All Forum Posts by: William Whitley

Quote from @Edd Sylvester:

My tenants are wanting to switch to month-to-month, for their own flexibility, at the end of the current lease, ending 5/31. Any thoughts? As far as I can tell, this is only an advantage to the tenants. I could end up with an empty rental trying to fill it in December. But maybe I'm missing something. My thought is to offer them the same rent if they sign a 1year lease or some higher amount if they want to go month-to-month, to make it worth the risk on my end. Curious how others have handled this. 

While it’s true that a month to month lease is more advantageous to the tenant, you could consider structuring it to benefit you as well. You could negotiate a higher rental rate, explaining there is a premium for a month to month lease. While you probably do not want to gouge them, you could add say a 20% or 30% premium on it, telling them if they sign a 6 month or 12 month lease, the premium goes away, but if they want a month to month, the premium goes into effect. 

Quote from @Brandon Garcia:

Hi everyone, about to start leasing my first rental property. Any advice on the best way to automate for the tenant to pay rent? I keep seeing this Baselane site pop up. But is Bill Pay via their bank or Zelle sufficient enough? Thanks! 

There are various services out there. If you use QuickBooks Online, there’s a way to set up recurring transactions that automatically charge your tenant every month. Of course there is a fee for that service, but it also ensures the transaction gets into your books automatically. 

Quote from @James Huff:

Hello,

I just purchased a duplex in Louisville, Ohio and close soon. I am 25 years old and this is my first investment property. Would you advise a young person like myself to do something like this? 

purchase price 290,000 at 7.35 rate

Can get about 2500-2600 a month in rent. 

happy to answer other questions but I'm very new to this so feeling iffy about it.

James, 

A duplex is a good way to get started investing in real estate. It’s a manageable first time investment, and even if one side goes vacant periodically, you still have cash flow coming from the other side. 

My recommendation would be to save your positive cash flow until you can build up a good reserve. As you get acclimated to being an investor and develop a comfort level, then perhaps consider becoming a “repeat offender” and buy a second property. 

I would recommend that you make sure to keep good financial records, and record your land and building book value, so you can benefit from annual depreciation expense, which will help lower your net income for tax purposes.

Feel free to reach out if you have any questions. 

I believe, as you pointed out, that having the right mindset is crucial. However, there's another point you raised that I’d like to elaborate on. You mentioned "running the numbers," and I often emphasize that profit is made when you buy a property, not when you sell it. While this statement is typically referring to those who buy, renovate, and resell properties, it also applies to those purchasing properties for rental purposes.

If you don’t acquire a property at the right price, you’re already at a disadvantage. It might still work out, but it’s far better to make an informed decision at the time of purchase rather than trying to recover later.