All Forum Posts by: Mike Hodukavich

I used the Air B&B service myself and was real pleased. 1 of my units I'm going to be moving into may be vacant for the 3 months until I move in. I was thinking of doing this myself.

I literally just got off the 'other forums' I visit frequently. I could say I am extremely experienced in this topic on the non landlord side. This stuff goes on all day across the world without most landlords let alone the governments ever finding out. Tenants can have the stuff cleaned out within hours, before legal inspection.

I was thinking of doing this myself. People are charging premiums and some landlords go the length of pre constructing set grow areas. Look on Craigslist.

A great idea would be to put up a garage if you can and making your tenant pay for the garage and electrical hookup through excessive rent.

Honestly, if you couldn't get a premium I would weigh your options. Do not allow the BHO (hash extraction) to be done inside and let them know that. Only an idiot would do that inside. They most likely are long term tenants. The problem I see is, I wouldn't think you can add a clause on the lease and than turning around and telling the insurance company that you had no idea.

I'm trying to figure your monthly income after expenses. I figured based on your highest renovation cost you would've invested $48k.

I figured ~$250/mo net income plus an additional $275 if you don't have a mortgage? (using the 50% rule.)

Thanks. So excluding taxes and insurance, I would break about even with the 50% rule. That being said, I need to do the renovations and increase rent a.s.a.p. to bring income up to around $4,000/mo

@Steve Wilmers 

Thanks for the responses. I definitely had a misconception on the %2 rule. 

The property tax and insurance would both be included in the mortgage.

Insurance is about $1400 and taxes are $15xx/year

This property was purchased not strictly for cash flow, but for appretiation due to the fact the light rail was just put in and the housing will go up in the area since we are 3 stops away from downtown Denver.

Sorry about that.

The property cost was $389k, with ~$100k down (25%)

Hello everyone,

 I put my first topic of discussion in the Introduction Forums:

http://www.biggerpockets.com/forums/55/topics/148264-new-member-moving-to-denver-co?page=1#p992972

Now. The only thing I was educated on was cash flow and appretiation with the property I am about to discuss.

We close on the 30th. The property backs up to electrical lines, and underneath is a walking trail that takes you to the light rail. The light rail is a 2 minute walk.

Now the numbers:

$100k down payment on 4 units

gross income is $3100/mo as-is (needs new kitchens and flooring)

mortgage is about $1700/mo

Now instead of the 2% rule, I would have hit 3%?

Also with future renovations and higher rent (which according to my trusted real estate broker and trusted property manager) I should be able to take in ~$4,000/mo.

Just had a new roof put in. Has (3) 25 year old furnaces which I got a quote of $5100 installed for all 3, could use new flooring. Also has single pane windows.

All that being said according to the 50% rule, as of now, I would intake $1500/mo. which after paying mortgage and insurance would leave me a negative $200.

My question is, what am I missing? I'm trying to further educate myself and appreciate any information. If you need any more info feel free to ask. Thanks, Mike.

@Carolina E. 

I just purchased a quad-plex with power lines out back. Under the power lines is a walkway that brings you to a light rail station. Its a 2 minute walk oit of the back yard to the light rail, which is why I purchased the house. 

The unit is fully rented with educated tenants and even with my inexperience as an investor, I dont believe I'll have a problem keeping it rented. The whole half of the street backs up to these power lines and theres families and tenants all over. 

I used AirB&B once in Denver, Co while I was out on vacation. I had a positive experience and will use them again. I dislike hotels and prefer an apartment or house for the same cost if not a little more.

@Darren Smith 

Mind elaborating on what you mean about the more you go down rt. 25, the crazier it gets. Denver is going crazy in a good or bad way? Thanks.  Mike