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All Forum Posts by: Scott W.

Scott W. has started 95 posts and replied 1263 times.

Post: What's the craziest bid you ever received?

Scott W.Posted
  • Real Estate Investor
  • chicago, IL
  • Posts 1,284
  • Votes 231

earlier this month, ac went out at 1 of my rentals. it was a saturday afternoon, 100 degrees & humid. needless to say, my normal HVAC contacts were busy. i got a kid out there; he told me I need a new condensor & wouldn't be able to do it until monday. he thought a condenser w/ go for $500 + $200 labor. on monday, says condenser goes for $900+! I say, "hold on!" & get another estimate. needed a capacitor & cost me $160 all in.

moral of the story - always get more than 1 estimate.

Post: Are LLC, business name, website, and cell important at the start?

Scott W.Posted
  • Real Estate Investor
  • chicago, IL
  • Posts 1,284
  • Votes 231

if landlording just 1 or 2 properties, get a personal umbrella insurance policy; much cheaper than doing an LLC. I know others may insist on an LLC but the cost are too much after considering your downpayment, renovations, maintenance/vacancy/eviction/emergency fund costs. as we all know, running a home is expensive.

Post: Homepath.com question

Scott W.Posted
  • Real Estate Investor
  • chicago, IL
  • Posts 1,284
  • Votes 231

I have notice homepath offers a deal for investors where you can put down 10% & not pay PMI. Sounds like a deal too good to be true? Their prices seem rather comparable with other foreclosure comps.

Is their deal too good to be true?

Post: How to find Market Rents?

Scott W.Posted
  • Real Estate Investor
  • chicago, IL
  • Posts 1,284
  • Votes 231

Call an agent & have them send you comps for what they rented out for. it will have pics of the interior as well so you can get a good idea. also, it'll list the vacancy time.

with rents going higher, i get counter offers from possible renters. i will tell them i have the comps & can send them over. this stops the negotiation process rather quickly.

you can do the same when raising the rents on your current tenants as well.

Post: New Member from Denver area

Scott W.Posted
  • Real Estate Investor
  • chicago, IL
  • Posts 1,284
  • Votes 231

wow, depending upon how much $ you had to put in for rehabbing (to make them rent ready) you're doing very well. 42% gross margin on your 20% down home is fantastic. where else can one get a return on $ like that?

Post: New Member from Denver area

Scott W.Posted
  • Real Estate Investor
  • chicago, IL
  • Posts 1,284
  • Votes 231

welcome aboard!

how much are your monthly fixed costs (PITI) + association fees? how much did you put down on each unit & what year did you buy? how many br/ba/garage?

Post: should I keep or sell?

Scott W.Posted
  • Real Estate Investor
  • chicago, IL
  • Posts 1,284
  • Votes 231

thank you for your response, leon. depreciation is a catch 22...don't you have to add on depreciation of the property once you sell? yes, i can keep raising the rent & get rid of that PMI hopefully in 4 years, which will greater increase my spread.

Post: should I keep or sell?

Scott W.Posted
  • Real Estate Investor
  • chicago, IL
  • Posts 1,284
  • Votes 231

& 1 more thing; remember my wife only put 3.5% down. hard to cash flow it when you do that near top of the market & paying $90/month PMI. So leverage is very high, which is good.

Bring cash to the table in 4 year & can certainly cash flow this much better.

Post: should I keep or sell?

Scott W.Posted
  • Real Estate Investor
  • chicago, IL
  • Posts 1,284
  • Votes 231

steve, the refi did not require an appraisal last year; it was underwater so there's a government program which doesn't require an appraisal & can still refi.

lynn, i have not spoken to my lender about a SS. I live in Illinois. since it has now been converted to an investment property, I believe I would be responsible for the loss.

Post: should I keep or sell?

Scott W.Posted
  • Real Estate Investor
  • chicago, IL
  • Posts 1,284
  • Votes 231

my wife bought it for $109k in 2004; i'm guessing it's worth about 65k. in 4 years, i can revisit to get rid of the $90 PMI. I currently have $120 towards monthly principal.

I have had 2 tenants & a total of 9 vacancy days. My total repair/upgrade/maintenance costs have been roughly $4000 (most being two new windows of $820). Has new furnace.

My current tenant renewed her lease another year; I inspected the property & she has kept it in immaculate condition - she doesn't even put pictures on the walls! So hopefully, that will help minimize costs if/when she moves out one day.

I don't mind the aggrevation; as a matter of fact, I enjoy being a landlord. I am learning how to get more handy & save on labor costs.