All Forum Posts by: Steve Jeffries

@Arthur P.

Here are our thoughts and actions. Being empathetic to the tenant, we want to work with them, but also know that most that can take advantage, will. We have family as well as student tenants. We will not be reaching out to our tenants, rather letting them come to us.

In order to stay ahead of this, we called the local township trustees office to find out if the local government was working on any assistance programs. They are in fact awarding rent and utility bill assistance, and described in great detail what the tenant will need to bring in order to apply. We have had only one student reach out to us, and we directed them to the trustees office with a phone number and address.

Maintaining tenant accountability, we are leaving it in their hands to find ways to make rent. If it should go past that, we may implement a payment plan for one month to be divided up and included in the next 3 months rent. This will be a last resort option that will have a strict adherence policy.

Investment Info:

Single-family residence buy & hold investment in Terre Haute.

Purchase price: $50,000
Cash invested: $10,000

3 Bedroom 2 Bath College Rental

I have heard of people making an offer on a property and submitting a large sum of money as earnest money to show how serious they are. Sometimes I hear of the amount being the same as the offer. I want to attempt this strategy on my next purchase, as I may have competition, but my earnest money will be smaller then an the offer. Example: Asking price: $50,000 Offer: $35,000 Up front earnest $: $10,000 Question 1: in this scenario do you think the $10,000 earnest check have any kind of wow factor? Question 2: Will the earnest money go towards my down payment and closing cost, or Will it be purchase price -10,000+ down payment + closing cost? Question 3: do you suggest a better way of adding a wow factor to an offer?

I am going to walk through a couple properties that have been foreclosed on and are bank owned. Any strategy tips on first offer starting point? The two properties are listed separate, but are owned by same bank. Does it look better to try and buy as package deal, or does it matter?

I have the name and number for a contractor and handy man, but am looking for backups. This is in the Terre Haute, IN area, and would consist of general work across the board. Looking for remodel/finishing work as well as someone for emergency calls/small jobs.

Not sure if you are referring to a solo or W-2 sponsored 401k, but I asked a similar question. I have a W-2 sponsored 401k, and was told that you can borrow from this 401k to use as a down payment on your investment property and use it as personal investment instead of directing profits back to 401k (required with solo 401k). Now you do have to pay the loan back with interest, but the interest goes towards your 401k as well. It's like being your own bank, making money off yourself, and diversification all in one. Something to be mindful of is that if you miss payments you could be subject to early withdrawal penalties and taxes. Also, if you lose your job, you will have 60 days to pay back loan in full or be subject to same penalties and taxes. Someone chime in if I have said anything incorrect.

Mark S. That makes good sense. Thanks for the insight.

@Kelly Crone This is all just possibilities, but our two current rentals are putting out numbers that are right on with predicted numbers. I am 34 and debt of mortgage, two car payments, and $5k in credit card. These expenses are 33% of monthly bring home income from W-2 job, without inclusion of rental income. 

I have a question I am sure will get mixed answers. We have had a single rental for about 11 years now, and have recently decided to give the rental business a serious effort. We bought our second rental in May and rented it in June. My wife and I still have full time jobs, but are working towards being financially free. After watching the roller coaster ride of my work 401K, I decided to halt putting any more money in, and concentrate on putting that money towards debt reduction and new properties. I currently have roughly $40k in the account which would yield me around $26-$28k after penalties. I could potentially leverage 4-5 properties with this money that would bring in $2500-$3500 in gross income per month. Would it be wise to move forward with this?

Ha...scam. I get 2-3 of those emails every time I list a property. Usually they are either out of country or out of state. They are a doctor or have some other back story they think ads credibility. I don't even respond to them.