All Forum Posts by: Royce Talbo

@Fernando E. $125k in waikiki for a 1bed is most likely a leasehold with with less than 30 years left. lenders wont lend to properties with leaseholds less than 25 years if i remember correctly. if it is leasehold then you need to add in lease rent. also dont assume capex is 5%, the association takes care of capex(everything from inside the walls to exterior), so find out what the maint and association costs are.  8% pm is too low.  if its not leasehold you found a diamond in the rough. its almost impossible to find something like this on oahu. nothing cashflows off the bat unless you put a large down.  for hawaii in the long run everything appreciates and with true appreciation comes rent growth. 

@Eric Sebast i dont know nashville but i have seen PM add on a bunch after the 10% so he is probably including everything that the management company handles. I agree with him though 10% is too low. say you are renting for $1000/month. PM charge 10% or $1200/year just to manage, then 1st month rent for placement so another $1000, then they upcharge you for any repair calls. with out repairs you are already looking at 18%/year, including repairs and upcharge on those repairs could come out to 30%. remember property management companies dont have your best interest in mind they are looking to make money off of you anyway they can. if not they would go out of business trying to find the best tenant that pays rent on time doesnt leave and takes care of the place so it doesnt need fixing.

In the past I have used Lowes stock shaker cabinets for my rental, but i found that because box is presswood and the doors are laminated mdf, the base cabinets doors swell if liquids get on them and not immediately cleaned. the cabinet also swells if there is a leak. my thoughts for my next rental were to go with all plywood cabinets and doors, but they cost almost 3x more. then i though maybe i can just buy the plywood cabinet lowers and buy the cheap stock cabinets for the uppers since people dont usually put wet dishes or spill things from the upper cabinets. has anyone done this? is too noticeable of a difference? color would be white and this will be a long term rental so i want something that will last.

@Gigi Smith I would do as everyone stated above, you have been generous long enough. 

Idk where you live but if its a high humidity area this could be the problem. My dads rental in Hawaii had water on the floor from the fridge. everything looked ok, no waterline to the fridge, but noticed after the second time that the catch tray was overflowing. it was too hot and humid that the fridge was working overtime and the tray didnt have enough time to evaporate. we emptied it and we never had water on the floor again. also if its high humidity and they leave the fridge open too long it was collect all that humidity and condense when it gets cold, leaving water on the bottom. 

Quote from @Bill B.:

So you’re beyond 1 year to make it capital gains instead of regular taxable income? That’s a start. But making it tax free at 2 years would be nice. 

Luckily you’re only talking about a $20-$25k gain after closing costs before adding  any costs to update it. Since you’ve owned it a year you’re talking 15% or $3k, less than half of what you’re going to give the buyers realtor. Sounds like a no-brainer. 

I dont know how capital gains really works but i thought if its over 1 year and under $40k its zero taxes. if its in the next bracket its 15% and if its less than a year its regular income. is that correct or is it different because he is living there?

@J Zev J. thanks Ill see first if anyone has POA, if not then Ill ask if his kids can be looped in on the texts

@Theresa Harris Im not sure if anyone has POA for him, ill have to find out. I was thinking of those options, but wasnt sure how the law works. especially for people with dementia, as he seems to understand and grasp everything we talk about but just cant remember some things sometimes, so he asks for emails or text.

I came across this elderly man through my work and he mentioned about selling his place and asked if i knew a realtor. He wants$770k arv is $1.1m from what he described needs about 100k in repairs. Going to look at the place next week.

The thing is he mentioned he has dementia. Wife passed no children living in state. How do i approach this without looking like i am taking advantage of the elderly. Again he brought up the subject of selling not me.  

@Andrew Tucker I looked copied and pasted grand rapids metro real estate investors in fb search but couldnt find the group. do you have a direct link?

Just wondering for those who did seller finance or sub to what happen when covid hit and tenants stopped paying?

for seller finance how did you negotiate with the seller if the seller is depending on that monthly income and you only had reserves for 6 months but the eviction ban was like a year?

for sub to how did you negotiate with the bank since the loan is not in your name?