All Forum Posts by: Richard Slade

I have 3 properties in Bremerton.. 2 of them do ok and I'm probably breaking even long term on the other if you factor in loan pay down.. 

As Alex said and I'm sure you know the entire city is totally reliant on navy/shipyard which seems to offer both a little protection in that here is so many guaranteed high paying jobs going to people who actually want to rent not buy so keeps rents high and strong... The flip side to that coin is obviously if the navy/shipyard scales back or goes away (imo highly unlikely but it happens, shipyards close and things change) the entire city would be devastated.. 

There may be some small appreciation coming our way near term though, with the huge boom Seattle has been going through and the fact that nobody wants to drive in Seattle means a trickle down effect in surrounding areas and a ferry ride is a pretty good commute option for people.  Bremertons piece of this Seattle boom trickle down will probably be pretty minor though compared to the areas around Seattle already on the other side of the sound.

I've removed quite a bit of wallpaper in my life with the hot water and fabric softener method and have had it work very well.. 

what sort of cost range would one be looking at to completely change and update the electrical in a small house.. 

House specs for job would be single story 1000 sq ft.  Also making the job as easy for the electrician as possible in that the house will be empty and he can bust open any wall he needs to as much as he needs to and won't have to refinish after his electric work is done.. The other crew will already be doing all the non electrical work..

 I guess I'm just not understanding the thinking that cash is better used for cash flow rentals.. Granted my experience is nowhere near yours but doesn't using cash to buy rentals defeat one of the best things rentals have going for them? The fact that someone else is paying off the borrowed money for you.. If your buying your rentals in cash your losing perhaps the greatest thing about them?  It seems cash is far better used in something that returns your cash quickly like a flip than locking up cash in a rental someone else could be paying for?? What am I missing on this maybe I'm not understanding your strategy right? The taxes I can understand depending on a personal situation..

I do agree that I think I prefer the style of cash flow rentals but in my area it seems like flips are just far easier to find.. 

so I own a couple long term rental properties but I am working with a partner in my first flip.  Are experienced flippers borrowing money to buy and renovate the properties?  I'm in a situation where I have money or could borrow and I'm struggling to see the benefits of borrowing cash for this process.. Isn't one of the biggest dangers and expenses the potential to not sell in the time frame you planned for and end up paying high interest on borrowed money?  Besides underestimating your repair costs or overestimating your sale price, is this not the biggest danger?  If someone has the cash to do it without borrowing are there any good reasons to borrow?  Especially being new to flips it seems using cash helps give some wiggle room for other mistakes?

ok thanks

I have a potential agreement with my family in the works for a 2 year interest only payment loan with a balloon payment after refinancing..

My question is the way to calculate this?  These are not real numbers just example to see if this is proper way to amortize an interest only loan.. Say the loan is for 100,000 @ 5%.. Is the monthly payment amount 5,000$ divided by 12 Correct for a payment of 416$??  

I can't find anything in lease about appliance replacement.. It was my first go at renting and it was just a generic print off internet lease.. Current rent there is 1100$ and that's pretty generous already on my part as it could be easily higher... I'd rank the property as C+_B- range.. Rents are just very high in my area

I decided to order one new for 900$ that is a compromise.. I didn't put that craigslist one in there to be slummy I was really just trying to get them a working fridge as quickly as possible at a low cost to me.   it's not like it's a disaster,  it's one that if I saw in a home I wouldn't think twice about it just looks like a regular everyday fridge... Ordering a new one and having it delivered would have left them without a fridge at all for 5-7 days potentially and then they would be asking me for discounts on rent on top of a new fridge... What's the common rule on something like that?  Is it customary to give discounted rent if tenants are without a necessary appliance like a fridge?? And how would you factor that?

I have a rental which used to be my primary that tenants have been renting for 16 months on a 24 month lease..  The fridge has broken and I replaced it the next day with a full size working standard 19 ft fridge/freezer.. The previous fridge that broke was much nicer no question but it was my primary residence at the time.  

Question I have is this a slumlordy thing to do?  My tenants are pretty upset and are demanding I replace with a equal caliber fridge to the old one.. Problem is the replacement fridge I gave them works just fine and is full size bought on Craigslist for 200$.. No it isn't stainless steel, no it doesn't have a water dispenser in front door, yes it is slightly smaller than the old one, but it is in my mind a perfectly acceptable working fridge for a family of 4..  And I had it replaced the next day.. An equal cost replacement brand new is going to be like 2000$.. Are my tenants being too picky or is it my responsibility to replace an appliance with an equal one that was there at time lease was signed?