All Forum Posts by: Sandy Keller

This would be an investment property and not a personal residence hence the need for 25% down.

Yes I have read the No money down book.  Better read it again.  Yes I want to figure out how I can and when I can. :)  I should check and see if this house I want will go with owner financing and 10% down... That would be so much more reasonable and still give me some cash reserves to keep.

kind of what I was thinking, but also so hard to know when to jump and take the risk.   I am not sure how I will ever save enough money or find some investor who wants to get me started .  :)   But in an ideal world....or at least a less risky one, how much cash reserves would you recommend having before starting this great journey?  I keep praying God will give wisdom and let me know when the right deal comes a long.  Aside from taking all I have, this deal is just what I want... multi family and detached garage for me to use.  But I don't want to buy too soon or get my family in financial trouble. :)

Thanks for your advice.

I am looking at a duplex in northwest GA just a little south of Chattanooga, TN

I would need about $55 down. I have 20K from savings from an on line business that I will need to get out of and find a new way to bring in cash flow (hopefully rental property) I can take 17K from a Roth IRA. I have about 7K saved for real estate investment. My son may go in with me and contribute 10K.....so I think we can come up with the 55K. However, then I'd have no cash reserves for disasters. I would have mortgage taxes and insurance and no renters immediately. Mortgage taxes insurance would be about $1400 (I think) Zillow estimates top part of house could get $1500 for rent. Then I could rent the basement apartment for I am guessing about $900? I would also use the garage personally for my storage unit and save myself $300 monthly that I am paying for a storage unit for my inventory for my other on line selling business.

Am I crazy......or do I just start and advertise and hope I get renters and that it works?

I am reading the Bigger Pockets How to manage rental properties book and my son has experience co-hosting STRs.

I am not sure whether to go for making this duplex an STR, or a MTR (both of which would need furniture....but both of which my son has experience with and both of which could bring in more money than LTR, but one would never know) or a LTR. My mom has some LTRs but has a property manager. I know a little of what to do from my reading, but if I got too scared (or unsuccessful) is there anyone in the area who would want to manage it as an LTR and what would you charge while following bigger pockets tenant screening, application, and management processes?

Or better yet is there someone who would want to look at just helping me get it set up for the first time and then be there as a consultant to help in times of need....and what would that charge be?

Good points.  Especially how much they are saving by sharing and not paying base fees.

This past month we had to pay an extra $600 in water and sewer costs due to an undetected water leak.  (unfortunately it is set so landloard pays water and sewer utilities)  I really want to install flow meters so that the tenant pays water and sewage..... Perhaps that way they will take responsibility for water usage and noticing of leaking water or constantly flushing toilets.  However I have some practical questions.

1)  So let's assume the tennant at unit 101 shows the $600 usage and the other 3 tenants show normal usage.  Since each tenant with flow meters don't pay the water company directly, how would we collect the $600 form tenant 101.  Could they be evicted if they paid the rent but not the water bill.  Or will they claim the landlord has to pay the unusual bill even though they didn't report a constantly running toilet or other unusual leak, or perhaps they didn't even notice.

2) So with all those thoughts and possibilities in question 1, Is the flow meter installation on a 4 plex worth it? And how do you enforce it?  Normal water and sewer bills are about $200 total per month in the 4 plex.  Last month's was $800.  (Since then toilets have been worked on and had parts replaced and the water and sewer bills are back to normal)

3)  Also thinking of replacing window AC units and baseboard heaters with mini splits.  I am thinking if we do that first and then require tenants to pay their own water and sewage with a water flow meter.  Since they will be saving on electricity, and living more comfortably, they likely won't balk at having to pay for water and sewage and we won't end up with all our renters moving out of the 2BR 1BA units in the fourplex that are currently renting for $600.  Am I right? 

Kind of what I figured.  With all these replies, I'll never again even think about an ad I receive from a home warranty company.  Glad I never wasted money buying one.  :)

Very good information. Thanks for helping me get some good ideas and education.

 Thank you.  I kind of inherited these properties from my Dad when he went to Heaven.  There is a property manager.  I really should get him to give me a copy of the lease and discuss changes with him.  I have so much to learn and I am learning as I go a long.  I want to raise rents, improve properties and get better tenants, but it is a large job and only so many things can be done at once.  :)

What is a reasonable rent to charge for a two bedroom one bath unit in Chattanooga? Brainerd area..... Likely C area on its way to a B area with current buildings and tenants being C- type.   There is no washer drier hook up and there are window AC units.  Landlord pays water and sewer.  Tenant pays electrical.  I am wanting to raise rents, improve buildings and tenant quality, but looking to educate myself first and can't afford to lose all tenants and pay big bucks to upgrade repair.  Wondering what amount of rent I can do now in the current situation and make gradual improvements over time.

 Kind of what I figured.  Things that sound too good to be true, often are.  :)  But I wanted to hear what real people said who had or knew someone who had experience.  :)