All Forum Posts by: Will Johnston

Thanks, @Chris Mason & @Benjamin Piecenski! That's very helpful. All I could find was pretty bad, "you need two years of history as a landlord" or "no that's not possible" advice, neither of which seemed quite right.

Is it possible for a buyer to use the rental income that would be generated by roommates to qualify for a conventional mortgage?  This is obviously owner occupied with the intention to rent bedrooms to roommates.  In the past I've heard this was possible if the roommates sign leases indicating their intention to move in.

Thanks!
Will

@Christopher Grobbel, thanks! Just sent you a request to connect.

@Kristen Jankowski, thank you for the recommendation!

@Shadonna N., I'd prefer not to post the specifics so as to avoid any legal issues.

@Arthur C., my understanding is that if you own four or fewer rental units in DC (including the one you would be purchasing), you can raise the rent to anything you want.

There are a couple of things to consider here.  First is that the tenant could invoke their TOPA rights making it very difficult for you to purchase the property. Assuming they don't have the funds to purchase themselves or assign their TOPA rights to someone else, you can still do it, it would just take awhile.  You could also purchase their TOPA rights from them, but I wouldn't do that unless they also agreed to vacate before closing.

If you did purchase the property and raise the rent, there's a good chance you'd end up needing to evict the tenant when they couldn't and/or refused to pay the new rent.  My guess is you'd be looking at $10k and 6 months for an eviction.

@John Thompson, I understand DC rent control rules a little differently, although as a DC landlord, if I'm wrong on this, I'd love different information!

My understanding is that you can raise the rent by the CPI + 2%, which for 2018-19 is a total of 3.4%.  Or if the tenants are senior citizens, the lesser of CPI or Social Security COLA, which is 2.8% for 2019.

10% is the cap on what you can raise it each year (i.e. if CPI +2% or CPI/SS COLA are greater than 10%, you can only raise it 10%).  I didn't think you could raise it 10% automatically. You're limited by the CPI+2 or CPI/SS COLA.

If the unit is vacant, then it's 10% (or to the same as a comparable unit up to 30%), and of course, if you're not subject to rent control, then you can raise it to whatever you want.

Hi all,

Unfortunately, I am having some issued with one of my tenants and may need to retain the services of a Landlord/Tenant attorney. Any chance you've worked with someone you would recommend?

Thanks!

Will

@Derek Savage, it’s great that you’re asking these questions.

College isn’t for everyone. That said, it opens a lot of doors. It’s not just about whether it can help you make more money as a real estate investor.

If you’ve got a degree, there are a lot more opportunities out there for you. If you ever decide real estate (or entrepreneurship/self-employment in general) isn’t for you, it’s a lot easier to move into another field with a degree.

There’s also something about the college experience that’s valuable. The late nights discussing politics, religion, and world affairs with people from all different walks of life can truly help make you a more thoughtful and compassionate person. I actually recommend that most folks going to college do the whole move away from home and get roommates thing. Honestly, community college is usually like high school part two. A four year university where most folks live on campus as opposed to live at home and commute is a whole other world.

I know there’s been this trend recently towards skipping college due to the cost. Yes, one needs to be careful. Don’t take out $150k in student loans to get an English degree. But if you graduate with a degree in computer engineering and 80k in debt, you won’t have a problem paying that off. And there’s a lot of middle ground. Want to study English? You can probably do that at a good state school for a reasonable price.

If you’re really just interested in making money as fast as you can, then something like computer engineering is probably the way to go. You can get a high paying job, sock your income into investments, and retire early.

And while I think it’s woerhwile to make money, don’t forget that there’s more to life. Getting paid to do something you enjoy is a gift. If you can, do that

Hey @Scott Smith, thanks, I’d appreciate a recommendation! I’m hoping to find someone in Missouri, St. Louis if possible, since that’s where the project will be based.

I’ve agreed to be the primary money partner for a fix and flip deal in St Louis.  I live on the west coast and don’t know the STL market well, so I’m relying on the boots on the ground to actually run things. I’m largely a silent partner.

I trust the agent putting the deal together, and I've certainly analyzed the deal itself to make sure the ARV, construction costs, payout structure, and timeline are reasonable.

That said, what are the things I should look out for, insist on, be aware of, etc.?

All of my other investments to this point have been rentals with varying levels of renovation, and it’s always just been my wife and I controlling the process and the funds.

On that note, any advice on whether I should put this investment just in my name or in both my wife’s and my name? We file taxes jointly, so I’m not sure if there’s any advantage/disadvantage to it being both or just one of us on there.

Thanks in advance!

I've agreed to be the primary money partner in a fix and flip deal, and I'd like an attorney to review the LLC operating agreement and payout structure before I sign everything and hand over my $$$. Does anyone have someone you've worked with that you would recommend?

@Account Closed, the group I work with does. Sent you a PM.