All Forum Posts by: Ron S.

Looks like your maintenance costs listed as Annual Operating Expenses aren't used in your Total Operating Expenses calculation (and it should be a negative number when you do add it).  That would take $777 off your cash flow, in addition to the missing Cap Ex costs someone else already mentioned, which brings you down to $120/mo cash flow.  Also, talk to your insurance agent to get an accurate number there before committing to purchase if you haven't already.

I live a couple neighborhoods east and just qualitatively it seems to be relatively flat.  Market seems to be fairly normal or even slightly better, so if it's ready to list, I'd try to get it listed before the winter slow-down.  You may want to consider selling off-market too, such as through the forums here.  Before you decide on your pricing, you should also look at the zoning to see if that basement unit is accounted for and would add value.

I'll DM you a referral.

@Zack Reder I've considered this for my current house hack on the north side, but the costs for HVAC seem astronomical and would take a long time to recoup the cost.  I've gotten estimates between $30k-$60k for three floors.  What prices are you seeing and can you provide any more detail about the grant you're considering?

Location and schools are great.  I think it's definitely the square footage.  I think most personal buyers would be looking for wider bedrooms and additional space for dining.  You may want to try pivoting the ad to target investors as it looks like it would be a great rental property.

I'll shoot you a message with the PM company I use and a couple thoughts on others.

I have an umbrella policy that covers all of my out of state rentals without an LLC. I didn't hear anything about properties in different states being a problem.

The only things I ran into were that I had to increase insurance on my primary residence before I could add an umbrella policy, and then there's a cap on the number of properties that can fall under the umbrella.  I just hit that cap and I'm not sure what I'll do for my next property yet.

Sounds like she's been there for a lot more than 20 years if she's been renting since at least 1984!

Let her know that you have to increase the rent to cover rising taxes and maintenance costs but that you want to keep her as a tenant.  Maybe you can structure a lease to go from $450/mo to $600/mo over 2-3 years to make it a smooth transition.  I say $600 because that's easier to swallow (33% raise vs 55% raise), then once you're at $600, it should be easier to get up to $700 over 2 more years.

I pay $1,000/yr for a 2-flat on the north side via Allstate.  That includes ~$800 in "discounts" for having multiple policies with them.

@Jay B. I've done all my loans through Guaranteed Rate -- message me if you want my specific agent's information.