All Forum Posts by: Sandra Kennedy

FHA 203(K) loan- 3.5% down

Fannie Mae Homestyle - 5% down

(I looked into it previously, but did not do a deal after all).

I have found that property values in college towns do not appreciate much, so if you are not in it for the long term, then don't do it.  However, if you are a long term rent and hold, then go for it.  Your cash flow will be a blessing.  Great thing about college rentals is that you don't need anything high-end, and they don't expect high service, either.

I have found that property values in college towns do not appreciate much, so if you are not in it for the long term, then don't do it, you will damper the single family value.

However, if you are a long term rent and hold, then go for it.  Your cash flow will be a blessing.  Great thing about college rentals is that you don't need anything high-end, and they don't expect high service from their landlord.

Thank you for your thoughtful responses!  @Grant Rothenburger and @Paul Caputo

I failed to mention that we really need to get the concrete work done and don't have that cash on hand, so will need to finance that much at least.  The concrete is leaning towards the house and the garage drain that the washer drains into may be putting water under the garage floor (4 inch drop along a crack by drain), so will probably have to borrow for that work anyway.  Hopefully will get a better bid.  The 12k was the same bidder on the room addition. 

I was hoping to get a second property a room addition, also.  That one would bring in at least another 500/mo with an additional bdrm and bath.  But I needed the bids to be closer to 50k each.  That one is still occupied, so no rush on it.   Maybe we just need more bids.

Trying to decide if doing an addition will be worth it.  I have 6 rental properties, mostly sfr.  One property comes vacant this month.  2bd,1ba,1car,  768 sqf., worth about 150k.  The neighborhood is turning over with updates and remodels.  Very few rentals close by (at least for now, in winter), but desirable location.

We will do some updating no matter what:

New laminate floor in kitchen/hall

Siding needs replacing (have some insurance $ for that)

Fresh paint

Needs new windows (maybe).

Needs a bunch of concrete work (garage floor, driveway, stoop, walk to door).

With those improvements we should be able to get at least $1000/mo.

A room addition to add a large ensuite Bedroom/bath, and a laundry room to get the washer, dryer out of the garage, the bid came in at 59000 (This includes the siding).  The concrete was another 12000 (high).

With all that, the rent should be $1400/mo. (If we don't try to rent it in December).  There is no current loan on this property, so it makes my head hurt to refi it.  But I am thinking on taking out 120k for all. 

 Is the remodel a good plan, or forget it and just do the cosmetic stuff?

It has a big back yard, but no room on the side to expand garage.  No basement.  Inherited from parents a long time ago, want to keep, good location.

Love Bigger Pockets and all of you out there!

Thank you all for your help!

I would love to have your property! You are in the perfect position to take advantage of a hot location, and you already have your property upgraded to go with the up and coming neighborhood.

My advice is to send out stiff rent increases as soon as the end of the current lease approaches.  If they balk and bail, you advertise it for even more.  Start getting the curb appeal way up so people start talking about that cute (or clean, or sharp) place.

Screen, screen, screen your tenants, require income to be 3x or 4x rent.  Yes, studios and 1 bedroom apts have higher turnover sometimes, but if the location is good, people will stay.  When you screen, do not take on anybody problems, it is theirs to deal with.  I am guessing that is where your headaches are coming from.  If they have a story for you then go to the next person.  Would you give them the keys to your car?  No?  Then don't give them the keys to your house.  Sorry for the rant, we have learned our lessons the hard way.  Oh, and absolutely do not rent to as my relative.  They won't pay and what can you do?  Charge pet rent and get a pet deposit.

This one will start cash flowing nicely for you soon.  And Kick your bank to the curb.  They don't want to see you succeed.  They may be ultra conservative since you don't have a long history in rentals and/or because you are a woman (it happens).  If you can wait it out just a few more years your property should be up even more and you can cash out refi, purchase another propety and keep the cash flowing on this one.

Once you have tenants that pay on time, are happy with the place and stay for several years, you will be much happier.

Has anyone heard of Mazumausa for virtual bookkeeping/accounting? They seem too good to be true.  I just want to see if they are legit?  Who do you use, if you do this virtually?

A rental we had was so bad we ripped all the drywall out and the HVAC.  The tenants had smoked for nearly 40 years in there, plus horrible roach problem.  Found a lot of old, inactive termite damage that had to be fixed, so maybe good that we gutted it.  Moved the HVAC to attic to free up room to move the linen closet from the bathroom to the hall.  Made a beautiful, bigger bathroom.  Went from $650/month rent to $1335/month, after over a year of rehabbing.

how so i reregister my husband and myself to attend Tuesday evening?

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Can your pm software import an excel or .csv file?  It may be easier to enter the data into a spreadsheet and then import to your software.  Then you can also print a "tape" to go with the deposit for the bank.