All Forum Posts by: Steve M.

Yikes ~ With the cost of utilities rising daily it seems, this would be a HUGE pitfall for me here in Tennessee. Are you sure it doesn't depend on the housing? SFH vs MFH or Mix Use?

As for the original OP, I agree!  Plumbing fixtures and irrigation systems!  I pull irrigation systems upon buying a home, and check all toilets & faucets prior to renting.  I've been known to change flapper valves as new tenants are moving in :)

12mm laminate through & through.  I've only been doing this for a few years, but I have yet to replace any.  Ideally ~ 3/4" Oak hardwoods if I can be found and installed at a reasonable $$$ ... But 95% of the time, its 12mm laminate.

As for engineered hardwood ~ don't get me started on that garbage.  We bought a house built in 2012, and the engineered hardwood is already cracking, and showing a good amount of "wear".  We'll likely pull it and redo in the next couple of years.

Disclaimer:  Not a tax accountant, nor do I play one on TV ... 

Depending on when that income was accounted for, its probably already been taxed.  Seeing as an S-Corp is a passthrough entity (via your Social), and assuming that income has already been taxed, I'd shut the S-Corp down, dissolve the corp,  and transfer funds in to your personal account.

At that point ~ you have a much better shot of getting a loan/funding via going the personal route, over a failed (or no longer bringing income in) ~ advertising S-Corp.

I'd find a Local RE Accountant or CPA ~ Go over everything with them, and see what they may suggest :)

Relatively open ended question ...

Ideally ~ A property manager should act as an extension of the investor while keeping the best interests of the owner in mind.

Reality ~ The few I have worked with over the years have only had their OWN best interests in mind.

I entirely control my own properties now and stick to the strict guideline of, that if its too far away to manage, its too far away for me to own :)

That's not to say my opinion won't change, I just haven't met a Property Manager who has actually "walked the talk" :)  Most spit a big game, but that's about it!

Truth be told ~ I did it because I was very interested as well :)  Plus I thought you were SUPER cool for asking :)

I assume MRIS is your local/state MLS? I've never heard of it.

Assuming it is ~ Likely yes. We have to pay for access to our local MLS, but you must be licensed and have a principle broker.

Hope that helps!  My wife was a licensed agent for a couple years.  She got tired of doing all my dirty work (multiple offers, constant searching, etc...)  She eventually retired her license and I just recently got licensed myself!   Good luck! :)

Just checked on by voting for you :)  Nope ~ doesn't look like it can be undone!  

Q1: During my telephone screening today, one guy said that they recently filed for bankruptcy. but his wife is a Registered Nurse and they have no children, no animals, and are not smokers. They earn about 7X's the monthy rent. Do you all consider tenants with bankruptcy or should I totally avoid them?

A1:  No ~ A bankruptcy does not entirely rule them out.  Depends on what it was for, whether it was discharged or not, and how long ago it was.  Obviously, if the applicant is in the midst of one, and it has yet to be discharged, that would rule them out.

Q2: What if I have several families 3 or 4 who complete applications, do I need to collect an application fee and run background checks on all? Do people get upset if they pay application fee but are not selected?

A2:  I run 1 application at a time.  No 2 applicants are alike ... While I don't follow the "first come first serve" rule of thumb, it plays a small part.  There will always be a standout or two application.  I start there before I process the rest.

Q2: Is my application fee of $50 per adult in the family a reasonable fee? 

A1:  Depends on the area of the country?  It sounds relatively high for my area, but it my be just right for where you are.  My application fee is 100% a passthrough expense.  I don't make anything on this fee, and it goes direct to the agency I use for credit/background checks.  For the record, I charge a $30 application fee PER adult :)

At the end of the day, realtors have to keep their clients best interests in mind.  For all you know (and your realtor know), you may just be insulting the realtor, and not his actual client.

I'd take that the information provided by the listing agent with a grain of salt.  Take the Yes/No/Counter and go from there.  Don't spend too much time dwelling on the "unknown" and prepare for the what-if's.  

Good luck!

Numbers look good ~ I wouldn't be too concerned with appraisals when the numbers make sense. At the end of the day, you're an investor, not an OO buying a SFH.

If nothing else ~ it gives you some bargaining room.  Tell the seller you'd like to split the difference and see if he aggress.  May be a quick way to save $3k :)

Either way ~ its a screaming deal IMO!