All Forum Posts by: Taylor Howe

Hi all,

My wife and I just purchased a house in KC (Waldo area) we are planning on staying in for 3-5 years, and are looking to remodel a pretty outdated kitchen with resale value in mind.  We are currently looking at countertops and flooring.  The butcher block counter would look really nice with the color scheme we are thinking, but are a little hesitant because of the increased maintenance, and our overall lack of knowledge about the product.  Does anyone have experience with these, is there a general feel amongst buyers about them, and what is your opinion on their resale affect?  

We are also looking at using vinyl tiling as opposed to ceramic.  Also wondering what feelings are toward that type of flooring?

I know that's a lot, but very much appreciate any of your feedback!  Thank you.

Hi all,

My wife and I are currently looking to purchase a house in the Waldo(ish) area.  We have spoken with a few agents in the broader KC area, who have described a really crazy market.  We have put in a few offers, and have been beaten on all of them (mostly by those willing to waive all contingencies).  We are wondering if this craziness is as real as it has seemed, or if there are way people are winning offers without waving inspections and appraisals.  Right now, our focus is 100% on finding a primary residence, but would love to make contact with an agent who is also an investor as we are looking at purchasing another buy and hold property in the KC area (we own a duplex in St. Louis) down the line.

Thanks in advance!

When I run those numbers I end up with negative cash flow. I assumed 8% for vacancy as a worst case scenario, but even with 0% vacancy I still end up negative. I include a management fee even though I'm not using a company, as your time is worth something and at some point you may transition to a management service. I said 5% for maintenance and repairs, in addition to the CapEx. Again, even if you took this out, the cash flow is really low. If you take both of these out, cash flow goes to about $265.00 which is a 4% CoC. But that seems to be about the most idealistic situation possible.

I'm not a pro here, so I don't want to claim expertise, but again, seems like you don't have a lot of upside for the work.  

Hi everyone, I just wanted to get some feedback on a pet policy I will be implementing for a rental property.  The tenants have been living there for a year, and have been great tenants.  They agreed to sign on for another year lease, and asked about getting a dog.  I have laid out the fees as follows...

New security deposit of 1250 (up from 1000 originally).  I have read that having a separate pet deposit causes potential problems when identifying future damages.

Pet rent by weight

0-20 lbs $20.00

20-60 lbs $25.00

60+ $30.00

If the dog is a puppy, $40.00 for the first three months and then $25 after that regardless of the weight of the dog.

Looking for some feedback about the reasonableness of these fees!

Thanks in advance!

Taylor

I just based that off of the returns you might get if you invested in mutual/index funds (7-8% ish).  

To me I would think the risk/hassle might not be worth it if you could get similar returns in the market.  But, what @Sergio Altomare said about getting into investing while living for free makes a lot of sense as well!

I ran your numbers, and it looks to me like your cash on cash return comes out to about 2%. If you. If you wanted to get that COC up to 10% you would need to get the duplex for about $310,000 (all other inputs equal).

Just a thought!

After some further research, I'm with you.  Missouri does not require interest to be paid to the tenant, but the law states the deposit must be kept in a federally insured financial institution and funds may not be commingled.  Thus, it seems I could put it in a CD but to Andrew's point, the returns here would not be significant enough to mess with it.  Although it seems if you had a bunch of properties, this might not be a bad idea...

Hi all,

I am currently house hacking a duplex in Missouri.  I am wondering if anyone has thoughts on taking a security deposit and investing it in a liquid investment (ETF or Index funds not a CD).  

Thanks!

Taylor

When and where are your meet ups??

Hi all, I am starting to look at purchasing a property in the Fort Collins area. I currently live out of state, and am looking to start making connections with people in the area! I would appreciate any real estate agent recommendations! I also am interested in thoughts in regards to a live in flip when moving to a new city. Is it financially more responsible to live in a short term rental to get feet wet in the area, or search for a deal from out of state through an agent in the area? Thanks!