All Forum Posts by: Tyler Watts

BB&T does 80% sometimes 85% of the appraised value if it's a scenario like yours where it's all cash. Contact them and talk. 

Set up your keyword alerts and you'll get notifications of things going on around your area. Your at the best place to gather knowledge. Read, read and read some more. 

Knowledge ='s Power

David,

Welcome to BP. All your answers are in BP. Use the search feature and start researching and you'll find more than enough info to all your questions. There are many "right" answers. I'd recommend reading the forums and developing your own set of answers.

Rental agreements can be found on BP and really anywhere. If you have more $ than time, then I'd go thru an attorney. 

Deposits can vary but the typical is 1 months rent. 

Pet deposits vary as well. Could be an additional deposit or a monthly charge.

Application fee I charge at cost. I use myrental.com to screen clients. I also interview them in person to get a feel for them. If you don't want to take this path, go with a property mang. 

Home inspections can very so I'm not sure I follow. I would take plenty of pictures and maybe a video before the tenant moves in. You may want to have a pest control inspection, tenants like to see that and it gives me peace of mind knowing nothing is there before they move in.

@Jeremy Pakalka thanks for the feedback and yes I plan to be 100% honest. So I after speaking to some other investors I had a concrete answer and that was to pay back the individuals who personally put money into the deal. So the LOC did not cover all rehab cost, resulting in personal money being put into the deal to finish. So the additional funds would pay back some of the funds that were put in.

This is my first re-fi and it is on a duplex. Bought 1 year ago with conventional financing and utilized a LOC to rehab. Bank told me that a re-fi will be based on the appraised value, not the loan or purchase price (when I asked about this a year ago). So the one year mark is up and I'm talking with the same banker and now she said something along the lines of they will re-fi based on the value of the LOC and conventional loan. So I asked about the re-fi based on the appraised value and her response...

"What would the remaining fund be used for"

I plan to use for continued investment into the business to buy more properties, but I'm not sure that is the answer she or the underwriter is looking for.

Any help is greatly appreciated!

Providing a fridge is not a requirement, but it will increase your tenant base and can increase your rent. If your netting $1k a month My first 4 doors I didn't provide anything other than a fully rehabbed property. I was in your shoes, and nervous about the liability of taking on appliances and what do if something happens. I didn't want it to fall on me if something happened to the fridge, but as I grew more educated I just worded the contract to cover the fridge if it went out. The tenants belongings inside the fridge is on them, so it's a shared risk between both of us. Now if something happens and you have  a good tenant and want to show some appreciation to them, it's never a bad idea to restock their fridge if something happens. Again, it's based off a good tenant and look at it as an opportunity to help and get a tax deduct. I am rehabbing a triplex and I did transition to providing a fridge and stove, but I am getting premium rent and felt as if a fridge and stove will help after talking to other multi-family investors. In the area I am in (Shelby/Gastonia, NC) it is common to not provide appliances so again, an opportunity to set yourself apart from the market is to provide one. 

In every problem usually lies and opportunity to grow your business.

Location is everything. I don't know the area, but the numbers look great. Also depends what stage you are in the game. I have a duplex in NC with similar numbers to yours and it's a cash cow. The location is good and the neighbors are great. Go a mile down the street and it's rough. It did concern me, but after evaluating, I decided to move forward and it's been a great little place. I can't speak much on out of state investing, I'm the old school, OCD investor who has to drive by and look at my properties. As far as your evaluation of the property, the numbers look great and your doing a good job looking at it from that angle. So to answer your question, yes that is a good deal. If your concerned about the area, I'd research, research and research more! Not a bad investment to fly out and spend a day driving around and talking to the neighbors, you'll learn a ton from them about the history of the area!

Good Luck!

@Michael Bowman  

He is absolutely correct. I just went thru my first eviction in NC. Due to me waiting it costed me around $2500 worth of rent/damage to the property and not to mention the amount of time I had to spend handling all this. If they don't leave on their eviction day then you can file for a writ of eviction. Unfortunately it gives them another 7 days but that's when the sheriff shows up and gets them out. Mine moved out the night before the sheriff came which is typical. 

The market is strong and people are looking for rental properties, get her out and get another one in. I fell for the game playing and how they had all these problems, eventually all their problems turned into mine b/c I listened to their sob story.

it's a business, not a charity case

Word of mouth will travel faster than you think. Ask around and if you get the contact of someone, call and ask them to lunch. Explain to them your plan (make sure you have a plan). Last thing any investor wants to  hear is........."I want to be in real estate...... then a long pause of silence". Have a plan, it's not going to be full proof but it proves to them that your thinking and trying. I would recommend you have a 1 year,5 year and 10 year plan. What type of properties your going to focus on, etc. Trust me, they'll open up to you and will hold your hand without you asking. 

Oh yea, don't forgot to pay for their lunch....best investment you'll make!

I have 7 properties I have bought/rehabbed/leased and currently managing while working a job that requires 50+ hours week.  I have set systems in place so i don't have to be there, just make a phone call and receive money thru popmoney.com. The biggest key to being able to juggle this is having a good contractor. I have one that is great and I literally buy the property and hand him the keys and he tells me when it's done. We talk once a week about the property, but I rarely go see it unless I just have time. He's done everyone of my proprieties and knows what I want and the budget to stay within. The second is having secondary contractors when your units that you are renting have issues. I don't want my general pulling off the re-hab to go fix a plumbing issue. I'll call a plumber for that and get it handled. 

Network, network, network and you'll find good contractors which takes a huge load off your back. Yes you eventually have to take chance on them, but when they do well, tell them, buy them a $25 gift card to starbucks, take them to lunch. I promise it will save you thousands their loyalty will be second to none. 

# of units someone can manage depends on the systems they have in place. Create systems and you will grow at a rapid rate.