All Forum Posts by: Steve Brown

I agree with James Wise.

Is it worth it?

If you don't want the 2 dogs in the place then you could evict. But is evicting worth the hassle over a dog.

If they pay on-time or early, count your blessings.

But I would try to keep the tenant

Charge for a second dog, pet deposit $100, pet fee $100 and pet rent $25

and have the the second person go on the lease, then you have a better legal remedies.

That would be my Cure or Quit solution.

Try RENTOMETER.COM

and

https://www.crimereports.com/states/FL

Ask a realtor.

Go forth and conquer!

Sounds like you are a Lindahl student.

Check out the Milken report. 2017 report is published in December, look for large jumps up the list.

http://www.best-cities.org/

Go get 'em

1) Make sure you know they are reputable.

2) Go see some of their properties.

3) Research the crime in the area.

4) Mid west will give you $30-$40k houses for rent, I try to do $75k in Dundalk, MD

5) It is possible

Go and Be Careful

Seems like yo got your answer. I don't accept cash and I don't pick up rent. My tenants don't all have a way to use the electronic payments. And those that can don't want to pay the fee (because I'm too cheap to pay it). But they all mail me money orders. (Wait a minute mister tenant, don't you think that the cost of the money orders, and the stamp, and the envelope) cost more than the transaction fee the payment company charges? Anyway) Plus there is no paper trail for the tenant. Google Rent Payments and see what you find. And check this out

https://www.biggerpockets.com/rei/pay-rent-online-...

Go get some rent!

Sorry I don't have a picture yet. I'm in Maryland. I have been investing since 1987. I have been doing SFH flips and rentals. Now moving into Multifamily. Passive Income means rental income. I would actually tell you with your capital you should head to a multifamily that you purchase for at least $1,250,000 or more.

There  are headaches with SF rentals have grown as I have expanded that I didn't think about at first. There are 2 are big ones. Tenant placement costs and loss income when a tenant moves out. In my area it costs a months rent to find a new tenant. And when a tenant moves out it may take 60 days to fix up and then find the next one.

So if rent is $1500 a month and mortgage (piti) of $700 that leaves $800. Your really aren't making $800 a month because you need to set aside a percentage for maintenance, CapEx, and vacancy.

Let's break it down a bit further What's the cost of vacancy? Well some say set aside 5%, some 7%, some 10% ($75, $105, $150) of the gross rent. For this property let's say you are putting aside 10% for vacancy.

So to find a new tenant it costs $1,500 to find a tenant and it takes 2 months to find a tenant ($1,400 mortgage expense), and $300 to get the place ready (they didn't do too much damage) so total is $3,400. So a tenant needs to stay for 23 months to have saved enough to replace the tenant. But you didn't include your profit in there, so cut your budget by say $300 per month of no tenant.

So am I saying you shouldn't do it? Nope, I am doing it. These are things I didn't really think about when I got started.

So why do I say buy a multifamily that you purchase for at least $1,250,000? Because if you can have a mortgage above $1,000,000 it can be a non-recourse loan (if not a a local bank) which means if they have to foreclose then all they get is the building.

A multifamily of 4 or 5 has less likely that all the tenants will be gone in one month. You may not get the same rental amount, and there are more expenses, and you may make less per unit than a SFH but the re is safety in numbers.

But buying a multifamily is not like buying a single family - you need some help. I suggest Michael Blank or Dave Lindahl.

Two closing notes.

Go get the HELOC so you have money available that you can access.

Find a local investor that has a mulitfamily deal that needs to raise money in a syndicate. Then invest $50,000 or $100,000 and tell them you need to be on the management team. You won't manage the property but you will learn a heck of a lot on how to analyze a deal, structure a deal, work a deal. But don't tell them how much you have, ask them what's their minimum.

Go forth and replace your W-2!

I am looking for a great property management company in the Richmond, Virginia area. I am about to wrap up a 96 unit deal and would like to investigate my options. Any help would be appreciated. Also a good inspector would help.

Amir, You probably have your answer already. But if yiu supervise can hire guys outside of Home Depot cheap. I've never done that. But I have hired through an agency at $17 an hour. Anyone know of a mason in Baltimore?

Hey Northern Vermonter Investor,

Keep an eye on LimaOneCapital.com. They aren't in Vermont yet but they are growing fast. If you are OK with refinancing for 75% of value and paying 8.5% interest on a 30 year mortgage then they will be the solution when they get to the state. I use them to finance my rentals in another state.

Hi Gita, Thanks for the offer I may be calling you.

Hey Dick, Yes I have two different company accounts and two different checkbooks.

My problem is that all my sect 8 checks come in under the mgmt EIN but all the expenses they pay are the PROP owner expenses.

So if $800 in rent comes in to a single operating acct
and the mgmt pays $500 mortgage pymnt
and then pays prop owner $300
The mgmt company has $0 income and $800 expenses EXCEPT

$500 of what is paid out is really a mort expense for the PROP owner, and is recorded that way in quickbooks.

So how do I expense that as a $500 payment to the PROP owner, and what do I call the $300 pass through payment to the owners

Right now, to me for the mgmt comp, it looks like
$800 income
$500 mort payment expense for owner
$300 owner pymnt
$500 pass through money paid out on behalf of owner
-$500 net

I know I'm missing something but I can't figure it out.

Steve