All Forum Posts by: Jared K.

Max I,

Yeah, I guess if figures that way to see the per month amount but here is how it was explained to me:

Pay $50K for property X 10% = $5000 over 10 months renting at 1% of the purchase price. The 10 months ($5000) will cover payments w/ excess proceeds for profit, repairs, etc and the 2 remaining months of the year ($1000) will cover tax's and Ins for the year. These guyes have a lot of leverage and thats their buying criteria but I never thought it was good for me b/c the risk seemed to high.

Well this sounds very familiar to me. Had this one several times no matter how well I check people out before I rent to them. Here is what I do. I have it in my lease that if there is no communication for 14 days the apt is considered abandoned and I post a 24hr notice of entry. At that point I enter, inspect, and change the locks b/c it is my building and I can by law. If they want their stuff they will call. Here where I live, the law requires a four day grace to pay rent and if my tenants dont pay and no communication I post a personal notice on the door that if they dont call I will file eviction on the 7th day of the month. If they dont communicate and pay them my attourney files the eviction and a forcable detainer the same day and I take them to court to force them out. I also state in my notice that they will have to pay all eviction fee's etc if they get evicted and if they want to pay up and stay as well. I suggest to know the Tenant Landlord Act like the back of your hand and have a highly recommended attourney that deals with evictions in your area.

I was asked by a person looking for an apt if they could park their motercycle in the livingroom to keep it from being left outside in the weather?.. NO

Had a guy come look at an apt and while we were talking he FARTED and it was a good long one too! It was all I could do to keep from busting out laughing but it just disturbed me so bad I kinda... lost his application...NO

Had someone ask me once if they rented would I put up a fence in the back yard for their kids...NO

Had a tenant for 4yrs ask if I would co-sign for them on a loan...NO

Mr_Investor, not sure how to put what you said in box like you guys do on the forum but wanted to reply to

"This. If you're paying that much per door you're basically paying for a money pit big time."

Many of these $10K houses I have seen are in great shape, have been well taken care of, and are rent ready properties. Some even have newwer mechanics and have been updated throughout the years. Not trying to ruffle any feathers at all just to be clear but wondered if you have owned any $10K houses? I highly agree with your statement on rental mgt. b/c to own something where you dont live that's the best solution and it makes it a lot less stressful and time consuming.

As far as the rent collection in these lower priced areas, the prescreening process is done the same etc. I know a group that is looking for 100 more of these type properties by the end of the year b/c the area offers such great cash flow. They typically get 3br's as a gorup agreement and love getting them at these prices b/c of the high rate of return they offer.

When I stated on the 1st part of the post that a lot of investors pay $50K for a house to get $500mo it was b/c I know several investors that will buy that way and they call it the 10% rule. They should get 10% of the purchase price for the rent per month and that will cover any payments, ins, tax's etc. This was a few years ago so that may have been the safe zone then and may have changed since then. I do see several investors that pay $30K+ per unit for apts in larger buildings in larger cities and I just dont see the logic b/c you can have 3X that many houses bringing in $1500 and have multiple exits with houses.

Thomas H, thats a good story. I have had tenants ask if I could come by their work and get the rent as well but not at a dance club..lol. I usually tell them they should have made arrangements to pay it earlier.

I couldnt tell you how many times they call me on the last day of the grace period at 9PM and tell me I could come and get the rent now. I have actually thought about changing my lease to state it had to be before a certain time b/c of it...lol.

Lots of great comments here everyone!

Matty, Robert was my first big influence and I have quite a few of his books amongst many others.

Financeexaminer, I do have specific areas and properties That I could point out but cant discuss specific properties in here that I am aware of,so I have been instructed. I do know of 10K houses that there's nothing wrong with them. I never heard the electic company wouldnt turn on electric unless a property was considered inhabitable, then I could see.

Stephen: I agree there is risk in every deal and in every area. I think alot has to do with your property manager when it comes to their screaning etc as well.

Todd, I couldnt agree more. Location is a major factor in any investment. Many of the people I know that do buy at the $10K price dont realIy worry about location b/c of price. I hope the guy you spoke of gets out of the property by the way. He might be able to owner finance it and let the buyer cash him out after a few years.

Marc,

Glad to hear there are some positive influencers here. I am new to the site so hope to develop some great relationships myself!!