All Forum Posts by: Anthony Wick

What are everybody’s mortgages at, 4-5%? I’ll take all your cash, give you 5% returns every month for cash flow, and I’ll make 10-20% on your cash. All while your tenants still pays off your mortgages.

Everybody around here charges one months rent for deposit....except me. My rents go for between $1,150-1,325 a month. I wanted something to stand apart from the crowd, so I went with a $1,000 deposit. Why? Well, I figure that extra couple hundred dollars won't matter much if somebody completely thrashes my property, but perhaps that couple hundred could sway somebody to apply to my place over another. Does it work? Well, I'm not sure, but I don't have vacancies so far. I also keep the standard credit, employment, criminal, eviction checks of course. Again, I figure if the damage gets to $1,000 or more, I have bigger issues than that extra couple hundred bucks that I'd keep from the tenant. 

I'm pretty new myself. New to Iowa anyway. Bought a duplex in Ankeny in January 2018. Own a SFH. Currently looking for 3-4 plex in the Des Moines area. Not seeing much. Might have to go the duplex route times two again. Hoping to get to the meet up at Ingersoll Tap on May 17.

@Caleb Heimsoth

I could have bought same fridge for $450. But warranty company has goofy contracts with people. Standard top freezer 18 cu ft, with ice maker, color black. Warranty on both sides of duplex came from seller in January. I won’t be buying one later. 

I forgot to mention, if I had to buy a fridge out of pocket, I was still going to have warranty company fix that old fridge, even if it cost a fortune. I'd then keep that fridge for an extra for another unit. No way I was letting the warranty company off scott free after that headache!

HSA Home Warranty story. I'll keep brief...

Tenants fridge stops cooling in January. Warranty company calls tech. I have to pay $100 deductible. Tech visits a total of 3 times, replaces two parts. He's clearly guessing. Fridge works for 6 weeks. I call again. Warranty company charges me another $100 charge (because I didn't call within 30 days so it must be a separate problem). I'm thinking we need a new fridge. Warranty says that has to be decided by tech. Of course, why would the tech say that, when he can keep coming back and "fixing" the fridge?! So, I request new tech. He's a no show (Sears). Ask for yet another tech. They call the first one back. He now says; "I'm not coming out there because all you want is a new fridge, and I can fix the old one". So, request yet another tech. He comes out and says; "You need a new fridge. That first tech has no idea what he's doing". Yay, a new fridge! It took a total of three months, $200 out of pocket, 5 tech visits/appointments, but I did get a new $750 fridge. I also gave tenants $100 off rent for troubles and thawed food from freezer. So, complete headache. But, I did get a new fridge and a reference for appliance tech, as I now have somebody I think I can trust. 

  ***of note, I had told the tenants if this final tech didn't recommend a new fridge I would buy one out of pocket and have it delivered that week, as there would not be a fourth tech called out for the same problem. 

Looking for 3-4 plex, non owner occupied. Forget about interest rates, I can't find any place to let me do 20% down instead of the standard 25% down. Saving that $10k or so would be nice to move towards the next deal. But, I was quoted 5.25% 30 year fixed for 25% down. I'm not going to say it's collusion, but you look up the definition and decide for yourself...

After much searching, I've decided a difference of $5-10 isn't worth my efforts to keep looking for a change. Tenant pays the $40. I tell them that up front. I do a prescreen of past landlords, income, local and state criminal checks on open databases. If they get past that for free, I feel good about them paying the $40 and getting approved. And, $40 is a small price when you consider they'll be paying $13-16,000 a year in rents at my places. 

If tenants want to make minor improvements, they not only bear 100% of the costs, but all improvements remain the property of the landlord. No exceptions. Now, I'm talking about things like a rose garden, or maybe even up to a ceiling fan. No remodeling or things that would obviously require a permit or "expertise". Zero rent credits. Maybe, maybe, if they are a handyman, you'd allow them to buy materials and take the exact price out of their rent. Zero dollars for labor. 

Fun little story. Polk County just sent me a delinquent tax notice for my very first payment due after purchasing my duplex. It appears my mortgage company "mistakenly" didn't pay my property taxes! So, just another thing to look at besides the amount of property taxes.