All Forum Posts by: Tyler Gibson

@John Mangiameli This link explains how you get NOI. It specifically excludes principal.

https://www.investopedia.com/terms/n/noi.asp

Yeah, I know this kind of language is normal I was just saying I am surprised that a county recorder would care about that language in the deed. I have helped configure hundreds of rejections reasons for county recorders over the last 5 years and I've never configured anything like "there is an invalid clause in the deed". 

@John Barry I'm surprised that the county read the deed that closely. Typically they just look for the names, Legal description, sale price, and ensure that the signatures are all valid. I think removing the language should be fine. I used to install recording software in counties around the country and while I have not worked in Mass., I have worked from Seattle to Key West and my experience is that recorders don't care about the legal language except for the legal description and other required information to record the deed. if the developer really wants something on record, you could record an affidavit with the agreement. 

@Vincent Sottile @Taylor L. is right, do your research if you want to do AirBnB. Florida cities have started to crack down on the sort term vacation rentals. There are some places like up in the panhandle where the local governments support it and welcome it and then there are other areas like the city of Orlando that have strict limitations. Just know the regulations in the area before you buy. 

@Louie Jhan Centeno Maglaque I think most people on here have some good suggestions. I would add that when I run my numbers I always put rent on the low side in the event I can't get what I think is the high end of the market. I will, of course, try to list on the high end but if the numbers work on the low end then the extra is just gravy. I am not familiar with Kissimmee rates but $1000 is probably doable. It all depends on the property. How many beds/baths per unit? if it is a 2/1 and it isn't in a great area then you may be looking at more of $900/month. 

@Ashleigh T Lambert did you discuss with the attorney that you would be using a land contract? I believe that with a land contract the owner retains title to the property until you pay off the loan. This means that they could go out and borrow against it. This creates risk because if they take out loans and never repay it could fall into foreclosure. This also means that if the title is not in your name you could not mortgage/refi.  I would want to do a deed of trust or simply record a mortgage and a warranty deed. I may be wrong but I believe that the title would nor convey until you make the final payment which does create risk for you and none for the property owner. 

@Account Closed Yes I believe you would. You must live in a property for 2 out of the last 5 years in order to qualify for the capital gains exemption. You can try a 1031 exchange to avoid the capitol gains. 

@Mohamed Farih I leave mine in the bank. But I put it in a high yield savings account. I currently have my money in a Wealthfront Cash account 2.35% interest. I recently saw adds for green dot wich advertises 3%. I know that this is ultraconservative but since I would like to use the money to reinvest in another property at some point then I would rather not risk losing value in the stock market. I am not against the stock market I have investments there too but bu my real estate money. 

@Christopher Davis I would be looking for a better deal aka a cheaper property. I try to get my gross rents at 1% of the purchase price. If you can do that the numbers are easier to make work. If you plan to have a property manager then 114.98 in monthly expenses is not enough. Is there a lawn ? will you mow it or pay someone? try one of the calculators on here they are good and call out things you may not be thinking about. 

@Quan Tran , In theory, this is a fine idea. I would take into consideration what it will cost you to make the conversions and then to undo the conversions when you want to exit the SFR. Make an alteration to the point where you convert all or the majority of the common areas in a home to bedrooms may increase your rental income but could seriously harm the property value when you go to sell at some point in the future. The other thing to consider is if students would want to live in a home that doesn't have a family room or dining room. Would there be a common area other than a kitchen at that point? I know that young people today can spend the majority of their time on ther devices instead of interacting with the people and places around them but by removing the common areas you are forcing these students to spend all of their time at home in their rooms. any ways some food for thought.