All Forum Posts by: Trevor B.

New windows, new insulation, new doors, new sheetrock I would use 5/8ths fire core sheetrock, but this will cost a lot of money and at least a month in work. Solar panels, replace furnace, new thermostat.

Now a cheeper way would be to reseal all windows and doors, and a new thermostat. 

I am a little confused, why are you worrying about heat in the middle of summer? 

Investors make more money in the long run, because it is passive income and you do not have to pay taxes on the money you make, or not as much taxes.

Howdy, and welcome to real estate!

1. I didn't major in anything I just got my EMT license, it has helped me in the following ways: a) knowing what a house should NOT look like. b) Better people skills. c) calmness during crisis.

2. Any age, the sooner the better. It is never to early to start planning for retirement!

3. I assume so, but I do not know for sure.

4.Yes always have insurance even if you are going to hold on to the house for a few days. You do not want to have to pay for a house in flames out of pocket.

5. Texas is the best state to do any business in bar none. There is a reason why so many companies moving to Texas, like Toyota is moving to Plano, TX. Texas has some of the most landlord friendly laws in place. Like the day you start the eviction process the you can show up with the police/sheriff, 21 calendar days later and kick the tenants out. 

6. Calendar days are different than business days. 

7. You do not need a real estate license to buy properties to rent out to help pay your way through college. I have a friend who bought a quadplex, lived in one side rented the other three and did not have student loans or any debt (save the house) by the time he graduated college.

Hope this helps!

So if you go with the 7/1 ARM you will save $19,000 over a 30 year fixed rate?
I personally prefer 30 year fixed rates, because the 2008 recession was partly caused by those variable rate mortgages, and that you'll have a lower monthly mortgage with a 30 year mortgage. I personally think ARM should be illegal, but that is another story. I think the Fed will up interest rates at least to 4% by 2020, just depends on who is the next president and how this Brexit thing plays out. I say stay with the safe, because what if something crazy happens and the economy is exploding and the Fed decides to jump interest rates to 6 or even 7%, then you sir are SOL, or what if the bank just wants to do that because they can?

First off, love this thread! I have read every post!

One of the biggest killers of HW heaters is no one does maintainence on them. Once every two years (at my house) or once every time a tenant moves out a plumber goes in and drains the bottom water out, so as to remove most of the gunk that gets stuck at the bottom of the tank. Whether it be sand, a rusting water tank, stuff missed by the water treatment plant, ect. My HW heater in my house is now 15 years old and was only warranted for 6 years. 

To "harden" my rentals every time a tenant moves out I send in a team of HVAC, Plumbers, Electricians, Painters, and appliance repair workers to bring the unit to as good as it can be. That means servicing the HVAC, making sure there are no leaks in any water lines, make sure all lights still work and repair any damaged electrical wires, spot painting the place, and servicing the appliances. Sure this costs me a little bit, but it will make sure I get every dollar out of the equipment I put in the unit and it helps with extending the life of the unit. If the unit is rented for more than a 1 year lease I will send the same people to the unit to do the same thing at the 1 year mark. This gives me peace of mind that I am not giving my next tenants a place that might crap out on them, and I know I am doing what is best for the tenants, the home, and my pocket book. I would rather pay a few hundred dollars a year for preventive maintenance then wait for something to fail, and have a huge problem like HW heater breaking and flooding the entire downstairs and having to replace the entire bottom floor, because it happened at 2 am, and the tenants didn't notice till the next morning... Plus having the cost of putting them in a motel till rehab was done. Sure insurance covered it, but I would rather know that a 6 y/o HW heater won't break at any moment. I of course add $15 to the rent, plus anything I add to the rent to increase it over market value I explain to my tenants. 

I see it more as if the tennant has a lower electrical bill, it means he should be able to pay me my rent. Here in Texas solar panels decrease average electric bills in the summer by $100-150 a month, and that is quite a bit of money that could be used to pay me. Also as @Jeff Schwarz said it increases the value of the property. I could easily justify a $50-75 up charge on the property over other rentals due to the money being saved on the electric bill. Just in my neighborhood there are at least 12 houses with solar panels out of at least 120, with more being added monthly. 

On the plus side if I do install a $10,000 system I get $3,000 back from the feds, and my property value will go up anywhere from $10,000-$30,000. I do not have to worry about pesky HOA's and them telling me where I can and cannot put my solar panels due to a law that Texas passed this year, making that illegal. Sounds like a win to me.

I would just go to the bank and get a normal rental mortgage at 30 years fixed rate, so that way you will still have about $32,000 in the bank for the next deal. IMHO Leveraging your property to help make you more money is always better then owning it free and clear. Here is why: 

The monthly mortgage will cost you maybe $100 a month, and with interest rates low right now you want to take advantage of that. If you wait a year and then get the loan because you found a great property it might be to late and the mortgage will be higher, because the US Fed will raise rates by years end. Lets say you don't do the mortgage you gain an extra $1,200 over a year. When you could find another property that cash flows at $400-500 a month. I saw mortgage it and use the left over money to buy another if not two more properties. 

@Chris Erwin Would you mind sending that to me as well? 

Has or does any one hire an A/C company to do an annual cleaning of the HVAC system? to prolong the life of the unit and reduce chances of problems?

I have always loved Trane. That is my home HVAC with no problems 10 years running in north Texas.

I am new to this forum, I searched for solar and found nothing. I live in North Texas.

So my questions are:

1. Is it cost effective to put a solar panels on the roof? 

2. If you do put solar panels on the roof would you include electric in the cost of rent or still have them pay the electric bill separately?

3. Would y'all do other energy efficient updates to the house like new windows, insulation, and doors, even if not needed?

4. Finally how much would y'all up-charge in rent for these additions?

Thank you.