All Forum Posts by: Robert Szalay

 All the advice here and you still lean to paying her off seems illogical. Let her know the total invoices/receipts for work that was done, daily rent losses for the time it couldn't be rented due to repairs being done. I imagine the work was well over 1k. Let her know you will be counter suing for the remaining balance plus travel costs and legal fees.

it's very unlikely they would actually go through the effort especially knowing they have no chance of winning. In the remote possibility they did, you could likely attend over the phone during your lunch break. This isn't going to be a trial where you spend a week in court, it'd probably be a 20 minute ordeal where you walk away with a judgment against them and they owe you more money, that you would probably never see. Don't let her take advantage of you, you earned that 1k and then some. 

That's my take anyways. 

Good afternoon BP,

I have a tenant in my duplex in Michigan. The woman is older and lately has been having a hard time getting in and out of the bathtub. 

Are there any programs out there that she or I could use to help get her a walk in bathtub or stand up shower? 

Thanks! 

Rob

To insure my property in Michigan I googled for Michigan landlord insurance and found a broker. They compared quotes from different companies and provided me the industry to pick one. 

@Joe Thank you that is great. And I agree with you on the risk. My mom is my partner and will be able to benefit as well from opening up more funding options. Would the property have to be transferred to me in order to get a HELOC? As I mentioned she has basically no excess funds.

Good evening BP,

On my drive home tonight I had this idea and wanted to run it by some brilliant minds to see if it can be done. I am trying to find finding for my next property and I realized my mom and sister both have homes in their names which are free and clear. Would it be possible to draw a HELOC from each of them?

Main issue is they don't really have income to qualify for any loans so I would need to use mine. Can I cosign and them actually get approved? Or option B, could I transfer the homes to my name and get approved? Would there be anything I need to worry about with these strategies? 

Good evening BP,

As most of you may be aware, the year is quickly coming to an end. Under two months remaining by my last count!

So here is what I am trying to figure out. Should I worry about establishing an LLC now, before the year ends? I just closed my first buy and hold this month with a 30yr conventional and currently it is going through repairs to hopefully get tenants in next month. Hopefully there are renters looking in December but we do have a prospect.

 I'm curious to know if it would be good for establishing a business history and such since the business would then be in its second year of operation in 2015. In anticipating using the business to get loans or credit lines to move along with acquiring more buy and holds. I feel like establishing in 2014 could make the business look better for being in existence longer. 

I am in colorado and I believe it's just $50 to establish through the state. My property is in Michigan and the Llc members would be myself, my wife and my mother (who will be handling property management)

Any advice would be greatly appreciated! 

Rob

@Bao Nguyen it is a bit scary but I have family there helping with the leg work luckily

Hello BP!

My Name is Robert, and I am a noob! I have been lurking around for a little while and love all the information available here on the BP community. I am in Colorado Springs, CO but am interested in starting my real estate investing ventures in the Wayne County Michigan area. I suppose you could say I started already?...

I found a 2 unit multi-family property and have been working through US Bank to mortgage it. I have been really excited and can't wait for closing on Tuesday... Until today happened.

My loan processor informed me today that they are not going to be able to continue with my loan, only a few days before the closing. This has been pretty hard to swallow and I don't really understand why still. The reason I was given was due to the operating expenses being too high. She said there were other flags as well but the only other one she provided was that I don't have experience managing property.

I don't understand how they came up with the excuse that the operating expenses are too high. I tried being conservative with my numbers and still show a nice cash flow. And the appraisal the bank ordered shows even better than my numbers.

Property: 37,000 (27,850 mortgaged at 4.85%)

I estimated renting each unit at $600/month. Expenses came out to $2,820 per year plus $3,400 for taxes and insurance. Ending with a cash flow of $433 per month with the mortgage factored in.

Well the appraisal came back and according the their report, estimated rent was $650 each and expenses came to $2995 and the cash flow being $1,050 per month. This number didn't account for the mortgage, taxes and insurance. So they came pretty close. They estimated $175 higher for expenses than I did but also $100 more for rent prices.

Is this really too high of operating expenses?

Thank you for any feedback and I look forward to enjoying more of the great resources available in the BP community!

-Robert