All Forum Posts by: Tom Burke

Does anyone have suggestions for wording on a one-year lease renewal regarding:

1. Now requiring renters' insurance on the renewal (I'm a new owner and the former owner did not require it) and,

2. Expecting that the unit will be in "move-in" condition upon the current tenants leaving at lease end?

Thanks in advance

Thanks Dorothy!  I asked the question after seeing a course online for $99 after seeing other costs from different courses at up to $425.  I was wondering about the validity of the $99 course.

Thanks Alan and Avery!  I appreciate you both taking the time to help me.

Is there a way to know if an online real estate license course is reputable/accredited/accepted?  Also, if it is reputable, are there disadvantages to having a license from an online course versus having earned one from a traditional, classroom-setting?

Fantastic advice, too, Shera.  Thank you.

Thanks for the first two replies Corby and Immanuel.  I’m more concerned if I allowed enough in my calculations for capital expenses, eg. funds for a roof in time, furnace, etc.  From what I hearing, I may be accounting for them closely enough by estimating the $1,500/ month for annual repair and maintenance.  Thoughts on this?

Regarding a two-unit I'm looking to buy, hold and rent: What am I missing in my calculations?  Also, do my estimates seem to be appropriate?

Data: A potential offer: $95,000  --  Closing cost: $3,000  --  Initial Renovation: $5,000 (paint, carpeting; approx 2000 sf)  --  Estimated rent/month: 1,500 total both units  --  Loan amount/I.R./term: $75,000/5.5%/30 years  --  Monthly mortgage payment: $432.00  --  Annual taxes: $1,915 --  Annual insurance: $1,000  --  Annual repairs and maint.: $1,500 --  PM fee: 10%  --  Vacancy rate: 10%.  

I'm coming up with $400 monthly cash flow, a cap rate of 9.70%, up-front cash of $27,000, with a 17.91% Cash-on-cash ROI.

I know I don't specifically call out a percent for cap. expenditures, but in your opinion, can my estimate of annual repairs of $1,500 account for cap. ex. also?

What else am I missing here? Thoughts?

Wow, I even double checked my spelling...Thank you!  (not tank you)

Clinton, Mark, Mike, Dennis, Joe, Patrick, Chuy, Thomas, Sam, Steve and Jay (forgive me if I missed anyone), tank you for the input!  I will certainly be taking the advice you all gave.  In this single thread of discussion (my first) on Bigger Pockets, I quickly got solid real estate investing advice. Thanks again.  I also welcome further discussion on this.

Yes, the rents have been at market, with tax advantages for the loss.  Original goal was to earn cash flow, watch it appreciate, then sell.  We're well below where we bought it.