All Forum Posts by: Troy F.

I had not considered property appreciation. You are right about options but there being no clear answer.

Hello,

I'm looking for a little advice on which debt I should reduce. I have $30,000 I've decided I want to put down on the principal of one of two rental properties I currently have mortgaged. I'm curious to hear which of the two properties you all think I should put the money into. 

Property #1 is a 5 unit with a commercial loan, amortized for 25 years with a 5 year balloon. Current rate is 5.75%. I'm three years into the balloon. Remaining mortgage is $171,000.

Property #2 is a single family, conventional fixed rate mortgage. It is amortized for 30 years at 6%. Remaining mortgage is $107,000.

You may also ask, why not buy another property with this money? That's a great question. One reason is that I am retiring from the military and my income will be changing significantly. I feel reducing debt is a safe bet.

Thanks,

Troy

Investment Info:

Townhouse other investment.

Purchase price: $147,000

Come stay at our short term rental in Dubuque, IA. Check it out on Airbnb and message us here on BP for more rates and information.
https://www.airbnb.com/rooms/882760976923716859?guests=1&adults=1&s=67&unique_share_id=09ab42ea-a950-45db-b580-aaaab5c603f7

Hey BP,

I'm thinking about purchasing this deal as a live-in FLIP. I'd plan to own it about 18 to 24 months. The property is 4,296 sq ft. The write up sounds good but it needs a ton of work. Aside from the kitchen what isn't broken is out dated. It's on a 1 acre lot, private well and septic. As far as I know the well and septic are good but I will confirm with an inspection. It does have paid for solar so that keeps the utilities low. I'd like to live in the top half with my family of 3 kids and my wife. The top alone is 4 bedroom, 2 bath.  I would airbnb the bottom half as a two bedroom capable of sleeping 6. Located in eastern Iowa it isn't a high traffic area. The AirDNA estimator calculates a $16,000 annual net operating income. The Fix and Flip calculator calculates a $28,000 profit. This seems like a lot of work for a small payout. What am I missing? Is there more income here that I am overlooking?

Looking forward to your input.

Troy

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Ok, I'll check those things out. Thanks for the tip.

Hello,

A year ago, maybe two, I listened to a BP podcast about these properties that housed adults needing nursing care. The nurses would come stay at the facility and care for the adults for a period of time. The numbers on these deals claimed to be amazing. It sounds like something I could do here in our town of Dubuque, Iowa. I don't recall the specific name of these facilities and cannot find the podcast. I know it's a stretch, but does anyone know what strategy this might be and where I can find out more about it?

Thanks,

Troy

Hello,

I am looking for the BP community advice on how and when to stand your ground on pet policies. We've owned and operated 15 units across the midwest for the last five years. We've learned from the BP community the importance of having a pet clause in all of our leases. All of our leases state that a tenant must get written approval prior to getting a pet. We recently had a long term tenant get a dog. Instead of notifying us, we discovered the dog after a couple of complaints about a barking dog coming from one of the apartments.  The dog is a 12 week old Cane Corso Mastiff Mix. After some research I found this dog is known as a 'body guard' dog. It gets up to 110lbs. The apartment is a one bedroom at the top of a long flight of stairs. There is no yard other than a small common area out front where all tenants enter. The building is on a main street and land locked by other buildings. Meaning there is no nearby place to let the dog stretch his legs. 

My initial instinct was to write up the pet addendum, assign a pet deposit and pet rent and remind the tenant they are supposed to get written approval before purchasing a pet. After reviewing the type of dog I feel this is not the environment for this dog. I don't think it's fair to keep a dog like this in such a small space.  Looking for your opinion. Should I allow this dog? If not, how do I go about asking the tenant to find a new home. They have been a great tenant for the past several years.

Thanks!

Hello BP,

I have an opportunity to buy a home from a sheriff's sale.  In oreder to close on the house you must have 100% of the cash the day of the auction.  Sale price will likely exceed $270,000.  The property is easily worth $340,000 as is.  I have an investor willing to front the money.  The plan is to have the investor buy the home and then I will get traditional financing through a bank.  I've already been pre-approved.  The question is, can I buy the house for the investor in his name?  I'm thinking he could wire funds to Walmart in the form of a cashiers check.  I would then take that check to the sheriff's office and purchase the property in his name.  Will that work?  Is there a step in this process I am missing? It seems so simple in my head.  

Thanks,

Troy

Hello BP,

I've got a tenant harassment problem and I'd like to know how you would handle this situation.  We'll call them tenant A & tenant B.  Both A & B pay on time, every time.  Both take care of the property like it is their own.  Recently a friend of Tenant B parked in tenant A's space.  In response tenant A did not knock on the door and ask them politely to move their car nor did he call me and ask me to reach out to the tenant. Instead he called the police.  Not an ideal way to handle the situation in my opinion.  Other than this specific example they just aren't very cordial to each other.  I'd love for them both to continue to live there for years to come.  They both have stated they would like to live there for years to come but they aren't sure how much longer they can handle each other.  Are there any tips on how to build better tenant teams?  

Thanks,

Troy

14,000 listings and 4,700 searches.  Those aren't very good odds.  Thank you to everyone for your priceless input.