All Forum Posts by: Reaz Ahmed

I contacted AUI Realty as recommended by Ndy. I did get a fast response from Kymberly via email. They charge 10% of rents, which is normal; however, they charge an additional screening fee equivalent to a full months rent.

Any companies that manage for 10% flat (no other fees)?

Lease

I can't think of any reason why anyone would want month-to-month. You may be be able to charge a slightly higher rent for this option, but they can leave at any time, leaving you with rent-ready costs and time to find a new tenant. In the long run, this option will cost you more.

I prefer to lock tenants in a long-term lease. Twelve month is the standard, but I go as far as to offer a discount for a 2-yr lease when I have a good tenant.

Utilities

Never would I want to pay upfront, then attempt to collect, unless that was the last resort. 

Based on what you said, it sounds as though the duplex isn't separately metered. In such a case, I'd get annual estimates of utility costs, pay for it myself, but adjust/increase their rent to be all inclusive. 

You may consider splitting the meters at some point in the future.

Lawn

If it's a side-by-side duplex, you can easily partition the front/back yards and make tenants responsible to maintain their respective areas. If it's not laid out that way, you will have to maintain the lawn.

You can always offer an incentive to one tenant to maintain it for you.

Snow

In my experience thus far, tenants have been responsible for snow removal. But I'm in the US and not sure if regulations are different in Canada.

Definitely NOT normal. If it were, we all would be investing in management companies lol.

For a second there, I thought I was reading my own post. I too fear putting most of my eggs in the same basket. 

I can certainly relate to your situation as I sometimes feel the same way, even though I did make that jump several years ago and investing in a small town I never visited. 

I research every day and see deals all over the US, but always find it easier to go back to that same town. The main reason being the network that I've established. There's a level of comfort there.

The key is, as Nicole pointed out, to network. For me personally, it's finding a good PM. They can really help guide you.

My next project will definitely not be in the same town (crossing my fingers).

My preference is always to find a property with tenants already in place (good tenants of course). 

If it's a new investment in a new area, then having a PM already in place is a bonus (again, a good PM company).

I have a few older homes and haven't had any issues. Just make sure that the foundation is sound. Getting it professionally inspected is a must!

I did have an incident when doing a light renovation. Because it was in a small town, the city got wind of it and got involved and required me to get permits for everything and bring everything up to code. I had to put in new electrical and plumbing, which was costly. It turned into a major renovation project, but it all worked out in the end. 

You didn't specify if that's gross or net.

You might be able to hit 50% of your target (that would be $2K gross monthly income) with what you have.

You can target a C- neighborhood and shop for a fourplex property with 2bed/1bath units, bringing in $500 in rents per unit.

Your price target would need to be <= $120K. A 20% down will eat up your savings. Note that you should always have a reserve for "when sh!t hits the fan" fund. Finding a 100% occupied property will certainly help bring in immediate income.

These types of deals are out there, you'll have to do some research to find them.

Good luck!

I just opened a FA position if you're interested in relocating to CA.. j/k.

It's great to have goals and a timeline. It's something that keeps me motivated. Once you have one that falls in line with your projections, you'll want more!

Anyhow, welcome. I'm sure you'll find a wealth of information here.

I'm unfamiliar with the requirements in Cleveland; however, I own a home that was converted into a multi-unit property, but the meters were not separated. As a result, I pay all utilities. I use the annual average utility costs and factor it in the rent. 

I  have another property where the trash is billed only to the owner. At first, I had listed rent of $1050 and $35 trash reimbursement baked into the lease and never had any issues, mainly because it was fixed. I eventually just made the rent $1085 to simplify the process.

It will get very complicated if you try to charge a different amount every month on top of the rent. I'd recommend incorporating the cost into the rent.

Hope that helps.

I always prefer owning your primary residence over renting; however, you need to consider the cost. 

I would muscle in as long as the numbers work for you. I would advise against buying something you can't afford, even though you may qualify for a loan.

I'm not familiar with ADU; however, I know many people who have converted their garage without permits and rent them out. Having that option can be a huge help with your mortgage payment and property value.

Regardless of what you do, I would continue to invest out of state. Even if you find a property in CA, chances are, that property alone will not offer you financial freedom.

Good luck!

We would all be guessing here without actual numbers. 

I recommend speaking with a loan agent and going over your numbers without actually applying for a loan. That should give you a clear idea of your odds.