All Forum Posts by: Rodney Mullins

Welcome Jeremy,

I would change your statement to "I will make my first offer within 90 days" to make it more concrete.  Good luck and take that first step.  Once you get things rolling you'll regret waiting the last 10 years out.

Rodney

Ardo

It seems you might have a line of communication with the squatter. Find out why it is that he feels he needs to live there for a month. See if its a problem that can be solved creatively rather than legally.

I purchased a property that was occupied. Rather than going through a long eviction process I talked to them.  The reason they wouldn't or rather couldn't leave the property was because they didn't have the money for a security deposit and first months rent on a new place to move into. I asked them if I paid their security deposit would they be willing to move without going through the eviction process.  They immediately said yes. I arranged a mover for them and the day I provided them with the security deposit (it was actually given directly to their new landlord) they were gone and the problem was solved in less than 4 days. It was less than I would have spend on the eviction and the time waiting.  Was it money I should have spent, No but neither is the cost and time value that an eviction would have taken. But the problem was solved and I was able to move on with my plans for the property.

See what the true root of the problem is and see if you can help fix it. It might get you further than taking the standard eviction process.  But no matter what you decide act quickly.

Good Luck

Rodney

Welcome Brittney

My personal take on Rual properties is this: It limits your potential pool of renters. A big negative in my opinion.  If you have this awesome rental property that on paper will cash flow but you only get one rental application in six months because it is too far away from where people like to eat, shop, etc then it will truly limit you.

You really need to do the math on the properties and research what your available pool of renters will be. In Brandon's book on Rental Property investing he gives you all the information you need to answer that question for yourself. There are also spreadsheets available in biggerpockets.com/files to help you evaluate these properties.

You can also ask other Real Estate Investors in your area what is their vacancy rate. Ask renters in that area what they are paying for rent. Research. If you look up the property on Zillow it will give you a general idea of rent but this number can be way off.

Rodney

Welcome George.

Being fairly new here my self the best advice I can give is read as much information as you possibly can on Biggerpockets, listen to podcasts subscribe to the youtube channel. All this is available under the Education tab at the top of the page. There is so much information that has already been posted.  I would start by attending any of the webinars given by Brandon. I am currently listening to the audiobook on Rental Property Investing by Brandon Turner.  I am on chapter 14 and it has already helped me to better evaluate a deal I was considering. Brandon's book on Managing Rental Properties will be my next read.

Rodney

Hello Mark

Does not matter so much where the money came from but rather can you show where it came from.

A receipt for selling livestock, or from the scrap yard etc.  Always have a paper trail for where your funds come from esp for that 2 month period leading up to your applying for a mortgage.

I have a tenant who likes to pay their rent in cash only.

This created a problem for me as the deposits were just that cash with no record other than the rent receipt I was unable to claim 800 per month in income for a recent purchase because of this.

Now I will only accept a traceable form of payment for rent. 

Also if you deposit more than 20% of your gross monthly income into your accounts in cash this can cause a problem also. 

Always be able to source where your funds came from.

Good luck finding your receipts

Rodney

I currently have 3 condos as rentals. My properties are mortgage free. I have rehabbed 2 of the units and am in the process of bring the 3rd from the 70's into this era. I'm looking into houses and multi unit properties. My goal is to have cash flow during retirement. The house I live in will be my first Single family as a rental and the only one I have a note on. I started in March of 2009 with a 1br condo I purchased for 25,000 sold for 35,000. November of 2011 with my second unit. Purchased the 3rd in November of 2013 and the 4th less than a month later in December of 2013. My 5th property a 3br 2 bath house was purchased in July of 2015 for 44,600 with 35,000 in equity. So far I have lived in 3 of the 5 units I've owned and rehabbed while living in them. My father was a general contractor for 30 years and my mother has a commercial cleaning company for new construction that she has been doing for 30 years also.  As for myself in addition to being around construction for all of my life, I have a dual major in accounting and finance with a minor in economics.

Thanks Everyone. I look forward to learning and growing my business.

Rodney