All Forum Posts by: Scott W.

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.

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.

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?

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.

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?

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?

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.

& 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.

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.

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.