their second language and speak mostly Vietnamese. Maybe I should invest in a translator... :)

I just finished listening to your BP podcast and enjoyed it thoroughly. Your turnkey approach gave me another idea I might present to my parents. Thank you for sharing your experience!

@Matt Thielke If you are up for doing it yourself, you can get a good pre-hung door from Home Depot for around $150-$200. The nice thing is that it's sealed all the way around and includes all the necessary weather strips. Installing it is quite simple and there are lots of tutorials on YouTube. Took me probably 2 hours, tops. This is what I did for an exterior door several years ago. It's held up just fine.

@Bill S. Thanks for the advice, Bill. I tried to do some comps in the neighborhood and that's how I got the number. I also came across this site called "Rentometer" which lists out properties in the vicinity and the going rent, and $2000 was around the average (Disclaimer: I am not advertising for this website)

@Bill Manassero I find your story very inspiring! Seems like my first step is to encourage my parents to embark on this path. My mom's all for it and is very excited about the idea. My step dad is doubtful and pessimistic. I'll have to help him get over the fear and show him the benefits of real estate investing and how to minimize risks. Bill, any advice on how to encourage my step dad to take the leap of faith?

@Susan Maneck, I agree. My stepdad has always been the person doing the bookkeeping for the last 20 years. My mom has been a frugal woman and doesn't get dragged in by the shiny things, but wouldn't hurt for someone to show her how to do taxes and pay bills (Most likely me).

@Kevin Grinstead Yes, property management is absolutely necessary at their age, and the fees would be calculated in the monthly budget if they go forward and buy a rental property. 

@Jean Bolger I checked out Windsor Gardens online and the units seem nice and cozy. It would a good place for them. The $500+ monthly HOA fee, however, blew me away. Luxury never comes cheap, I guess :)

@Thomas S. What other conservative funds exist?

I actually just came across one today using the app NextDoor. You simply add in your address and it shows which one of your neighbors are selling stuff/services. I'm using it to find renters and contractors :) 

@Matt M.

Funny enough, taking on employees was actually an idea I've pitched to her before. I like your thinking! :)

The condo market might be better for them, rather than multifamily. Something I'm not clear on is this. Would the HELOC pay for the 20% down payment and they would have to leverage a mortgage for the other 80%? I'm also researching the idea of doing a BRRRR to pay off the HELOC.

Hello @Matt M., 

I agree with your concern. Step Dad is 65 and Mama's 55. He's ready to retire, but she will likely be working until at least 60, depending on her health and how well she can manage her labor-intensive job. She has a house cleaning business, so while it's not as extreme as picking-up-bags-of-cement and digging holes, it requires a healthy body to do the job well. Grease can be stubborn :)

Another option is to have them stay at their current house and use the HELOC to buy a few properties. If you happen to know, what is the typical rate right now? My stepdad has maintained perfect credit for a number of years, so I'm pretty positive at this point.

@Account Closed Thank you for your input. My parents are in a very similar situation. My step dad is 10 years older than my mom, so it would be very important that she is taken care of financially after his passing. It's a morbid subject, but it's definitely necessary to plan for.  

That's AWESOME that your mom was able to do that by herself! No small feat at all. 

Selling their current house is an option, but considering my mom's age (55), I feel she is far too young to live off of the difference. I believe the current value of their house is around $350k. Perhaps a HELOC on their current house to afford a property managed condo/multifamily would be a better choice? Estimated rent for their current house is ~$2000 per month.

With a big repair, such as new roof or HVAC, this would have to come out of the CapEx budget. If that's not enough I would have to step in with my own money to help them. To me, this is what novice investors would have to face regardless.