All Forum Posts by: Sean Autry

I'm using listsource to build a list of multi family properties in my target areas: Apple Valley, CA and Hesperia, CA. Using the below criteria, the list is only yielding 515 results!!! Do I even bother with this list? Or do I find another farm area? I really want a multi in THAT area (see context below to see why). But I hear so often about people mailing lists of 1-2 thousand properties to find 1-2 deals... This will be my first mailing campaign, so any input from seasoned investors is welcome. I plan to drive for dollars as well, but I view the mailing list as the one thing that casts the widest net- and right now that net doesn't look so wide. CRITERIA City: Apple Valley/Hesperia Equity: 30% - 100% Prop type: multi, duplex, triplex, quad WHY THAT AREA: I have a triplex in Apple Valley, CA (my first investment property), 2 hours from my primary. Since I've acquired it, I've established some contacts out there that make self-management painless for me. I do the management and have some boots on the ground to execute under my direction. It's working out very well. Given the above, I really want to find other rentals in that area (Apple Valley or Hesperia) so I can take advantage of that mini network I've built.

Also, Scott Davidson is correct that appliances would not be applicable, but perhaps the above guidance will help you navigate future expense items.

See below copied directly from the IRS website: Safe Harbor Election for Small Taxpayers- You are not required to capitalize as an improvement, and therefore may be permitted to deduct, the costs of work performed on owned or leased buildings, e.g., repairs, maintenance, improvements or similar costs, that fall into the safe harbor election for small taxpayers. The REQUIREMENTS of the safe harbor election for small taxpayers are: *Average annual gross receipts of $10 million or less; and *Owns or leases building property with an unadjusted basis of less than $1 million or less; and *The total amount paid during the taxable year for repairs, maintenance, improvements, or similar activities performed on such building property doesn't exceed the lesser of: -*Two percent of the unadjusted basis of the eligible building property; or -*$10,000 (for questions about how to calculate the unadjusted basis, refer to "Figuring the Unadjusted Basis of Your Property" in Publication 946 You make the election to use the safe harbor for each taxable year in which qualifying amounts are incurred.

Bumping this once for good measure...

Have any landlords out there had any experience with Tom from AGP Evictions up in Apple Valley, Victorville, or the high dessert? We've been working with him these last few months to serve 3-day notices to our tenants. We've really liked him and we're about to expand our use of his services. Before we do that, I'm wondering who else on BP has used him and what did they think. To my knowledge, he is not a BP member.

Cornelius Garland , sorry- can you define TLO?

Yep- you can do this. That's how I bought my first investment property. The bank will just want to see that you can prove source of funds (prove the funds came from your HELOC). The only area where you could run into trouble is if the HELOC pushes your DTI (debt to income ratio) over the loan program's max limit.

For my wife and I the key frugality has been: -we drive inexpensive cars (Yaris, Escape, both older and used) -RARELY eat out at restaurants -one vacation per year- and it's camping within a day's drive from home (and we already have the gear) -small affordable home (bought in 2012 at the bottom of the market- that was just lucky timing) -0 use of credit cards -and hard work to boost earnings That last one isn't so much frugality- but has been the biggest key to saving for us. I do everything I can to make myself a more valuable employee, and then staying frugal allows us to keep whatever extra income comes from that.

When is their lease up? Why not just step up their rents upon renewal? If you have good tenants keep them... I'm dealing with a few bad ones now, and it's just not worth it to roll the dice. If your assessment of the market is accurate, then stepping up rents on the existing tenants is reasonable.... they still may not have a cheaper alternative, so you shouldn't feel bad about it.

Greg S. - Thanks for the post Greg. In the previous months I would send firmly worded notices that they're being charged a late fee and MUST pay on time and come current immediately or risk termination of the lease. Even still, this was a rookie move and I should have gone straight to the 3-day from the get go. I thought my notices were sending the message that paying late is NOT okay; but I think they perceived the message to be "oh, I can be late and just have to pay a small fee"... Unintentionally, I was training them that it was okay. Lesson learned!