All Forum Posts by: Will Gates

Maybe there are huge capex items that are in need of being addressed and @Johnoson Crutchfield doesn't want to deal with them? I mean, the cash flow looks great, but ultimately, if you're wanting to get out of the property and you have a buyer lined up... then you may want to consider 1031 exchange? 

@Jimmy Lieu, if you can make the numbers work on an opportunity (Real Estate deal), then yes, any time is a great time to invest in real estate. If the numbers don't work, move onto the next opportunity. Leave yourself in a good place with available cash and maybe even lines of credit so you can heavily acquire in the event of a downturn, but.. go for it! You'll learn so much more when you take the leap.

"we can go below up to $75k" one of my favorite parts of reading this.

The concept is interesting and I've actually talked with them on the phones a couple months ago. It could be a great avenue if you know that you'll be able to pay it off or refinance before the 0% goes away and turns into a huge 18-24% rate. 

One thing I had to dig and pry from WCAP was about the 1% fee on what you're actively using from the available monies. They did not mention that over the phone, but I had read about it... so when I asked the guy about it.. he seemed confused as to why I knew the in between the lines info. Still TBD about it.. could be good or could be really ugly.

Thanks @Tanner Marsey we have.  We will wait and see what they do. 

@Tchaka Owen and @Marc Winter  I'm in agreement with both of you - I am running a business, not a charity, and I agree it's not me being the "heartless" one.  The PM did a bad job running his business, and I refuse to pay for his stupidity. 

@Cassi Justiz That's interesting that stoves are fixtures in OK - that's not the case in TN.  In a normal situation rental, I think I would probably provide a stove, perhaps a fridge, but considering the terms of the lease agreement, I'm inclined to go with the signed agreement and not any other side deals.  

I am closing on a duplex tomorrow, and one of the tenant's has a fixed lease through July 2019.  The lease agreement specifically states that there is to be no range in the unit, but there IS one in there. 

When pressed, turns out the property manager supplied a range after the lease was signed because the tenant's sons' signed the lease (she's 80 years old), and she wanted a range.  There is no written documentation for this.

He now wants me to buy the range from him for $250 so as to not "disturb" the tenant.  I can tell it's an older model, and I have a friend that works in the industry - I could get a brand new, nicer one, for $350, or get one off of craigslist for $150 locally (also newer).   I offered him $150 for me to keep it or he can move it, and he's holding firm at $250.

Am I heartless in my opinion to let him take the range and allow the sons to supply their own if the tenant wants one?  I'm waiting for this tenant to move out so I can remodel the kitchen and increase the rent, so I really don't want to spend money on a range right now, particularly when the lease spells out that there SHOULDN'T be a range.  

Definitely factor potential vacancy costs into your calculations but don't let it deter you from moving forward unless the numbers just don't make sense.

@Calvin Williams.. You'll have to weigh the options of either 1) purchasing and owning the duplex outright, doing some repairs on it, having higher cash flow, building your own credit back up so you could cash-out refinance in 1 year or so.

or 2) does it make more sense to find a lender who will loan work with you, could be higher rate and terms.

I'd recommend running the numbers multiple ways and see what works best for you, knowing that the numbers may not factor every single bump, hiccup, or repair that you may encounter. Ideally, don't put all your eggs in one basket.. so if buying 1 duplex with cash will deplete your safety net, savings, etc... maybe consider other options?

Househacking and roughly 1% rule, excellent!!!